Murray notches up another contract win

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Murray notches up another contract win

Published Date: 2021-01-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Murray notches up another contract win

The specialist engineering and construction group expects to return to profitability this year as new projects start contributing to earnings.

Murray & Roberts' Clough subsidiary in Australia has been awarded another big contract, adding to recent projects that it has added to its books. The specialist engineering and construction group says it expects to return to profitability this year as they start contributing to earnings.

The contract, worth about A$400 million (R4.74 billion), will see Clough provide engineering, procurement and construction scope of work on the Waitsia Stage 2 development project in Western Australia. The contract was awarded by Waitsia Joint Venture partners Mitsui E&P Australia and Beach Energy.

The Stage 2 project includes a new 250 TJ/day gas processing plant with a 20-year life cycle that will convey gas via the nearby Dampier to Bunbury Natural Gas Pipeline. The Waitsia gas field is ranked as one of the largest gas fields ever discovered onshore in Australia and it is forecast to bring significant economic benefits to the mid-west region from both the construction and operating phases. Clough's scope of work relates to a gas processing plant including power generation.

M&R said recently awarded new projects were expected to start contributing towards earnings during the second half of its financial year, which would show an improvement from the first half. Its board believed the group would return to profitability for the full year and continue its path to earnings growth beyond.

In an update ahead of its annual general meeting in November, M&R said its book had 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 contract Clough was awarded as part of a joint venture for TransGrid's Project EnergyConnect in South Australia and New South Wales.

While expectations for economic recovery after Covid-19 were uncertain and revised frequently, the company said it was well positioned to operate through the short to medium term uncertainty.

After rising 1.8%, M&R's shares retraced their gains to close unchanged at R8.40.





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