JSE-listed engineering and construction services group Murray & Roberts (M&R) continues to experience the impact on its projects from measures to contain the spread of Covid-19.
In South Africa, the group is impacted by the extended lockdown period to end-April, and in Australasia and the Americas, a general slowdown in the supply chain and modified work rosters are significantly impacting on project progress.
The group is taking the necessary actions to reduce costs and preserve cash, but still expects a considerable negative impact to earnings for the financial year to June 30.
Some of M&R’s mining-related projects in Australasia continue to operate, although restrictions on the movement of people and revised work rosters are impacting on progress.
In the US and South America, two projects are on care and maintenance, and in Canada about 50% of projects are still operational.
In South Africa, most of M&R’s project sites have been temporarily shut down for the duration of the lockdown, while a site in Zambia has terminated its contract with M&R owing to Covid-19 difficulties.
All of M&R’s project sites related to power and water are shut down during the South African lockdown, other than some maintenance work that continues at the Medupi and Kusile power stations.
All M&R’s oil and gas-related projects in Australasia continue to operate, although modified work rosters and supply chain delays are having an impact on progress. Engineering and procurement services are continuing on the Snowy Hydro project.
In the US, most states have imposed various levels of lockdown measures over the past month. M&R continues with engineering and procurement services on the Next Wave project, in Texas, although procurement delays are being experienced owing to supply chain challenges.