M&R ON THE ROAD WITH R2BN DEALS - Roy Cokayne
Wednesday, 16th November 2011
MURRAY & ROBERTS had secured three new contracts worth almost R2bn last month, it said yesterday. The group said M&R CEMENTATION had been awarded a contract worth around R1.3bn by NORTHAM PLATINUM to sink and equip two sets of decline shafts at its booysendal north UG2 mine. M&R CE HENRY LAAS said the firm's global underground mining operating platform continued to perform well due to strong global demand for commodities and this business was well positioned for continued growth. M&R's CONCOR MINING, in a JV with BASIL READ, was awarded a contract worth around R722m by ASSMANG IRON ORE for mining of iron ore at its Beeshoek open cast mine in the Northern Cape. The contract was commenced at the start of this month and set for completion in Jun. 2014. SANRAL awarded a two-year contract worth R143m to CONCOR ROADS & EARTHWORKS for the rehabilitation of the N1 on section 8 between Nelspoort and Three Sisters. LAAS said all the contracts were important wins for the group and testament to the quality of its work.
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M&R STRETCHES LOSS ON AUSTRALIAN PROJECT BY R520M - Roy Cokayne
Monday, 24th October 2011
The expected estimated loss by MURRAY & ROBERTS on completion of the GORGON PIONEER materials offloading facility (GPMOF) in Australia has increased to R1.1bn. M&R on Friday said the forecast loss at completion had risen by R520m. This was over and above the estimated contract completion costs of R582m for the facility accounted for at end-Jun. A geotechnical analysis was under way to establish the extent of the geological issues on the project. M&R attributed the higher losses to piling works that were progressing slower than anticipated due to adverse weather, productivity and geological issues. The project was seen to be completed towards the end of Q3 of the current financial year, about three months behind schedule. In SA, M&R said early signs of a recovery in the construction economy were showing, although it was still weak and depressed. Its order book remained strong at R56bn, marginally higher than the R55bn reported in June.
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MURRAY & ROBERTS: CHIEF'S PAY DOUBLES DESPITE BIG LOSS - Bloomberg
Friday, 30th September 2011
MURRAY & ROBERTS more than doubled former CE BRIAN BRUCE's pay for the year to June, despite the company posting a loss. BRUCE earned R10.2m in the year, including a base salary of R4.85m and a R4.85m guaranteed contract payment. BRUCE was paid R4.9m the year before. Former financial director ROGER REES received a 52% hike to R7.7m. M&R posted a net loss of R1.74bn for the year to end-Jun. 2011, compared with a R1.1bn profit y/y. It halted dividend payments, citing its "liquidity position".
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M&R, ASSMANG: SOLIDARITY SIGNS PAY AGREEMENTS - Sapa
Thursday, 15th September 2011
Solidarity had clinched wage agreements with three companies, the union said yesterday. A third round of wage talks was concluded at MURRAY & ROBERTS CEMENTATION with a two-year wage pact, including an increase of 7.5% for 2011 and 8% for 2012. The union and ASSMANG signed a three-year deal last week, with 8% increases each year. Solidarity said a two-year wage agreement would soon be signed with VILLAGE MAIN REEF's Tau Lekoa gold mine.
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M&R SINKS INTO FULL-YEAR LOSS - Reuters
Thursday, 1st September 2011
MURRAY & ROBERTS yesterday said it has sunk into a FY loss as it made provision for contract completion costs and possible regulatory penalties. The group reported a diluted HLPS of 503cps from HEPS of 340cps y/y. M&R made an operating loss of R678m after making provision for possible penalties by competition authorities for possible transgressions. Its board accounted for changes and contract completion costs in earnings, including R1.15bn for construction in the southern African region and added costs related to the Gautrain. Revenue from continuing operations rose 10% to R30.5bn.
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M&R BRACES FOR ANTITRUST PENALTIES - Reuters
Monday, 22nd August 2011
MURRAY & ROBERTS on Friday said it would post a diluted FY HLPS of 380c-420c, and that it was making provision for possible penalties from the Competition Commission. The company said it was positioned to return to profitability and growth in earnings, despite subdued construction markets in southern Africa and the Middle East. M&R said it was making provision for Competition Commission penalties for identified possible transgressions by former subsidiary company executives on contract. The board also opted to account for charges and contract completion costs in the earnings, including R1.15bn for construction in the southern African region as well as additional costs to the Gautrain project. M&R said it expected to revert back to a net debt position due to funding required to complete the Gautrain project.
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M&R UNIT TO SELL MARINE BUSINESS TO SAPURACREST - Reuters
Monday, 8th August 2011
MURRAY & ROBERTS unit CLOUGH LTD will sell its offshore marine construction business to Malaysia's SAPURACREST PETROLEUM for A$127m in a bid to focus on its mainstay onshore projects, the firm said today. CLOUGH will use the funds to pay down debt and fund growth, M&R said. The construction firm said the deal will allow CLOUGH to focus on opportunities in onshore oil and gas projects as well as the minerals markets in Australia. The deal still requires the approval of the Malaysian central bank and SAPURACREST's shareholders.
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M&R MERGES WITH CONCOR FOR GROWTH - Roy Cokayne
Thursday, 7th July 2011
MURRAY & ROBERTS and CONCOR have merged to form a combined entity with a combined annual turnover of R6.5bn. The merger of the two companies, now called MURRAY & ROBERTS CONSTRUCTION, was effective from the beginning of July. NIGEL HARVEY has been appointed chairman of the merged entity and will assume executive responsibility for the new structure. The company sees acquisitions as an area of growth, and will particularly focus at expanding its roads and civils capacities in the Western and Eastern Cape. MURRAY & ROBERTS stock fell 0.8% on the JSE to close at R29.98 yesterday.
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M&R SURGES ON DISPUTE SETTLEMENTS - Reuters
Thursday, 30th June 2011
MURRAY & ROBERTS yesterday announced it had reached agreements on several contract disputes that would improve cash flow and debt. The company also warned it would fall to a FY loss, citing exceptional charges and a loss on discontinued projects. Investors chose to overlook the earnings warning and focused on the improvements in the balance sheet, sending shares 4.2% higher to R29 in afternoon trade. M&R said it had reached a settlement with Japan's HITACHI over costs related to subcontract work. It had also reached an agreement with ESKOM that resolves "cash flow challenges" at its Medupi civil works contract. M&R said its net debt would be reduced by "several hundreds of millions " of rand from the R1.1bn it held at end-Dec. HEPS from continuing operations would be more than 20% lower y/y. Results will be released on Aug. 31.
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MEDUPI DISPUTE 'HINGES ON LACK OF SPECIAL SKILLS' - Roy Cokayne
Friday, 13th May 2011
The shortage of specialised skills among construction workers, and a lack of continuity of large projects have been blamed for causing protests over foreign workers at the Medupi construction site this week. Protests by 500 workers at Medupi this week resulted in some vehicles being damaged and ESKOM restricting access to the site. SA Federation of Civil Engineering Construction senior economist HENK LANGENHOVEN yesterday said protests about foreign workers had happened on other projects too, and the problem with local supply of skilled workers had been exacerbated by the huge demand for these skills. LANGEHNOVEN said there were only two solutions to the shortage of skills - to import the skills or replenish the skills pipeline. The latter could not be done in the short term. MURRAY & ROBERTS spokesman ED JARDIM said the group had various international and local specialist artisans working on the Medupi site. M&R had embarked on a programme to allow local artisans to go through a training process to learn special skills, but only a few had passed and the company was forced to supplement them with specialist foreign skills.
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