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Murray & Roberts reports positive results
In its annual results, Murray and Roberts says good results were reported by the underground mining platform, the largest contributor to group earnings in the year. The oil & gas platform maintained earnings and secured significant projects in complementary markets in Australia and Mongolia, thereby increasing its order book to R6,4 billion. Joining CNBC Africa to unpack these numbers further is Henry Laas, CEO, Murray and Roberts.
Wed, 29 Aug 2018 15:40:47 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The underground mining platform emerged as the largest contributor to group earnings, signaling significant growth in the mining sector for Murray & Roberts.
- The company's strategic focus on complementary markets in response to challenges in the oil and gas sector has resulted in securing substantial projects in Australia and Mongolia, enhancing the order book to R6.4 billion.
- Despite ongoing interest from Eton to acquire Murray & Roberts, the board's evaluation range for control stands between 20 and 22 rands per share, presenting shareholders with a decision amidst the current offer of 17 rands per share.
Murray & Roberts, a leading engineering and construction company, recently reported positive annual results, with good performance from its underground mining platform emerging as the largest contributor to group earnings. In a CNBC Africa interview, Henry Laas, the CEO of Murray & Roberts, discussed the key drivers behind the company's profits and the strategies in place to sustain growth. Laas highlighted that the oil and gas, underground mining, and power and water businesses all performed as expected, with significant growth seen in the mining sector. Notably, the absence of losses from the Middle East operations in the prior reporting period had a positive impact on the company's overall results.
Laas emphasized the company's commitment to exit the Middle East business, acknowledging the substantial losses incurred and the need to fulfill remaining project commitments. With a stable order book reflecting a 12 percent increase, Murray & Roberts is optimistic about the future, especially in the mining sector. The company's strategic focus on complementary markets in response to the slowdown in the oil and gas sector has resulted in securing substantial projects in Australia and Mongolia, enhancing the order book to R6.4 billion.
One of the significant developments discussed in the interview was Murray & Roberts' increased stake in the Bombela Concession, a move aimed at strengthening the company's position in the market. Despite challenges like the recent strike affecting operations, Laas remains confident in the long-term prospects of the concession, citing a robust return on investment of approximately 18.5 percent.
The conversation also touched upon the ongoing interest from Eton to acquire Murray & Roberts. While acknowledging Eton's 25.4% stake acquisition in the company, Laas clarified that the current offer of 17 rands per share falls short of the board's evaluation range of 20 to 22 rands for control. As the offer remains open, shareholders are presented with a decision on whether to accept the offer or not, as the company navigates the complexities of the situation.
Looking ahead, Laas expressed confidence in the company's strategic direction and commitment to delivering sustainable growth. Despite external market challenges and potential acquisition developments, Murray & Roberts is focused on leveraging its core strengths in various sectors while exploring new opportunities for expansion and diversification. The company's resilience and adaptability underscore its position as a key player in the engineering and construction industry.
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