The Monadelphous Group Limited (ASX: MND) share price is gaining in morning trade, up 2%.
The engineering company provides construction, maintenance and industrial services to the resource, energy and infrastructure sectors.
Below we look at its latest contracts update.
What did Monadelphous announce?
The Monadelphous share price is rising after the company reported it had secured several new construction and maintenance contracts.
The contracts, in the resources sector, are worth a total of roughly $215 million.
BHP Olympic Dam Corporation has engaged Monadelphous for smelter campaign maintenance works at its Olympic Dam copper mine in South Australia. Monadelphous said it will start work straight away, with the contracted work expected to be completed in December.
Monadelphous already has a separate maintenance services contract at Olympic Dam. This morning it reported a 2-year extension to that contract. This will include “civil, structural, mechanical, building maintenance and electrical services, as well as the addition of underground rail maintenance services”.
The company also reported it has secured several sustaining capital contracts under its panel agreements with Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) in the Pilbara region of Western Australia.
The contract with Rio will see Monadelphous provide construction and support services for the Gudai-Darri iron ore project. That work is expected to be completed by the end of 2021.
Monadelphous is also active internationally. It reported that its maintenance and construction services segment, Buildtek, has been awarded a 3-year contract in Chile with Codelco.
Monadelphous will manage the operations and maintenance of water infrastructure at Codelco’s Chuquicamata underground mine in Calama, Chile.
The company also received 2 other new contracts with Codelco as well as one with BHP Minera Escondida to construct “modularised pump stations and associated infrastructure” at the Escondida copper mine in Coloso, Chile.
Monadelphous share price snapshot
Monadelphous shares have been under pressure over the past 12 months, down 10%. By comparison the S&P/ASX 200 Index (ASX: XJO) has gained 23% in that same time.
Year-to-date the Monadelphous share price has continued to underperform, down 26%.
The post Why the Monadelphous (ASX:MND) share price is marching higher appeared first on The Motley Fool Australia.
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