Murray & Roberts announces Interim Financial Results
06 March 2019
MURRAY & ROBERTS HOLDINGS LIMITED
MURRAY & ROBERTS ANNOUNCES INTERIM FINANCIAL RESULTS
Johannesburg, 6 March 2019 – Murray & Roberts today announced its interim results for the six months ended 31 December 2018.
· Financial results:
o Revenue from continuing operations decreased by 17% to R9,8 billion (FY2018 H1: R11,8 billion).
o Diluted continuing HEPS decreased by 2% to 54 cents (FY2018 H1: 55 cents).
o Attributable earnings increased by 69% to R186 million (FY2018 H1: R110 million).
o Cash, net of debt, decreased to R1,0 billion (FY2018 H1: R1,3 billion; FY2018: R2,0 billion).
o Order book for continuing operations increased to R31,7 billion (FY2018 H1: R22,1 billion; FY2018: R30,1 billion).
· Lower contributions from Oil & Gas and Power & Water platforms, partly offset by strong Underground Mining performance. Underground Mining platform order book increased to R25,7 billion (FY2018 H1: R15,3 billion).
· Strong balance sheet and cash position.
· Lost time injury frequency rate (“LTIFR”) improved to 0.63 (FY2018 H1: 1.19). No fatal injuries occurred.
· Independent Board maintains its view that a fair value price range for control is between ZAR20.00 and ZAR22.00 per ordinary share.
FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
Henry Laas, Murray & Roberts Group Chief Executive, comments: “The Group’s three business platforms (Underground Mining, Oil & Gas and Power & Water) provide portfolio diversification. Core market segments and selected complementary market segments are of strategic importance to each of the three platforms, as these segments collectively mitigate the impact of market cyclicality.
Revenue from continuing operations decreased by 17% to R9,8 billion (FY2018 H1: R11,8 billion) and attributable earnings increased by 69% to R186 million (FY2018 H1: R110 million). Diluted continuing headline earnings per share (“HEPS”) decreased by 2% to 54 cents (FY2018 H1: 55 cents). Cash, net of debt, decreased to R1,0 billion (FY2018 H1: R1,3 billion; FY2018: R2,0 billion).
The order book for continuing operations increased to R31,7 billion (FY2018 H1: R22,1 billion; FY2018: R30,1 billion).
In terms of the Group’s dividend policy, the board of directors of the Company (“Board”) will consider a full-year dividend post year-end.
Oil & Gas Platform
Revenue decreased to R3,4 billion (FY2018 H1: R4,7 billion). In a competitive market with high pressure on margins, the platform recorded a break-even in earnings before interest and tax for FY2019 H1 (FY2018 H1: R99 million operating profit). The order book increased to R4,4 billion (FY2018 H1: R3,8 billion).
Underground Mining Platform
This global business is performing extremely well and continues to experience increasing demand for its services. Commodity prices in general have increased and there is a positive change in sentiment towards investment in the industry. Revenue and operating profit increased to R4,9 billion (FY2018 H1: R4,1 billion) and R346 million (FY2018 H1: R239 million) respectively. The platform order book increased to R25,7 billion (FY2018 H1: R15,3 billion), with project awards across all jurisdictions.
Power & Water Platform
Revenue, operating profit and order book decreased to R1,4 billion (FY2018 H1: R2,6 billion), R3 million (FY2018 H1: R51 million) and R1,6 billion (FY2018 H1: R2,7 billion) respectively. The platform has one loss making project which will be completed in FY2019.
The platform’s scope of work on the Medupi power station has been completed and its work on the Kusile power station will continue into FY2020. For several years platform earnings were underpinned by the contribution from these two projects. The lack of meaningful work to replace Medupi and Kusile will result in reduced platform revenue and earnings.
The Group’s investment in the Bombela Concession Company yielded earnings of R114 million (FY2018 H1: R139 million).
The Underground Mining platform is operating in a buoyant market and is well positioned to achieve strong growth over the next few years. The Oil & Gas and Power & Water platforms continue to face challenging market conditions, with low levels of client investment and new projects experiencing delays and deferrals. Globally, the oil and gas market is showing definite signs of recovery. Opportunities are being pursued in selected complementary market segments, which mitigates the impact of down cycles in core market segments.
The Group is committed to drive sustainable growth and remains confident that its growth plans over the medium term are achievable, factoring in the constraints of current market dynamics.
*Please note that this media statement contains extracts from the full reviewed interim financial results for the six months ended 31 December 2018 and should be read in conjunction with the full reviewed interim financial results available on www.murrob.com.
For further information contact:
Group Investor and Media Executive
This announcement includes certain various “forward-looking statements” within the meaning of Section 27A of the US Securities Act 10 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect the current views or expectations of the Board with respect to future events and financial and operational performance. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including, without limitation, those concerning: the Group’s strategy; the economic outlook for the industry; and the Group’s liquidity and capital resources and expenditure. These forward-looking statements speak only as of the date of this announcement and are not based on historical facts, but rather reflect the Group’s current expectations concerning future results and events and generally may be identified by the use of forward-looking words or phrases such as “believe”, “expect”, “anticipate”, “intend”, “should”, “planned”, “may”, “potential” or similar words and phrases. The Group undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this announcement or to reflect the occurrence of any unexpected events. Neither the content of the Group’s website, nor any website accessible by hyperlinks on the Group’s website is incorporated in, or forms part of, this announcement.
About Murray & Roberts
Murray & Roberts is a leading engineering and construction services group of companies.
It has delivered infrastructure projects throughout South and Southern Africa for more than 119 years, and is today recognised as a multinational engineering and construction group.
The Group achieves this by focusing its expertise and capacity on delivering sustainable project engineering, procurement, construction, commissioning, operations and maintenance solutions.
The Group delivers its capabilities into three global primary market sectors: oil & gas; metals & minerals and power & water. The Group disposed of its infrastructure businesses in April 2017 and no longer delivers any civil and building construction projects.
Murray & Roberts is headquartered in Johannesburg, South Africa, and is listed on the JSE Limited. It has offices in:
a. South Africa, Mozambique, Zambia and Ghana
a. Australia and South Korea
4. North America:
a. USA and Canada
Murray & Roberts is a group of world-class companies and brands aligned to the same purpose and vision, and guided by the same set of values.
For more information about Murray & Roberts, please visit www.murrob.com