* Plans to expand into Middle East, South America, Asia
* Order book stable at 40 billion rand
* Preparing itself for South African nuclear strategy (Adds CEO interview, shares, background)
By Gugulakhe Lourie
JOHANNESBURG, Aug 26 (Reuters) - South Africa's biggest construction firm Murray & Roberts posted a 23 percent rise in full-year diluted headline earnings per share on Wednesday, and said it was eyeing expansion opportunities in the Middle East, South America and Asia.
The firm, which is involved in building Africa's first rapid rail link in South Africa, said diluted headline EPS in the year to end-June rose to 675 cents, above the top-end of its own forecasts of a 15-20 percent rise.
But the company, which is also involved in building stadiums for the 2010 football World Cup in South Africa, said the volatility of the rand against the dollar and other international currencies may impact the translation of its 40 percent international earnings.
Despite being hit by the effects of the global economic crisis, M&R's order book remained stable at 40 billion rand ($5.13 billion) and revenue rose 27 percent to 33.8 billion rand.
Shares in Murray & Roberts closed up 1.60 percent at 47.60 rand, outperforming a 0.36 percent weaker Johannesburg Top-40 index of blue-chip stocks.
"They are good results in the circumstances of the global economic crisis," Brian Bruce, M&R's CEO, said.
Construction continues to be the best-performing sector in South Africa, bolstered by a government infrastructure spending programme and preparations for next year's World Cup. M&R, which also operates in the Middle East and works with miners in Australia and Canada, said it was preparing itself for South Africa's nuclear strategy and was looking for appropriate opportunities for the development of economic infrastructure in the rest of Africa.
Earlier this month, rival Group Five reported that diluted headline earnings per share for the year to end June rose 28 percent to 508 cents, at the top end of its forecast for a 20 to 30 percent rise. Rival WBHO sees full-year headline earnings per share up between 15-25 percent, while Aveng expects to report 20-25 percent decline in full year headline earnings per share.
M&R said on Wednesday it would increase its full-year dividend by 11 percent to 218 cents per share.
The company said its international units had plans to expand their markets in the Middle East, South America and Asia.
Bruce said its Australian oil & gas business Clough was broadening its global footprint in the sector.
During the period, Clough grew its operating profit by 67 percent to 342 million rand.
M&R has options, which mature in November, to increase its stake in Clough by 4 percent to 59 percent.
"At the moment the market price seems a logical choice," said Bruce, but would not comment on whether the company would exercise its options.
Bruce said the company was looking at expanding the market reach of M&R Cementation, which performs underground mining. It currently operates in Africa, North America, Australia and Asia.
Headline EPS is the main profit gauge in South Africa and strips out certain one-off, non-trading and financial items. (Reporting by Gugulakhe Lourie; Editing by Rupert Winchester)