Monadelphous said measures taken by governments and industry to prevent further spread of the virus have resulted in the delay, suspension, deferral or reduction of services across many of the company’s projects and worksites, as well as disruption to productivity levels.
The company also said supply chain issues experienced by its engineering and construction division had caused a number of project delays, while its maintenance division had seen a downturn in activity levels, particularly for fly-in fly-out operations.
To combat these negative impacts on the business, Monadelphous announced it would be discontinuing its water operations in New Zealand and consolidate its east coast engineering construction operation into a single eastern Australia business unit.
Additionally, the company’s Chair, Managing Director and Non-Executive Directors have agreed to a 30 per cent reduction in salary and fees for the next six months, while the Executive and General Management teams have also accepted reductions of between 10 and 20 per cent over the same period.
Monadelphous Managing Director Rob Velletri said the company would continue to work with customers throughout the challenging period.
“Our disciplined and prudent management, loyal workforce and strong balance sheet mean that we are well positioned to deal with the challenges ahead, and the opportunities that will arise in time,” he said.
“I am confident that the actions we have taken to refocus the Water Infrastructure business will deliver more profitable and sustainable pipeline of opportunities over the longer term.”
For more information visit the Monadelphous website.
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