Press Releases

  • Murray & Roberts Announces Full Year Financial Results

    Johannesburg, 28 August 2019 – Murray & Roberts today announced its annual results for the year ended 30 June 2019.



    ·       Strong quality order book of R46,8 billion and near orders of R14,4 billion. The order book includes several   multi-year contracts.

    ·   Four new businesses acquired (one post year-end) and strategic joint venture established for a total consideration of R0,8 billion.

    ·       Outstanding safety performance in the year. No fatal incidents and the lost-time injury frequency rate (“LTIFR”) improved to 0.71 (FY2018: 0.86).

    ·         Financial results:

    o    Revenue from continuing operations decreased by 7% to R20,2 billion (FY2018: R21,8 billion) 

    o    Attributable earnings increased by 26% to R337 million (FY2018: R267 million)

    o    Diluted continuing HEPS decreased by 10% to 101 cents (FY2018: 112 cents)

    o    Increased gross annual dividend of 55 cents per ordinary share (FY2018: 50 cents)

    o    Cash, net of debt, decreased to R1,8 billion (30 June 2018: R2 billion)

    o    Record earnings delivered by the Underground Mining platform

    o    Prudent level of gearing and a robust cash position




    Henry Laas, Murray & Roberts Group Chief Executive, comments: “The implementation of the Group’s strategy as a multinational provider of specialised engineering and construction services, primarily in the metals and minerals, oil and gas & power and water market sectors, is showing strong delivery.”


    Revenue from continuing operations decreased by 7% to R20,2 billion (FY2018: R21,8 billion). Attributable earnings increased by 26% to R337 million (FY2018: R267 million). Diluted continuing headline earnings per share (“HEPS”) decreased by 10% to 101 cents (FY2018: 112 cents). Cash, net of debt, marginally decreased to R1,8 billion (30 June 2018: R2 billion), buoyed by circa R1 billion of project advance payments, partly offset by acquisitions of R0,8 billion. The order book for continuing operations increased by 55% to R46,8 billion (FY2018: R30,1 billion).


    Capital expenditure for the year under review was R816 million (FY2018: R436 million), predominantly in the Underground Mining platform, of which R774 million (FY2018: R358 million) was for expansion and R42 million (FY2018: R78 million) for replacement.


    The effective taxation rate of 40% (FY2018: 36%) is high, mainly due to withholding tax in foreign jurisdictions, as well as losses incurred in jurisdictions where a deferred tax asset cannot be recognised.




    The board of directors of the Company (“Board”) reconsidered the Company’s dividend policy and decided to maintain a stable annual dividend. This annual dividend will be subject to the Group’s financial position and market circumstances and may be supplemented from time-to-time with a special dividend. Considering the Group’s strong cash position, the Board resolved to increase the gross annual dividend for the year under review to 55 cents per ordinary share (FY2018: 50 cents).







    The Group reported a significantly increased order book and substantial near orders. The order book includes several multi-year contracts. Strong growth has been recorded in the Oil & Gas platform order book and there is opportunity for both the Oil & Gas and Underground Mining platforms to further grow their order books. The lower and declining order book in the Power & Water platform is reflective of the Medupi and Kusile projects nearing completion and prevailing market conditions in South Africa.



    Underground Mining Platform

    The platform delivered an outstanding result in a buoyant market for underground mining services. Revenue increased to R10,9 billion (FY2018: R8,0 billion) and operating profit reached a record R814 million (FY2018: R471 million). The order book increased marginally to R22,8 billion (FY2018: R22,1 billion). As one of the largest underground mining contractors in the world, the platform has significant market share in its targeted mining jurisdictions.

    Oil & Gas Platform

    Revenue decreased to R6,7 billion (FY2018: R8,5 billion) as projects were completed during the year and securing replacement work was delayed. In a competitive market with pressure on margins, the platform recorded an operating loss of R98 million (FY2018: R209 million operating profit). The loss is primarily due to a delay in the progressing and awarding of new projects resulting in insufficient project earnings to cover overhead costs, and losses incurred on two, now largely completed projects. The order book increased significantly to R23,1 billion (FY2018: R6,4 billion). The increase follows the award of several projects in recent months, including Clough’s R18,6 billion share of the Snowy Hydro project. Considering the large and growing order book, the platform is expected to return to profitability in FY2020 and to grow earnings steadily thereafter.

    Power & Water Platform

    Revenue and order book decreased to R2,5 billion (FY2018: R4,8 billion) and R0,9 billion (FY2018: R1,5 billion) respectively. The platform recorded an operating loss of R32 million (FY2018: R134 million operating profit). The loss is due to reducing levels of revenue with limited new project opportunities in South Africa, as well as a loss incurred on a project for Sasol, which is in dispute. Strategically, the platform has taken all the right steps to position it well for the future, but there is a lack of project opportunity in the African power and water sectors. The platform is targeting maintenance contracts from Eskom for its aging fleet of power stations. Furthermore, investment in renewable energy and in new fuel storage terminals should also provide complementary market opportunities.


    Implementation of the New Strategic Future plan gathered momentum in the year, with the Group’s business platforms making headway in consolidating their strategic positions, competitive advantages and growth prospects. A strong, quality order book of R46,8 billion and near orders of R14,4 billion underscores the Board’s confidence that the Group’s strategy is starting to yield the planned outcomes.

    The Group is in a strong cash position and debt is within its targeted range. The Group’s financial position, even after a number of years of subdued profits, is robust and sufficient to fund its organic and acquisitive growth plans.

    The prospects for an improvement in operational performance are encouraging and the Group remains optimistic about the longer-term outlook for natural resources markets.


    *Please note that this media statement contains extracts from the full annual financial results for the year ended 30 June 2019 and should be read in conjunction with the full annual financial results available on

    For further information contact:

    Ed Jardim

    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 21 E 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 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:

    1. Africa:
      1. South Africa, Mozambique, Zambia and Ghana
    2. Australasia:
      1. Australia and South Korea
    3. Europe
      1. Scotland
    4. North America
      1. 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