Murray and Roberts boosts its book


Murray and Roberts boosts its book

Published Date: 2020-11-27 | Source: Stephen Gunnion | Author: Stephen Gunnion

Murray and Roberts boosts its book

The engineering and construction group says new project awards are only likely to contribute to its second-half performance.

Murray & Roberts says its order book has continued to grow, helped by a big energy contract it recently won in Australia.

In an update ahead of its annual general meeting yesterday, the specialised engineering and construction group said its book swelled to R60.5 billion at the end of September from R54.2 billion at the end of June. That was largely due to a A$1.5 billion (R17 billion) contract its Clough business in Australia was awarded as part of a joint venture for TransGrid's Project EnergyConnect in South Australia and New South Wales.

However, the group said after a difficult 2020 financial year, the effects of Covid-19 had continued into its new year, particularly in the northern hemisphere. Client investment decisions continued to be affected by the pandemic and it had observed delays in new project awards across all segments of its business. It said it was well positioned to operate through the short to medium-term uncertainty, while the economic stimulus packages announced by many governments were likely to create new business opportunities in the medium to longer term.

Recent new project awards would not contribute materially during the first half of the current financial year and it expected the second six months to be much better, especially as the impact of Covid-19 was expected to decline. Its project pipeline remained strong and included four projects which were being negotiated on a sole-source basis, one in the Mining platform and three in the Energy, Resources & Infrastructure platform, with a combined value of about R40 billion. It said the projects may be awarded before the end of the current financial year next June.

The company's shares rose 6.1% to R7.48 yesterday.

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