New-look Murray & Roberts upbeat
MINING: GROUP FOCUSES ON THE NATURAL RESOURCES
Despite decline in the share price, chief executive is talking possible acquisitions.
Diane Radley confirmed that the board stands by its own July 2018 valuation of Murray & Roberts at between R20 and R22.
In its first financial year outside of the local construction industry, Murray & Roberts recorded a 2% increase in revenue to R21.8 billion and a 56% increase in diluted headline earnings per share (heps) to 112 cents (for the year 2017: 72 cents).
The gross annual dividend resources market sectors.”
In its results presentation, Murray & Roberts said conditions in the oil and gas market remain challenging, but there are big opportunities thanks to big spend in complementary markets in Australia – the infrastructure spend on the Australian East Coast is expected to be bigger than the liquefied natural gas (LNG) boom of the previous decade. Most opportunities will be in transport and water infrastructure.
The looming LNG supply deficit is expected to materialise in 2020-21, earlier than previously anticipated, with Qatar, the US and Russia expected to expand their production. Until then, however, the market is expected to remain in oversupply, Laas said.
Laas emphasised the need for Murray & Roberts to establish a presence in the US to capitalise on this opportunity and said the group is looking at possible acquisitions in that market.