http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.29Change: -0.09
R/$ = 11.70Change: -0.05
Au 1207.85 $/ozChange: 1.57
Pt 1174.50 $/ozChange: -1.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 29, 2012

M&R wraps up problem contracts, looks to kickstart growth strategy

Back
Construction|Eskom|Gautrain|Mining|Murray|Platinum|PROJECT|Projects|Rosebank|Water|Gautrain|Building|Maintenance|Steel|Gautrain|Gautrain|Henry Laas|Power|Rail|Water
Construction|Eskom|Gautrain|Mining|Platinum|PROJECT|Projects|Water|Gautrain|Building|Maintenance|Steel|Gautrain|Gautrain|Power|Rail|Water
construction|eskom|gautrain-company|mining|murray-company|platinum|project|projects|rosebank|water-company|gautrain-facility|building|maintenance|steel|gautrain-organization|gautrain|henry-laas|power|rail|water
© Reuse this



Construction group Murray & Roberts (M&R) was ready to implement a two-year, board-approved growth programme starting July 1, following the completion of a year-long recovery strategy which saw the resolution of what CEO Henry Laas termed “several challenging projects”.

The group earlier this year reported a R528-million loss for the six months ended December 31.

Laas said in a conference call on Friday that “work was basically complete” on the Australian Gorgon Pioneer Material Offloading Facility project, which he described as a major former cash-drain on the group. M&R was currently demobilising from the site.

A claims resolution process on this project was in progress, and the company was “satisfied with how it was progressing”, he noted.

The final link of the Gautrain project, in Gauteng, had also finally opened, in June, following nine-month-long remedial work to the tunnel owing to water ingress.

However, Laas said there remained a dispute on the interpretation of tunnel water specifications as per the concession agreement with the Gauteng government.

Murray & Roberts formed part of the Bombela consortium responsible for building and operating the rapid-rail link.

Arbitration on the water issue was expected to start in September, said Laas.

As the outcome was uncertain, M&R might still incur further costs on this contract, as the group could be forced to return to the tunnel between Rosebank and Part stations for further remedial work, he added.

Bombela’s larger Gautrain delay and disruption claim against government was continuing, with resolution expected only in 2014.

Issues around Eskom's Medupi power station had also been resolved through an in-principle agreement with the State-owned power utility.

Laas was also pleased that M&R finally had an agreement, again in principle, with a prospective buyer for its remaining steel business, with the company “hopefully” closing the sale before its financial results were announced in August.

More good news was that M&R’s order book remained strong, at more than R50-billion.

MIXED MINING OUTLOOK

Looking at the mining business specifically, Laas was pleased about growth achieved in the South East Asian, Australian and Canadian markets, with the South African platinum sector less of a star performer. A depressed platinum market had already taken casualties, with two major local shafts placed on care and maintenance in recent weeks.

Laas noted that M&R was “making good progress” in diversifying into other mining sectors.

As for the local construction sector, the company boss was hopeful of some recovery in the short to medium term.

He noted that it was still “tough out there”, with margins highly competitive “and low”. He expected, however, that M&R’s construction business would show “a significant improvement” going forward as all major loss-making projects had now been wrapped up.

Laas added that M&R had determined that its earlier provision for possible penalties under the Competition Commission investigation into collusion in the local construction industry had been sufficient, with the commission giving an indication of a fine above the minimum range of the provision, and below the maximum range.

“Hopefully we will reach a settlement soon.”

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Construction News
JSE-listed real estate investment trust (Reit) Growthpoint Properties recorded distribution growth of 7.5% to 84.4c a share in the six months ended December 31.
The Competition Commission on Wednesday referred three cases of alleged collusive tendering against construction company GVK Siyazama to the Competition Tribunal. The commission requested that a maximum penalty of 10% of GVK’s yearly turnover in respect of each...
South Africa’s State-owned railways utility Transnet Freight Rail (TFR) says it remains confident of concluding take-or-pay contracts with 36 coal-line customers before the end of its financial year, which concludes on March 31. Spokesperson Sandile Simelane tells...
More
 
 
Latest News
TSX-listed Oando Energy Resources (OER) announced a $238-million prepayment of certain loan facilities, which it used for the $1.5-billion acquisition of the ConocoPhillips Nigerian Oil & Gas Business in July 2014. The company, which is focused on oil and gas...
More than half CEOs surveyed as part of the latest Merchantec CEO Confidence Index, said load-shedding was negatively impacting businesses, as it lowered productivity and raised costs. The index, released on Wednesday, showed that 76.2% of CEOs felt that...
JSE-listed real estate investment trust (Reit) Growthpoint Properties recorded distribution growth of 7.5% to 84.4c a share in the six months ended December 31.
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
Walter Hill
Eqstra Holdings was going to reduce its exposure to contract mining, but it was not yet ready to sell the troubled business, said CEO Walter Hill on Tuesday. He said Eqstra would not sell its contract mining business in a “depressed market”. He said it would be...
Subscribe to Engineering News and Mining Weekly for two years, but only pay for the first year.  The weekly editions of Engineering News and Mining Weekly will be posted to your preferred postal address and also gain access to:
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96