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Johannesburg - Delays to Eskom-related projects and the Gautrain have forced construction firm Murray & Roberts to defer revenue from the ventures in its last financial year.
Reporting figures on Wednesday for the year ended December, in which headline share earnings fell 34% to 200 cents, Murray & Roberts said it would have raised the risk profile of its balance sheet if revenue from the projects had not been excluded.
Eskom's projects have been constantly delayed owing to an array of problems, including leadership questions through to funding. The Gautrain has also had a spotty implementation.
"The directors have considered the potential impact of the above on the performance and prospects of the group and have decided that to increase the level of uncertified revenues will increase the future risk profile of the balance sheet," it said.
However, as of end-December, the group's order book stood at R44bn representing a 10% increase over the average value of orders between April and October.
Revenue for the six months to December 31 2009 was reduced to R16bn, from R17.6bn for the corresponding period of the previous financial year.
Operating profit came in at R918m, which accounted for a revenue deferment of R285m. Underlying operating profit before the revenue deferment was R1.2bn, 17% lower.
An interim dividend of 52c per share was declared, lower than the 85c declared at the interim stage in the 2008 financial year.
Eskom's delay specifically related to the boiler house project at the Medupi power station, while Murray & Roberts has also been working on the first stage of the Gautrain.
"The group and its partners in Bombela have committed to deliver Phase 1 of the Gautrain Project in time for 2010 Fifa World Cup. To enable this, Gauteng Province has agreed to modify the specification and Bombela will fund the additional costs," Murray & Roberts said.
Rand strength against the dollar also affected the group's results, although it was a positive development for Murray & Robert's international operations.
Commenting on its performance, Murray & Roberts said: "The global economic crisis has taken its toll on the group."
- Fin24.com