Engineering group Monadelphous posted a 6.3% fall in net profit to $146.5 million as it shed employees in the face of a softening mining industry.
However, the result for the year to the end of June was held up by growth in oil and gas contracts.
The net profit slump flowed from lower revenue of $2.3 billion and followed two years of extraordinary growth.
Managing Director Rob Velletri says the impact of softening in resources was reduced by a focus on productivity and increasing activity in the LNG and coal seam gas markets.
Oil and gas customers contributed more than 40% of total sales in the latest year.
Cost cutting achieved annualised cost savings of $53 million.
“With the tightening conditions in mining and minerals, we continued our focus on improving productivity to ensure we remain competitive, efficient and responsive to customer requirements,” Velletri says.
The group’s work force was cut by 25% to 5,321 in the year to the end of June.
New contracts and extension to contracts of $1.8 billion were secured in 2013/14, including the company’s largest ever construction contract for $680 million work on the Ichthys LNG Project in Darwin.
A fully franked final dividend of 63 cents a share was declared, taking the full-year dividend to 123 cents.
This chart shows how quickly Monadelphous Group shed 25% of its staff:
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