Murray & Roberts CEO: Here’s how to look at the results

South African construction and engineering firm, Murray & Roberts, recently reported a diluted continuing headline loss per share of 8 cents for the six months ended December, a stark contrast from the 49 cents profit in the previous comparable period. The company attributed its negative results to the prolonged COVID-19 restrictions that impacted its operations globally. Henry Lass, the CEO at Murray & Roberts, sat down with CNBC Africa to discuss the company's performance and future outlook. Lass highlighted that despite the challenges faced during the pandemic, the impact of COVID-19 is gradually reducing, with the Americas and Canada still experiencing disruptions in the mining sector, and South Africa facing travel restrictions that hampered project progress. However, Lass remains optimistic about the company's prospects in the second half of the financial year, expecting a much-improved performance compared to the first half. As countries roll out vaccination programs and aim to return to normalcy, Murray & Roberts is hopeful that the business environment will become more conducive for growth. Lass emphasized that the Americas, particularly the United States, are anticipated to announce significant infrastructure spending, which could benefit the company's mining and energy sectors. The surge in commodity prices has prompted mining companies to increase their investments, presenting opportunities for Murray & Roberts to capitalize on this growth. Despite challenges in securing new infrastructure projects in South Africa, the company's order book has reached a record high of 60.5 billion Rand, with near-term orders valued at 19.9 billion Rand. Lass shared that projects from the order book are expected to start contributing to the bottom line in the second half of the current financial year, with a more substantial impact forecasted for the following year. While addressing a legal dispute over a hospital project in Abu Dhabi, Lass reassured shareholders that the issue is not expected to have a significant impact on cash flows or the income statement. He expressed confidence in resolving the matter and restoring the joint venture account balance. Overall, Murray & Roberts is poised for growth and remains optimistic about its future prospects amidst the ongoing challenges posed by the COVID-19 pandemic.