Press Releases

  • Murray & Roberts Announces Full Year Financial Results

    Johannesburg, 26 August 2020 – Murray & Roberts today announced its annual results for the year ended 30 June 2020.


    ·         Significant, quality order book of R54,2 billion (FY2019: R46,8 billion) and near orders of R11,4 billion (FY2019: R14,4 billion).

    ·         Robust cash position:
    o    R1,5 billion of unrestricted cash
    o    R2,8 billion of unutilised credit facilities

    ·         Net asset value of R5,6 billion (R13 per share)

    ·         No fatal incidents and a lost-time injury frequency rate of 0.88 (FY2019: 0.71)


    ·         Financial results:

    o    Results for the year were negatively impacted by:

    §  Estimated COVID-19 impact - R622 million

    §  Vendor loan impairment - R80 million

    §  Goodwill impairment - R63 million

    §  Uncertified revenue impairment - R46 million

    o    Revenue from continuing operations increased marginally to R20,8 billion (FY2019: R20,1 billion)

    o    EBIT loss for continuing operations of R17 million (FY2019: R847 million profit) and attributable loss of R352 million (FY2019: R337 million profit)

    o    Diluted continuing headline loss per share of 88 cents (FY2019: 114 cents profit)

    o    Cash, net of debt, of R0,7 billion (FY2019: R1,8 billion), and after IFRS 16 adjustment net debt of R0,1 billion




    Henry Laas, Murray & Roberts Group Chief Executive, comments: “The expectations for economic recovery after COVID-19 are uncertain and revised frequently. However, the relevance of natural resources – of commodities, utilities, energy and infrastructure – to a post-pandemic world, and the Group’s exposure to these markets, support our view of strong growth in Group earnings, especially after FY2021.”


    In terms of overall financial performance and prior to the impact of COVID-19, the Group was tracking well to meet its guidance of an improved performance in FY2020, relative to the previous reporting period. The direct profit impact of this pandemic on projects during the year is estimated at R622 million. This impact, combined with the impairment of an R80 million vendor loan relating to the sale of Genrec, now in business rescue, the impairment of R63 million relating to goodwill on two Group companies due to market uncertainty, and the impairment of R46 million of uncertified revenue on a claim, created a perfect storm for the Group. Execution challenges on a few projects, also disappointed.

    Revenue from continuing operations marginally increased to R20,8 billion (FY2019: R20,1 billion). The Group reported a loss before interest and tax of R17 million (FY2019: R847 million profit) and an attributable loss of R352 million (FY2019: R337 million profit). A diluted continuing headline loss per share of 88 cents was recorded (FY2019: 114 cents profit).

    Cash, net of debt, before IFRS 16 adjustment, decreased to R0,7 billion (FY2019: R1,8 billion), and after IFRS 16 adjustment, to net debt of R0,1 billion.

    Considering current market conditions, the Group is pleased to report a significant, quality order book of R54,2 billion (FY2019: R46,8 billion), providing a solid basis for improved future performance.



    In terms of the Group’s dividend policy, the board of directors of the Company aims to maintain a stable annual dividend, which may be supplemented from time-to-time with a special dividend. A dividend is subject to the Group’s financial position and market circumstances.


    Considering the market uncertainty brought about by the COVID-19 pandemic, the Board has resolved not to declare a dividend for the period under review, in order to further preserve the Group’s financial position.




    The Group’s New Strategic Future strategy has included the successful disposal of non-core assets in order to focus the Group on the natural resources market sectors, which offer greater long-term fundamentals. During the past three years, the Group broadened its market focus to mitigate market cyclicality, which is typical of natural resources markets.


    This broader market focus includes sectors that present opportunity for growth, diversification and differentiation for each of the business platforms. The resources, industrial, energy, water and specialised infrastructure sectors all form part of the Group’s target market. Accordingly, the business platforms have been renamed to better describe the market sectors in which they are positioned to operate as specialist contractors.


    The Oil & Gas platform has been renamed the Energy, Resources & Infrastructure platform and the Power & Water platform has been renamed the Power, Industrial & Water platform. The Underground Mining platform has been renamed the Mining platform, due to the strategic decision to extend its service offering to the open pit mining market sector.


    The Group’s strategic repositioning will also be better reflected in a change to its classification on the JSE, from Diversified Industrials to the Engineering and Contracting Services subsector, a new subsector to be introduced by FTSE Russell and the enhanced Industry Classification Benchmark, as from September 2020.




    The Group reported a significant, quality order book, which includes several multi-year contracts. The project pipeline includes a significant value of near orders, and Category 1 opportunities include four projects which are 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 approximately R40 billion.



    Energy, Resources & Infrastructure Platform

    Revenue increased marginally to R6,9 billion (FY2019: R6,7 billion) and the platform recorded a disappointing operating loss of R454 million (FY2019: R98 million loss). This loss is reflective of the estimated COVID-19 profit impact of R179 million, a goodwill impairment of R33 million, challenging market conditions which caused a delay in project awards, and losses on two projects. One of the lossmaking projects formed part of the business acquired in the USA in 2019, where project losses far exceeded the warranties provided by the seller. The platform was however successful in securing an increased and strong order book of R34,4 billion (FY2019: R23,1 billion), supporting prospects for a return to profitability in the new financial year.

    Mining Platform

    The platform delivered a commendable result considering the R206 million COVID-19 profit impact. Revenue increased to R12,0 billion (FY2019: R10,9 billion) and operating profit decreased to R630 million (FY2019: R814 million). The order book decreased to R19,4 billion (FY2019: R22,8 billion), but is supported by a strong project pipeline. The Mining platform continued to perform well in the global metals and minerals market. Capital investment in the mining sector, mainly in brownfield expansions, has held up even as concerns of a plateau in investment were exacerbated by the disruption and uncertainty accompanying COVID-19.

    Power, Industrial & Water Platform

    Revenue and order book decreased to R2,0 billion (FY2019: R2,5 billion) and R0,4 billion (FY2019: R0,9 billion) respectively. Given the platform’s relatively low revenue base, goodwill impairment of R29 million, uncertified revenue impairment of R46 million and the COVID-19 profit impact of R43 million, the platform recorded an operating loss of R44 million (FY2019: R32 million loss). No projects of any material value were secured during the year and opportunity for new project awards within the next six-month period is limited, other than in the overland power transmission and distribution sector, where Eskom has tenders under adjudication to an estimated value of R2,5 billion. OptiPower Projects is well positioned to secure a sizable share of this opportunity.


    Despite the uncertainty in the global economic outlook, the Group believes its New Strategic Future strategy, and the assumptions on which it is based, remains sound.

    A significant, quality order book of R54,2 billion and near orders of R11,4 billion, underscores the Board’s confidence in the Group’s strategy. The Group’s financial position is robust and sufficient to fund its growth plans, and debt is within its targeted range.

    In the year ahead, the focus will be on growing the order book, improving project execution, improving liquidity, progressing digitalisation, and exiting the Middle East – which the Board believes will support a return to profitability in FY2021 and a path to earnings growth beyond.

    Any forward-looking information contained in this announcement has not been audited and reported on by the Group’s external auditors.


    *Please note that this media statement contains extracts from the full annual financial results for the year ended 30 June 2020 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