http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.59Change: -0.06
R/$ = 10.56Change: -0.04
Au 1302.30 $/ozChange: -1.65
Pt 1438.00 $/ozChange: -6.50
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements 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
Eskom|Gautrain|Murray|Rosebank|Gautrain|Construction|Steel|Gautrain|Gautrain|Henry Laas
eskom|gautrain-company|murray-company|rosebank|gautrain-facility|construction-industry-term|steel|gautrain-organization|gautrain|henry-laas
© 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
 
 
 
 
 
 
 
 
Other Property Developments News
JSE-listed real estate investment trust (REIT) Fountainhead Property Trust on Thursday declared an interim distribution of 29c/unit for the six-month period to February 28, representing distribution growth of 11% from the first half of the prior fiscal year. The...
Article contains comments
The board of civil society organisation watchdog Corruption Watch (CW)  has called on the President and Cabinet to assume collective responsibility for the misuse of public funds in the upgrade of President Jacob Zuma’s private home in Nkandla. CW chairperson...
Article contains comments
More
 
 
Latest News
Updated 3 hours ago The City of Cape Town has entered into eight third-party service provider agreements licensing the take up of the spare infrastructure capacity generated through the city’s broadband network. Lease-agreement negotiations were progressing with another 20 third-party...
Updated 4 hours ago A 344.5 t wax reactor has arrived at petrochemicals giant Sasol’s Fisher-Tropsch wax expansion project, in Sasolsburg, in the Free State, after five weeks of road travel from Richards Bay, in KwaZulu-Natal. The reactor was transported through Pongola, in...
DoE promotional material
Updated 4 hours ago South African nonprofit environmental organisation Project 90 by 2030 has filed a complaint with the Advertising Standards Authority (ASA) of South Africa against the Department of Energy’s (DoE’s) recent promotion of nuclear energy. The complaint, in which the...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
There is enough water in South Africa to supply communities and the economy, even if some activities may be constrained, such as agriculture in the Limpopo, says National Planning Commission commissioner Mike Muller. 
Muller was also the director-general from 1997...
South African antenna designer and producer Poynting and provider of professional products, system integration and implementation and commissioning services for the broadcast and telecommunications markets in South Africa, African Union Communications (Aucom),...
Industrial automation giant Festo has been displaying some of the its ongoing research projects and latest automation developments and products at the Hannover industrial fair from April 7 to 11, as part of its Integrated Automation – The Next Steps theme. The...
South African retail companies are responding to the way in which e-commerce is changing their engagement model with customers by improving customer engagement channels and order fulfilment intelligence, says industrial and retail software company JDA Europe, Middle...
In support of the South African government’s mandate to create more jobs and promote sustainable development, multilevel marketing company Amway’ business model aims to assist government in easing the startup of business and encourage an entrepreneurial mindset...
 
 
 
 
 
 
 
 
 
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