Mohammad Al Mojil and Daelim link for $68.2m work
Saudi contractor to supply to western region; launches training school
Mohammad Al Mojil Group, the civil engineering contractor, has signed a letter of intent with Korea’s Daelim Saudi Arabia to carry out mechanical and electrical work on projects in the western region.
The deal is worth SAR256 million and will see the Saudi firm provide labour and equipment, it told the Tadawul stock exchange yesterday.
The contractor - which covers oil and non-oil sectors including marine, industrial and fabrication - signed a partnership agreement yesterday with Oman’s National Training Institute to establish the Saudi Institute for Advanced Training, a training and development centre for workers in oil, gas and petrochemical.
The Saudi contractor will own 51% of the venture, which will be based in Dammam.
Mohammad Al Mojil is attempting an aggressive expansion policy outside of its home market, with the energy and civil-related projects in Abu Dhabi key targets. It was the first Saudi company to offer a fully serviced fleet of vessels with equipment and manpower to service Saudi Aramco's offshore projects.
On 3rd January the company said it signed a SAR197 million contract with South Korea's Hyundai Engineering and Construction Company to build an engine oil factory in the UAE capital, with construction starting next month and run for 22 months.
However, the company posted a net loss of SAR179.5 million for 2010, compared to net profit of SAR 40.33 million in 2009. The company has a market capitalisation of SAR2.187 billion. Its shares rose 4.16% yesterday to close at SAR 17.5, recovering from a sharp dip from SAR 19.9 on the day it announced the engine oil factory deal.
Meanwhile, Al Babtain Power & Telecommunication, the infrastructure provider to power projects and electricity networks, said Bank Venture Capital would invest US$7.5 million in the company’s $10 million investment in Qatar Engineering & Construction (QCON).
The acquisition, originally highlighted by CW in December, will see Al Babtain buy 9.3% in the contractor through a fund set up by Venture Capital. QCON, formally known as MECON, is a Doha-based EPC contractor that also works on pre- commissioning and start-up services and maintenance work.