Troubled Al Mojil halves Q4 net losses

Saudi construction company embarking on recovery plan including asset sales, cutting debt

(Image for illustrative purposes)

(Image for illustrative purposes)

Financially troubled Saudi construction company Mohammed al-Mojil Group halved its fourth-quarter net loss on the year to SR526.1m ($140.29m), it said on Saturday.

The drop in the fourth quarter net loss was due to a decline in provisions the company took against an expected increase in the cost of completing projects by SR140.1m, it said in a statement.

Its fourth-quarter 2011 loss was SR1.18bn.

In November, shareholders in MMG rejected the idea of liquidating the company, which is involved in oil and gas projects, mainly for state oil company Saudi Aramco.

The company's recovery plan includes asset sales, cutting bank debt and absorbing accumulated losses.

In January, MMG said it plans to start legal action to collect dues and claims worth more than SR400m.

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