Just to add to this as I work in the industry for a competitor...

Just to add to this as I work in the industry for a competitor of MND, O&G maintenance contractors were hit particularly hard from approx Mar 20 through to Jan-Mar 21, with significant reductions in workforce numbers due to operators cancelling or deferring all scopes deemed "non essential" i.e not safety or production critical.

This would have had an outsized impact on MND due to their heavy exposure to the sector via their KGP/Pluto, Prelude, Ichthys Offshore and (1 contract on Curtis Island but I forget which plant specifically). Due to the speed and severity of the stand down or release of direct labour this would not have been able to be replicated in their indirect overheads as all contracts need a minimum amount of support structure to operate with decent returns only realised once a "critical mass" has been achieved.

I would posit that this as well as the impact on some of their other contracts/ projects was the major reason for the deterioration in their operating earnings.

In addition, during upticks in the cycle, Contractors are always the last to be able to raised rates with many contracts secured months, even years in advance, hence I suspect we will not see a marked improvement in margin until Q1 next year at the earliest.