Mohammad Al Mojil net soars over nine months

Mohammad Al mojil has been expanding fast beyond its core specialism of energy-related contracting.

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Mohammad Al Mojil Group said net profit for the nine months of the year more than double against the same period last year, despite a dip in the third quarter against both 2010 and the second quarter.

The civil construction firm, which competes for projects across oil and gas among other areas, said it made SAR 75.2m over the first three quarters, up more than 111% compared to last year.

Third quarter profits dipped 19.3% against last year, down to SAR 10.89m for the period and down a third from the SAR 31.72m posted in the second quarter. Despite a rise in revenue between the third quarters of the two years, up 52% to SAR 672m, costs of revenue rose, according to a breakdown of its financial statement.

Al Mojil is one of the largest construction companies in Saudi Arabia, based in Dammam. The company is aiming to expand its service away from its traditional oil and gas clientele, where the company is a strong player as the only firm licensed to perform live welding on rigs.

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In the last year it has increased its capacity to compete for infrastructure and utilities projects. The value of its total assets has increased to SAR 3.62bn, up 22% from a year ago.

Expansion has been achieved through the organic growth of establishing new offices as well as acquisitions. In January the company said it had entered an agreement with National Holding, a UAE investment vehicle, to set up an office in Abu Dhabi and compete for contracts. Since then it has bought a 20% stake in Saudi Massadr, a water project management company, and in May announced it would pay $12.26m (SAR 46m) for Gulf Elite General Contracting, an MEP and infrastructure contractor.

The company has received “sizeable orders” since the start of the year to boost the value of new contracts to SAR 2.8bn, as at the end of July, according to Global Investment House. The SAR 4.2bn backlog is expected by the bank’s researchers to last until 2014.