MMG loses a further $150m in 2014
Saudi contractor's total losses increase to $771.8m, or over 230% of its share capital
Troubled Saudi Arabian contractor Mohammad Al Mojil Group has announced a net loss of almost $150m (SR560.8m) for 2014, bringing its accumulated losses to $771.8m.
The company, which has endoured a string of bad results over the past four years after a disastrous attempt to move into the market for enginering, procurement and construction (EPC) contracts, said that its losses now represent 231.8% of its share capital.
The Dammam-based company's shares have been suspended from the Saudi Arabian stock exchange for two and-a-half years and it has had three chief executives in three years as it has attempted to restructure debts and seek new capital. The latest CEO, William Milligan, unveiled a recovery plan in October which was based on shrinking its existing share capital by 90% in a bid to offset some of its liabilities before attempting a rights issue to inject new capital into the company.
It has also pursued court cases against a number of contracting groups whom it says owe money for work that has been completed.
In November, new chief operating officer Terry Smith told Construction Week that the company is owed around $129m from Korean contractor SK Engineering & Construction for work carried out at the King Abdullah Petroleum Studies and Research Centre in Riyadh. He argued that if paid, the money would make a big difference to the company's survival prospects.
SK Engineering and Construction's general manager, MoonJeong Yang, said the company had "fulfilled its obligations and has made all payments for properly completed/accepted works carried out by MMG”.
He said that SK Engineering and Construction had reduced MMG's scope of work on the project by agreement, which he said had been down to its poor performance.