Murray & Roberts reports on ‘Recovery Year’

South African contractor Murray & Roberts has announced a +16% increase in operating revenue for the fiscal year ended 30 June 2012, achieving ZAR 35.4 billion (US $4.2 billion), despite continued challenging market conditions.

In what was defined as the group's ‘Recovery Year', the contractor reported strong gains from its construction business in Australasia while its engineering section in Africa also posted gains year-on-year.

The construction Australasia division reported positive gains. Clough, in which Murray & Roberts has a 62% share, increased its revenues by +58% to ZAR 8.5 billion (US$ 1 billion) with an operating profit of ZAR 286 million (US$ 34 million).

The engineering Africa division saw revenues increase +27% to ZAR 5.2 billion (US$ 612 million) with an increase in operating profit to ZAR 200 million (US$ 24 million), compared to a loss of ZAR 51 million (US$ 6 million) in 2011.

The construction Africa and Middle East division saw revenues decline -11% to ZAR 8.1 billion (US$ 955 million) with an operating loss of ZAR 1.3 billion (US$ 153 million). The order book decreased to ZAR 9 billion (US$ 1.06 billion). Looking forward, the group believes the outlook for construction Africa remains positive in the medium to long term.

In the short to medium term, Murray & Roberts reported that engineering Africa will maintain its focus on engineering and construction services in Southern Africa, whilst positioning itself for new opportunities in nuclear and renewable energy, water, minerals and the oil & gas market segments.

Meanwhile, the contractor's construction products Africa division reported a -10% decline in revenue to ZAR 3.7 billion (US$ 435 million) with a marginal increase in operating profit to ZAR 197 million (US$ 23 million).