South African based engineering and mining contractor Murray and Roberts said today it had lost out on more than R600 million due to the impact of the COVID-19 pandemic on its operations.
The company in a statement said the direct profit impact of this pandemic on projects during the year is estimated at R622 million.
“This negative impact, combined with the impairment of an R80 million vendor loan relating to the sale of Genrec, now in business rescue, the impairment of R63 million relating to goodwill on two Group companies due to market uncertainty, and the impairment of R46 million of uncertified revenue on a claim, created a perfect storm for the Group. Execution challenges on a few projects, also disappointed,” the company said.
However, the group said it had a healthy pipeline of projects. “The Group has a significant, quality order book of R54,2 billion and near orders of R11,4billion, which underscores the Board’s confidence in the Group’s strategy. The project opportunity pipeline includes a significant value of near orders and Category 1 opportunities include four projects which are being negotiated on a sole-source basis, with a combined value of approximately R40 billion.”
