Monadelphous Group Ltd (ASX: MND) shares are shooting higher following the release of the engineering company's half year results for the financial year ending 31 December (H1 FY21). At the time of writing, the Monadelphous share price is trading 3.46% higher at $12.26.
What did Monadelphous report?
The Monadelphous share price is getting a lift in morning trade after the company reported an 11.2% increase in revenue for the first half of the 2020 financial year, to $948 million.
The company pointed to the continuing recovery from COVID-19 impacts in the engineering and construction sectors as helping drive the boost in revenues. Revenue from its own engineering construction division increased 68% from the corresponding half year. It said work was picking back up on a "significant number" of resource construction projects which had been delayed due to the pandemic.
Meanwhile, revenue from Monadelphous' maintenance and industrial services division declined by 15.9% year on year, impacted both by the virus and diminished demand from the oil and gas sector during the half year.
With activities reduced, particularly in the earlier months of the half year reported, earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 3.5% from H1 FY20 to $57.0 million.
Net profit after tax (NPAT) – which the company stated "includes reversal of one-off provision of $6.5 million made in the 2019 financial year relating to research and development tax incentives" – increased 11% to $31.6 million.
Earnings per share (EPS) came in at 33.4 cents.
As at 31 December, Monadelphous had a cash balance of $169 million and reported $18 million in cash flows used in operating activities for the half year.
Monadelphous will pay an interim dividend of 24 cents per share (cps), fully franked.
Looking ahead, Monadelphous Managing Director Rob Velletri said that with Monadelphous' "reputation as a leader in its markets, and its longstanding commitment to the delivery of safe, reliable and cost competitive service solutions, the company is well placed to capitalise on opportunities and deal with the challenges ahead."
Monadelphous share price snapshot
The Monadelphous share price has yet to fully recover from the blow it took during the wider virus-driven market rout last year. Over the past 12 months, Monadelphous shares are down nearly 25%. That compares to a 3% loss on the S&P/ASX 200 Index (ASX: XJO).
So far in 2021, the Monadelphous share price is down by around 11%.
