Murray rises on Clough contract win


Murray rises on Clough contract win

Published Date: 2020-10-13 | Source: Stephen Gunnion | Author: Stephen Gunnion

Murray rises on Clough contract win

The engineering and construction services group says its order book supports a return to profitability this year.

Murray & Roberts' shares rose yesterday on news that subsidiary Clough is part of a joint venture that won a big energy contract in Australia.

SecureEnergy, Clough's 50/50 partnership with Spanish group Elecnor, has been selected for an approximately A$1.5 billion (R17.8 billion) contract for TransGrid's Project EnergyConnect, which itself is a partnership to deliver an energy interconnector between the power grids of South Australia and New South Wales, with an added connection to the state of Victoria. The joint venture will deliver the engineering, procurement and construction of TransGrid's portion of the project, which includes four substations and approximately 700km of 330kV transmission line. The project has been strongly supported by the New South Wales government, which has declared it Critical State Significant Infrastructure.

The contract win adds to what M&R says is a significant, quality order book of R54.2 billion at the end of June, including several multi-year contracts. The TransGrid project wasn't included in four big projects in the Mining and Energy, Resources & Infrastructure projects worth a combined R40 billion.

M&R reported a loss for the year to end-June as the Covid-19 pandemic disrupted projects and resulted in a number of impairments. However, it said its order book positioned it well for the period ahead.

M&R's shares closed 7.3% higher at R6.80 yesterday.

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