M&R expects to add to record R61bn order book over coming year

2nd March 2022 By: Terence Creamer - Creamer Media Editor

M&R expects to add to record R61bn order book over coming year

Photo by: Creamer Media

Engineering and contracting group Murray & Roberts (M&R) reported a strong recovery in earnings for the interim period to December 31, as well as another increase in its order book, which rose to a record R61.1-billion.

The JSE-listed group reported attributable earnings of R55-million and headline earnings a share of 29c, representing a marked improvement on the R167-million attributable loss and 8c a share headline loss reported in the corresponding period of 2021.

Revenue during the period increased to R13.3-billion (R10.8-billion), while earnings before interest and tax from continuing operations rose to R337-million, from R117-million.

The company reported that it was generating revenue from its order book of between R2-billion and R2.5-billion monthly and was maintaining the order book value at record levels through the systematic addition of new project awards.

The current order backlog includes several multiyear contracts and the group is expecting further order-book growth throughout the 2022 calendar year given that its project pipeline includes near orders of R12.8-billion.

CEO Henry Laas expects most of M&R’s immediate revenue and earnings to be generated by its two international business platforms, while the renewable energy sector could provide an opportunity for its South Africa-focused unit over the medium term.

“Murray & Roberts is well positioned to enable and optimise the capital investments that corporations, governments and institutions will need to undertake to support sustainable human development, as the world emerges from the pandemic.

“The group’s order book reflects these pressing global development needs, as well as significant opportunities in international markets,” the company said in a statement to shareholders.