Rubino told shareholders last week of a 10.9% drop in sales revenue from the contractor’s exposure to the mining sector.

Managing director Rob Velletri said Monadelphous’ earnings had ended two years of extraordinary growth where revenue increased by an astonishing 80%.

Net profit after tax was $146.5 million, down 6.3%, although that included a one-off after-tax gain of $7.9 million from the sale of its Skystar aviation business.

Underlying earnings before interest, tax, depreciation and amortisation was $221.2 million, down 12.1%, broadly in line with sales revenue.

Underlying net profit after tax reduced 11.3% to $138.6 million, while margins remained relatively steady.

Capital expenditure was reduced by 84.7% to $7.1 million, following a number of years of substantial investment in plant and equipment, with Monadelphous tightening its belt to meet the challenges of the next phase of the resources cycle.

The firm’s workforce was reduced by around 25% over the year to around 5320 following the completion of several major projects and slowing overall construction activity.

Fortunately, Monadelphous diversified its business into new markets over the past decade, both in the infrastructure and oil and gas sectors, and while miners have shifted focus to low capital intensity projects such as maintenance and production efficiency, Investment activity in oil and gas remains strong.

The fact Monadelphous has contracts with many of the multi-billion dollar LNG projects across the nation means Monadelphous’ position in the oil patch is “stronger than ever”, Rubino told shareholders.

“Around half of our sales revenue now comes from this sector,” he said.

Last year the firm won $1.8 billion of new contracts and contract extensions, more than 70% of them with oil and gas customers, with the growth of the LNG and CSG sectors reducing the impact of lower activity in the minerals sector.

Iron ore and coal projects dominated activity for Monadelphous’ engineering and construction business, and the division’s revenues were down 14% to $1.67 billion.

Contracts included Rio Tinto’s Western Turner Syncline project near Tom Price, WA where Monadelphous carried out a major multidisciplinary construction project valued at around $300 million, including the construction of 26km of conveyors and a 28km 33 kilovolt high voltage power line.

Another $150 million contract at BHP Billiton Mitsubishi Alliance’s Caval Ridge mine project in Queensland included all mechanical and electrical works associated with the run of mine, surge and train load out system. Work included 16km of conveyors with more than 100km of cable installation.

Other contracted work included work at the Wiggins Island Coal Export Terminal at Gladstone, Qld, and Rio Tinto’s West Angelas Gas pipeline project, WA.

New oil and gas contracts with a combined value of some $1.34 billion were secured during the year, including its largest ever construction contract for $680 million worth of work for structural, mechanical and piping works at the Ichthys LNG project at Darwin in the Northern Territory.

The maintenance and industrial services division delivered sales revenue of $664 million, a slight increase on the previous year and secured $415 million in new maintenance contracts or contract extensions.

The maintenance division enjoys long-term contracts with the Woodside Petroleum-operated Karratha gas plant, with Chevron Corporation on Barrow Island.

Velletri said Monadelphous would look to expand its presence in new markets by growing services in power and water as well as marine construction and transmission pipelines, and it will seek to build its position overseas, notably Papua New Guinea and Mongolia.

“Other opportunities include globalising our well-established China based fabrication services, and exploring prospects to enter the growing oil and gas market in North America,” he said.

He predicted that a reasonable level of activity will still continue in Australia, particularly in iron ore.

Energy projects will peak over the next two years, and infrastructure capex is forecast to remain relatively flat with maintenance and sustaining capital work increasing as new production assets move to the operational phase.

On the safety front, the contractor was able to achieve a 21% improvement in its total case injury frequency rate, another record result.

While the company’s share price is suffering because of ongoing negative sentiment towards the resources sector and a significant decline in commodity prices, Rubio described the company as being in a strong position overall.

“Our leading capabilities, broadening market coverage and multi-disciplined service offering will continue to provide us with access to a wide range of opportunities,” he said.

“We maintain our commitment to long-term growth through the ongoing development of new customer and service markets. We have the balance sheet and most of all, the management team to select and invest in the right opportunities.”

The company ended the year with $217.9 million of cash in the bank and a net cash position of $180.8 million.