Saudi Mohammed al-Mojil Group Extends Losses

The troubled Saudi construction company reported a third quarter loss of $9 million.

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 SAR33.8 million ($9 million) as project revenue faltered.

The contractor said in September its liabilities exceeded its assets and shareholders were left with a deficit of SAR279.8 million after it ran into problems on some large contracts.

Accumulated losses in September also exceeded 75 per cent 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 SAR355.2 million 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 SAR10.9 million.