The Monadelphous Group Limited (ASX: MND) share price will be in focus this morning. This comes after the company announced it has secured a long-term contract with a mining giant. At yesterday's market close, the engineering company's shares finished the day relatively flat at $11.25.
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Quick take on Monadelphous
Established in 1972, Monadelphous is a leading Australian engineering group that provides construction, maintenance and industrial services. The company operates in the resources, energy and infrastructure sectors.
Monadelphous has major offices in Perth, Western Australia and in Brisbane, Queensland to run its biggest projects. Furthermore, the company supports its operations with projects, facilities, and workshops across seven different countries. These include Australia, New Zealand, Chile, China, Papua New Guinea, Mongolia, and the Philippines.
Why will the Monadelphous share price be on watch?
The Monadelphous share price could be on the rise after the company provided the market with a positive update.
According to this morning's release, Monadelphous has entered into a crane services contract with Fortescue Metals Group Limited (ASX: FMG).
Under the agreement, Monadelphous will provide a number of crane services to Fortescue's Solomon and Eliwana operations in Western Australia. This will consist of supporting general repairs, maintenance and shutdown activities.
Monadelphous noted that it has continued to provide crane services to the Solomon operations since 2017, and Eliwana from 2020.
The contract will run for a five-year period and is expected to generate revenue of around $150 million for Monadelphous.
Words from the managing director
Monadelphous managing director Rob Velletri welcomed the deal, saying:
We are pleased to have secured this long-term contract with Fortescue and look forward to continuing to support their operations in the Pilbara with the ongoing provision of quality crane services.
Monadelphous share price snapshot
The Monadelphous share price has gained around 7% over the past twelve months but is down 18% year to date.
Based on the current share price, Monadelphous has a market capitalisation of around $1.07 billion, with roughly 94.6 million shares outstanding.
