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FINANCIAL NEWS
Saudi MMG reports USD9m loss, calls for emergency meeting
04 Nov 2012
(MENAFN) Saudi contractor firm Mohammed al-Mojil Group (MMG) reported a quarterly loss on weaker project income, Reuters reported.
The company said it booked USD9 million net loss during the third quarter. However this was narrower than the second quarter loss, as it reduced spending in a restructuring plan, MMG added.
The company’s construction of the Manifa natural gas development for Saudi Arabian Oil Company (Aramco) resulted in USD94.6 million lossduring the first nine months of 2012.
The company added that its cost of borrowing had also risen by USD2.9 million in the period.
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.
The contractor said in September its liabilities exceeded its assets and shareholders were left with a deficit of USD74.5 million, as it faced difficulties with some large contracts.
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