Murray & Roberts boasts record order book after R22bn contract win

Engineering group Murray & Roberts says its order book has grown to a record R80bn after subsidiary Clough won yet another hefty contract in Australia.  

Clough has won a R22bn share of the development of Perdaman Industries urea plant in Western Australia, the group announced on Friday. Urea is used as a fertiliser, and the scope of work is wide ranging, including construction of the facility, a water treatment plant, a 100MW power plant, and a 7km conveyor system to the Pilbara port.

Murray & Roberts is in a joint venture with multinational group Saipem, and the project is expected to begin in the third quarter, but is still subject to a final investment decision.

“Upon award, this multiyear project will complement the group’s significant order book and extend its secured revenue base into the medium to long term,” the group said.

The specialist engineering group, which started life in 1902 as a builder in the then Cape Colony, has spent the past few years diversifying its businesses to mitigate its exposure to cyclical natural resources contracts.

Its diversification has included its oil and gas business taking hydroelectric projects, or gas to power projects, after being exclusively focused on liquefied natural gas in Australia.

In morning trade on Friday the group’s shares were up 2.23% to R10.54, having fallen by more than a quarter so far in 2022. The shares, however, have more than doubled over the past two years.

Update: May 27 2022
This article has been updated with share price information.

gernetzkyk@businesslive.co.za