Currently viewing: News Press Releases
Murray & Roberts announces interim financial results
Johannesburg, 28 February 2018 – Murray & Roberts today announced its interim results for the six months ended 31 December 2017.
· Financial results:
o Revenue from continuing operations increased by 10% to R11,8 billion
o Diluted continuing HEPS increased by 104% to 55 cents
o Attributable earnings increased by 283% to R110 million
o Cash, net of debt, increased by 18% to R1,3 billion
o Order book for continuing operations declined by 10% to R22,1 billion
· Strong performance and earnings growth reported by the Underground Mining platform, which is the largest contributor to Group earnings.
· Acquisition of a further 17% interest (total shareholding now at 50%) in the Bombela Concession Company (RF) (Proprietary) Limited (“BCC”) - an investment yielding strong returns.
· Improvement in Group financial performance is mainly due to a reduced loss in the Middle East and the one-off charge relating to the Voluntary Rebuild Programme incurred in the prior period, not repeated in the current period.
· Lost time injury frequency rate (“LTIFR”) deteriorated to 1.19 (FY2017 H1: 0.56). Regrettably, one fatal incident occurred.
FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
Henry Laas, Murray & Roberts Group Chief Executive, comments: “Murray & Roberts has transformed itself into a multinational engineering and construction Group, with a focused portfolio
of businesses providing services primarily in the natural resources market sectors of metals & minerals, oil & gas, and power & water.”
Revenue from continuing operations increased by 10% to R11,8 billion (FY2017 H1: R10,7 billion) and attributable earnings increased by 283% to R110 million (FY2017 H1: loss of R60 million). Diluted continuing headline earnings per share (“HEPS”) increased by 104% to 55 cents (FY2017 H1: 27 cents). Cash, net of debt, increased to R1,3 billion (FY2017 H1: R1,1 billion).
The order book for continuing operations declined by 10% to R22,1 billion (FY2017 H1: R24,5 billion). The reducing order book is reflective of current market conditions and ongoing project delays in the oil & gas and power & water sectors.
In terms of the Group’s dividend policy, the board of directors of the Company (“Board”) will consider a full-year dividend post year-end with a cover of between three and four times earnings.
Oil & Gas Platform
Revenue increased to R4,7 billion (FY2017 H1: R3 billion), predominantly due to scope growth on the Wheatstone and Ichthys commissioning projects, which are nearing completion. Notwithstanding revenue growth, operating profit reduced to R99 million (FY2017 H1: R103 million), reflective of lower margins in a very competitive market. The order book decreased to R3,8 billion (FY2017 H1: R4,9 billion), comprising smaller value and shorter duration orders, as all large value orders have been delivered. The platform regularly reviews and adjusts its cost structures.
Underground Mining Platform
The Underground Mining platform delivered a strong financial performance and is the largest contributor to Group earnings for the period under review. Revenue was maintained at R4,1 billion (FY2017 H1: R4,1 billion) but operating profit increased to R239 million (FY2017 H1: R198 million). The order book also increased to R15,3 billion (FY2017 H1: R12,9 billion) against the background of improving market conditions.
Power & Water Platform
Financial results and order book are declining as the Medupi and Kusile power station projects near completion. Revenue decreased to R2,6 billion (FY2017 H1: R3 billion) and operating profit to R51 million (FY2017 H1: R66 million). The order book decreased to R2,7 billion (FY2017 H1: R5,8 billion). The platform regularly reviews and adjusts its cost structures.
The acquisition of an additional 17% in BCC was concluded on 8 December 2017 and a subsequent increase in the fair value of this investment was recorded. This investment is yielding strong returns and the Group continues to explore investment opportunities that could secure project work for its three business platforms.
The New Strategic Future plan was designed with two phases in mind:
· optimising the Group’s portfolio of businesses; and
· positioning the Group for sustainable growth and value creation.
The first phase of this strategy has been largely completed and the Board is now focused on enhancing business performance and growing shareholder value. The Group’s robust financial position provides the capacity to support its organic and acquisitive growth plans.
The sustainable growth and value creation aspiration is based on the long-term demand for natural resources. The drivers of such growth include a growing global population, global economic growth and ever increasing urbanisation.
The Group is experiencing improved trading conditions in the Underground Mining platform, but the current market outlook for the Oil & Gas and Power & Water platforms remains challenging. In this context, the Group continues to focus on cost reduction and operational excellence to maintain and improve margins.
“The Group’s Statement of Financial Position and robust cash position provide capacity for growth initiatives to bolster the Group’s earnings potential. The Group’s organic and acquisitive growth plans are focused on positioning its businesses in key growth sectors in developed markets, as well as higher-margin segments of the project life cycle,” concludes Laas.
*Please note that this media statement contains extracts from the full reviewed interim financial results for the six months ended 31 December 2017 and should be read in conjunction with the full reviewed interim financial results available on www.murrob.com.
For further information contact:
Group Investor and Media Executive
This announcement includes certain various “forward-looking statements” within the meaning of Section 27A of the US Securities Act 10 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect the current views or expectations of the Board with respect to future events and financial and operational performance. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including, without limitation, those concerning: the Group’s strategy; the economic outlook for the industry; and the Group’s liquidity and capital resources and expenditure. These forward-looking statements speak only as of the date of this announcement and are not based on historical facts, but rather reflect the Group’s current expectations concerning future results and events and generally may be identified by the use of forward-looking words or phrases such as “believe”, “expect”, “anticipate”, “intend”, “should”, “planned”, “may”, “potential” or similar words and phrases. The Group undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this announcement or to reflect the occurrence of any unexpected events. Neither the content of the Group’s website, nor any website accessible by hyperlinks on the Group’s website is incorporated in, or forms part of, this announcement.
About Murray & Roberts
Murray & Roberts has a long and proud heritage of more than a century and is today recognised as a multinational project life cycle group. It’s the Group’s vision, by 2025, to be a leading multinational group that applies its project life cycle capabilities to optimise client’s fixed capital investment. The Group achieves this by focusing its expertise and capacity on delivering sustainable and fit-for-purpose project engineering, procurement, construction, commissioning, operations and maintenance solutions.
The Group delivers its capabilities into three global market sectors: oil & gas; metals & minerals and power & water.
Murray & Roberts is headquartered in Johannesburg, South Africa, and is listed on the JSE Limited. It has offices in:
- South Africa, Mozambique, Zambia and Ghana
- Australia and South Korea
- North America
- USA and Canada
Murray & Roberts is a group of world-class companies and brands aligned to the same purpose and vision, and guided by the same set of values.
More information is available at www.murrob.com