The Saudi construction contractor Mohammad Al Mojil Group (MMG) has announced the resignation of its chief executive officer Ibrahim Zadeh at the company’s headquarters in Dammam after the company’s profits fell by 31% in April from the same period last year.
The governing council of the contractor said in a statement posted on  the Saudi stock exchange Tadawul that the decision to accept his resignation was taken to “increase operational efficiency and improve financial performance.”
The group’s first quarter net profits fell by 31% compared with Q1 2011, from $8.7m down to $6m. The fourth quarter of 2011 also saw MMG make a loss of $275m.
However, the company remains, “confident of its ability to continue its business and obtain new projects and provide the necessary funding in a timely manner to meet its obligations.”
Ibrahim Zadeh will be replaced within three months.
MMG’s share price has also plummeted 45.7% since January, falling from $6.88 to $3.73, reducing the value of shares outstanding in the company from $206.4m to $111.9m.
“Our target should be our clients’ total satisfaction. We should strive to preserve MMG’s reputation and its credibility,” said Sulaiman Al-Hejji, VP at MMG.
Zadeh, a US national, only took control of the company’s affairs from Ibrahim Al Shuweir in November, hired on the basis of his strong track record in bailing out floundering multinational companies in the US, where he is now returning to, according to Arab News.
The governing council additionally appointed Pricewaterhouse Coopers to conduct a review of the company’s performance to raise efficiency and reduce expenses in conjunction with the steering committee, which has been granted power of attorney over the company’s affairs for the duration of the handover phase.
