CAPE TOWN – Murray & Roberts (M&R) said on Monday that its subsidiary Clough USA had been awarded a $620 million (R9.6 billion) petrochemical engineering, procurement and construction (EPC) project in the US.
Clough USA had secured a limited notice to proceed and was expected to receive the full notice to proceed by October 2019, M&R said in a statement. M&R’s share was up 0.33 percent to R12.30 on the JSE at about 12:30pm.
The multiyear project signifies Clough USA’s first major contract award and underlines the successful establishment of Clough in North America.
Clough USA is a subsidiary of Murray & Roberts and was established earlier this year when M&R acquired Saulsbury Industries’ Gulf Coast downstream EPC business.
M&R had an order book of continuing operations of R31.7 billion as at December 28, 2018.
Attributable earnings at the half-year stage were 69 percent up at R186 million, while its balance sheet and cash position were strong, M&R still faces Competiton Tribunal hearings later this year after the Competition Commission recently ruled against a take-over attempt by the Germany-based family-owned ATON.
BUSINESS REPORT ONLINE