Murray & Roberts Is Expecting Its Order book to reach R80 Billion In Months
Murray & Roberts Is Expecting Its Order book to reach R80 Billion In Months. JSE-listed engineering and construction group Murray & Roberts (M&R) believes its record order book of R60.5 billion at end-December 2020 could grow by about 32% to about R80 billion by end-June 2021. “If you take that off the R60.5 billion, it will leave us with about R45 billion. There is R19 billion in near orders that must still find their way into the order book and all these are sole-source opportunities. So if the stars line up correctly, we could be finding ourselves in the position that we have an order book of around R80 billion by the end of June,” M&R CEO Henry Laas told MoneyWeb.
Marc Ter Mors, global head of equity research at SBG Securities, said it is looking forward to M&R’s prospects. “Assuming there aren’t any hiccups in all the large contracts in the energy, resources and infrastructure division, the growth recovery could be quite exciting.”
“I wouldn’t be surprised that if we are going to see delays in the vaccine rollout, limitations of international flights and people not going back to the office yet fully, that a valuation adjustment may be necessary, but in the bigger scheme of things, that is more than compensated for in the mining and energy platforms.” Laas added
Murray and Roberts Holdings Ltd. is a South African based engineering and mining contractor, located in Johannesburg, South Africa and is listed on the JSE Securities Exchange. Murray & Roberts is South Africa’s leading engineering, contracting and construction services company, with a primary focus on the resources-driven construction markets in industry & mining, oil & gas and power & energy in Africa, Middle East, Southeast Asia, Australasia and North and South America.
“We are quite confident that there will be major investment that will flow into the mining sector, which will present new opportunities for this platform. We do expect that the order book will grow strongly over the next six- to 12-month period as these projects get approval for development,” Laas said.
