Middle-east Arab News Opinion | Asharq Al-awsat

Troubled Saudi al-Mojil Group extends losses - ASHARQ AL-AWSAT English Archive
Select Page

RIYADH, (Reuters) – Saudi construction company Mohammed al-Mojil Group, due to hold an emergency meeting on Monday to discuss breaking up, on Saturday reported a third quarter loss of 33.8 million riyals ($9 million) as project revenue faltered.

The contractor said in September its liabilities exceeded its assets and shareholders were left with a deficit of 279.8 million riyals after it ran into problems on some large contracts.

Accumulated losses in September also exceeded 75 percent of MMG’s capital, forcing it to call an emergency meeting to discuss whether the company should be dissolved. Trading in MMG stock was suspended earlier this year.

However, the company said in a statement posted on the website of the Saudi bourse, that its third quarter loss had narrowed from the previous quarter as it reduced spending in a restructuring plan.

The company’s construction of the Manifa natural gas development for Saudi Arabian Oil Co (Aramco) generated a loss of 355.2 million riyals in the first nine months of 2012.

MMG added, in a statement posted on the website of the Saudi bourse, that its cost of borrowing had also risen by 10.9 million riyals.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

More Posts

Follow Me:
FacebookGoogle PlusYouTube