MMG Announces Its Interim Consolidated Financial Results for the Period Ended March 31, 2013 (Three Months)
Mohammad Al-Mojil Group Company "MMG" announces its interim consolidated financial results for the period ended March 31, 2013:
1. Net loss for the first quarter amounted to SAR (63.6) million, compared to SAR (99.3) million- after restatement- for the same quarter last year, which represents a decrease of 36%. And compared to a net loss of SAR (650.8) million for the previous quarter, which represents a decrease in net loss of 90.2%.
2. Gross loss for the first quarter amounted to SAR (88.4) million, compared to a gross profit of SAR 60.4 million for the same quarter last year,
3. Loss from operations for the first quarter amounted to SAR (62.2) million, compared to SAR (89.9) million – after restatement- for the same quarter last year; which represents a decrease of 30.8%.
4. Loss per share during the first quarter amounted to SAR (0.51) compared to SAR (0.79)- after restatement for the same period last year.
5. The reasons for the decline in net loss in the current quarter compared to the same quarter last are as follows: The decline in net provisions made against the impairment of accounts and retention receivable and unbilled revenues by SAR 184.8 million, due to the less need to make the same level of provisions in this quarter as compared to the same quarter last year. A prior year/period adjustment of SAR 121.8 million was made to the results of the same quarter last year, by recognizing impairment in accounts and retention receivable and unbilled revenues.
6. The reasons for the decline in losses of the current quarter compared to the previous quarter are as follows:• The increase in revenues by SAR 217.1, this has been resulted from improvement in productivity and availability of working capital requirements. • The decline in net provisions made against the anticipated increase in projects cost of SAR 95.4 million, due to the less need to make the same level of provisions in this quarter as compared to the previous quarter this has been resulted from improvement in productivity. • Recognizing a loss from impairment of assets of SAR (120.2) million during the previous quarter, compared to nil in the current quarter. • The decline in net provisions made against the impairment of accounts and retention receivable and unbilled revenues by SAR 245.5 million, due to the less need to make the same level of provisions in this quarter as compared to the same quarter last year and availability of working capital requirements.
7. The external auditors’ review report included the following:
Basis for Disclaimer Conclusion
Going concern assumption
As described in Note 2(e), the condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that the Company will continue to operate into the foreseeable future. The Company has experienced a loss for the period amounting to SR63.6 million and has accumulated losses as at March 31, 2013 amounting to SR 2,293.3 million, which exceeds 75% of the Company’s capital. In addition, the current liabilities exceed its current assets by SR 1,533.4 million. As a result the Company has a total shareholders' deficit of SR 1,043.3 million as at March 31, 2013. In addition the Company’s shares have been suspended from trading on the Tadawul.
The continuation of the Company’s operations is dependent on the support from the lenders and discussions are currently being held with its banks regarding the appropriate solution to a restructuring of the Company. The continuity of the Company is also dependent on its ability to secure profitable future contracts, successful disposal of assets, increased focus on claims recovery, cost reductions and the acceleration of receivables recovery.
These conditions, along with other matters as set forth in Note 2(e), indicate the existence of multiple material uncertainties that casts significant doubt about the Company’s ability to continue as a going concern. The accompanying interim condensed financial statements do not include any adjustments that may be necessary as a result of these uncertainties.
Disclaimer of Conclusion
Because of the significance of the matters described in the Basis for Disclaimer Conclusion paragraphs above, we do not express a conclusion on the condensed consolidated interim financial statements.
8. Certain reclassifications have been made to prior period balances to be consistent with the current period presentations.
9. Despite the challenging trading conditions, the company’s has generated positive cash flow results as follows:
• Net cash used in operating activities was SAR 51.1 million for the current quarter compared to SAR 248.5 million in same period of last year. This represents an improvement by SAR 197.4 million as a result of the restructuring of the company’s operations and tighter controls on projects.
• Net cash generated from investing activities was SAR 40.9 million for the current quarter compared to net cash used in investing activities of SAR 57.9 million in the same period of last year. This represents an improvement by SAR 98.8 million as a result of improved controls, optimal allocation of resources and achieving targets of the recovery plan by sale of certain non-core assets. The company remains on plan to dispose of the noncore assets as explained in the AGM in Q4 last year.
• Net cash used to repay bank financing was SAR 13 million for current quarter compared to net use of additional bank loans of SAR 98.3 million for the same period of last year. This represents an improvement by SAR 111.3 million as the company has successfully relied on internal resources to fund its operations and initiated repayment of bank loans.
The company has also made significant progress in removing further risks associated with the completion of its remaining Fixed price contracts which has required less provisions to be taken during Q1 2013 than has been seen in previous quarterly results over the past year.
The company has taken steps to recover money due from customers on completed projects either through agreed settlement or where necessary arbitration. The company has now actively entered arbitration with both PSA 2000 and Petrofac for the recovery of moneys due from these customers. The company continues to work to recover funds due which exceed 1.3Bn Sr.
Added on: 4/23/2013
MMG Achieves 5 Million Safe Man-Hours
Mohammad Al-Mojil Group (MMG) celebrated the achievement of 5 million man-hours without lost time injury at its Saudi Aramco’s Wasit SK project on Sunday, December 30, 2012. During the last two months, MMG has received 6 serialized Saudi Aramco/clients HSE achievement awards at different MMG Projects, which is a significant record in itself. The President and CEO, Stewart Macphail, appreciating this commendable feat congratulated all Project Managers/Construction and HSE Managers, for their leadership, as well as all workers for effectively complying with safety rules and procedures in an appropriate manner. This award is continuation of MMG’s legacy of unblemished safety record. The CEO hoped that the staff will continue their effort to realize the ultimate goal of zero incident or accident. Shamim Ahmad, Corporate Safety and LPD Manager, said that this achievement is result of joint effort of all the employees at the project as well as support staff. He said the Loss Prevention Department was very proud of the employees who are displaying an excellent example of safe work practices.
Added on: 1/1/2012
MMG Bags Award for 2 Million Safe Man-Hours
Mohammad Al-Mojil Group has achieved 2 Million Man hours without lost time injury at LURGI APSA Project. YASREF Management recently presented the distinctive Silver Banner Award for this major achievement. Shamim Ahmad, MMG’s Corporate Safety and LPD Manager, said that this major achievement was result of joint efforts and collective determination of all those involved in the project irrespective of their position and ranks.. He lauded excellent team work of all MMG/LURGI employees in displaying safe practices and behavior. Recently the Third Party Yearly Assessment Audit (ISO 9001:2008-QMS) of Quality Management System (QMS) was also successfully completed by ABS, MMG’s Certification Authority by Surveillance Audit. The audit covered Dammam Process Office System, Steel Factory and Construction project—Wasit Industrial Support Facility (ISF) and Wasit Inlet Gas Processing facilities (Package-1)- process compliance with Interface Departments as well as ISO-9001:2008 requirements. After the review by ABS, MMG has been recommended to continue with its certification of ISO 9001:2008 subject to annual verification of Steel Factory and Construction Division. MMG President and CEO Stewart Macphail said that 2 million man-hours achievement without lost time injury and successful completion of MMG’s Quality Management System Audit were reminders of MMG’s true identity and its total commitment to safety and quality of its projects. He said such awards set a new bench mark for the company. He congratulated all the employees involved in Lurgi project along with support staff as well as QA/QC staff for their exemplary effort in enhancing the image and credibility of the company. “We are back on track and we assure our clients and other stakeholders that MMG will regain its status of one of the top industrial construction company in the region which always exceeded the expectations of its clients, without compromising on quality and safety,” the CEO said.
Added on: 12/12/2012
Annual ISO Audit Successfully Completed
The Third Party Yearly Assessment Audit (ISO 9001:2008-QMS) of MMG Quality Management System (QMS) has been successfully completed by ABS, MMG’s Certification Authority by Surveillance Audit, according to Debashish Tapadar, Deputy Corporate Manager of QA/QC and Lead Auditor of MMG. The audit covered Dammam Process Office System, Steel Factory and Construction project—Wasit Industrial Support Facility (ISF) and Wasit Inlet Gas Processing facilities (Package-1)- process compliance with Interface Departments as well as ISO-9001:2008 requirements. After the review by ABS, MMG has been recommended to continue with its certification of ISO 9001:2008 subject to annual verification of Steel Factory and Construction Division. MMG President and CEO, Stewart Macphail Congratulated all the employees in general and QA/QC staff in particular for their excellent effort and hoped that every staff member will continue to contribute in maintaining the high standard of MMG in every field and retain its reputation and credibility in the market.
Added on: 12/4/2012
MMG’s EGM Votes for Business Continuation; New Board Constituted
An Extraordinary General Assembly meeting of Mohammad Al-Mojil Group (MMG) was held Monday, November 5, 2012 at its head office in Dammam in which the shareholders approved the continuity of the company and delegated all authority to the Board of Directors to take all necessary measures in this regard. The General Assembly rejected the proposal for the liquidation of the company. It approved all measures and actions taken by the board of directors from the end of its term to the date of the Extraordinary General Meeting. The Extraordinary General Meeting also approved the new Board of Directors for the term of three years. The new board consisted of Adel Al-Mojil, Younus Al-Aiderous, Fahad Al-Raqtan, Ghunaim Al-Ghunaim, Saad Al-Sabti, Osama As’ad and Stewart Macphail. Saad Al-Sabti later resigned from the board due to exceptional circumstances since he signed a new partnership agreement which necessitated him to withdraw from the membership of all boards and committees. The Company also presented the recovery plan to the shareholders, which included reducing the risk profile of projects; collection of entitlements; sale of certain non-core assets; less reliance on bank borrowing by improving the utilization of operational cash flows; stricter controls of operational and capital expenses; and the corrective steps being considered by the board to reduce the shareholders equity deficit. The board will provide details to the relevant authorities for their approval and then will call for a new Extraordinary General Assembly meeting to seek shareholders’ approval.
Added on: 12/1/2012
TSD Bags SHARQ Award
The Technical Services Division of Mohammad Al-Mojil Group (MMG) was honored by SHARQ Management, an affiliate of SABIC for its performance and contribution in the successful completion of 1 &2 PE Turnaround Maintenance 2012. At a function held on June 04, 2012, at SHARQ Beach Camp in Jubail Industrial City, SHARQ felicitated MMG’s TSD for its contribution and support in the task. Vijay Shankar, TSD Senior Manager, said that his division took up the most complicated and challenging Scope of “Venturi Replacement in Reactor Platform”, yet managed to successfully complete the job ahead of schedule, with full compliance in Quality and Safety -“zero” near miss. It is second time that TSD has achieved award from SABIC. In 2010 it bagged the Best Contractor of the year Award from United. Shankar expressed his thanks to the management for their faith and support as well as all other departments and their core team members for their untiring efforts in the project.
Added on: 6/9/2012
MMG Announces Addition of 3 More Vessels to its Fleet
Mohammad Al-Mojil Group (MMG) has announced on April 4, 2012 that in a follow up to its announcement on December 01, 2011, the delivery of its three state-of-the-art vessels for its fleet in the Marine Services Department has been completed.
Out of the three vessels, two are from future generation with a length of 54 meters. The third one is a crew vessel which has developed and operational capabilities and a capacity that could hold up to 70 passengers. All the three vessels after procuring the required permissions have become operational to serve Saudi Aramco to provide marine support services to its floating oil and gas platforms as per the five-year contract MMG has signed with Saudi Aramco in December 2011.
MMG President and CEO Ebrahim Zadeh said that addition of these three vessels in the fleet is a major step forward in executing MMG plans to improvise and enhance its marine operations by upgrading its fleet in order to meet the expected increase in demand in the shipping and marine sector. He hoped that upgrading of its fleet will strengthen the confidence of MMG's clients, particularly Saudi Aramco. Zadeh reiterated MMG's commitment to continuously improve its marine services in order to exceed the demands of the clients with better quality and high safety standards for which MMG is best known.
Added on: 4/8/2012
MMG Felicitated for High Safety Standards
Mohammad Al-Mojil Group (MMG) has been commended by its clients for its high safety standards. In the past two weeks it has achieved three major milestones in different projects. The company achieved 20 Million Man hours without loss time injury at its projects in Manifa. A function was hosted at the SAIPEM camp in Manifa recently to celebrate the achievement and felicitate the staff members who contributed in reaching this target.
At Manifa COGEN project MMG achieved its second milestone with 7 million safe man hours without lost time injury. The Loss Prevention Department (LPD) on behalf of the project management team congratulated all the employees for their excellent team work, commitment and contribution in achieving this milestone.
MMG was again presented with a Safety Achievement Award On Tuesday, March 20, 2012 by Petrofac / Saudi Aramco for its contribution toward achieving 8 Million Man-hours without any loss time injury. President and CEO Ebrahim Zadeh expressed his delight over the efforts of all the employees in maintaining high safety standards and said that such achievements were reflection of MMG’s commitment to Health, Safety and Environment.
The President hoped that the good work will continue in order to enhance MMG’s credibility and exceed the demands of the clients.
Added on: 3/27/2012
MMG Makes Headway in Ongoing Projects
MMG is making big headway in its recently acquired projects and the general report from various sites are extremely encouraging instilling confidence among the clients that the projects would be very much on schedule with total focus on safety and quality.
Added on: 9/28/2011
MMG Signs SR746 M. Contract With SK E&C Co.
Mohammad Al-Mojil Group (MMG) has signed a letter of intent for the award of the Wasit Gas Development Project worth SAR 746.2 Million with SK Engineering & Construction Co. The contract includes electrical, mechanical and civil works, procurement of bulk materials, manpower and construction equipment supply, management and supervision. The work shall start June 2011 and should be completed no later than March 30, 2014.
Added on: 6/8/2011
SR 183.75 M. Contract Signed With ALAR
Mohammad Al-Mojil Group (MMG) has signed a new letter of intent worth SR183.75 million with ALAR LLC for the General Construction Works for Hydrogen generation unit that will supply Hydrogen to the Yanbu Export Refinery Project. As per the contract the work will include Mechanical, electrical and civil works manpower supply, management and supervision. The work on the project will begin in September this year and will continue for the next 23 months until the mechanical work is completed.
Added on: 5/31/2011
MMG Takes Over Gulf Elite
Mohammad Al-Mojil Group (MMG) has acquired Gulf Elite Company for General Contracting for SR 46 million. Gulf Elite, a limited liability Company, based in Dammam has over 30 years experience in the field of contracting and execution of electro-mechanical works. It also possesses extensive experience in the construction of roads and water treatment facilities as well as other civil works. Gulf Elite will, hence, represent a major operations arm of MMG in civil projects and infrastructure. The acquisition of Gulf Elite Contracting will give an impetus to its diversification program of MMG and enhance its activity in civil projects as well as in infrastructure.
Added on: 5/25/2011
MMG Bags 2 Aramco contracts worth SR636 Million
Mohammad Al-Mojil Group has bagged contract for two major projects worth SAR636 million from Saudi Arabian Oil Company (Saudi Aramco). Both the projects are related to the construction of facilities at Shaybah Residential and Industrial Complex and the Shaybah Industrial Support Facilities, located at Shaybah. The projects are expected to be completed in 25 and 36 months respectively, according to MMG sources in Dammam. Early this year, MMG had signed two other separate contracts with Saudi Aramco whose cumulative worth was SR1.031 billion. The first contract worth of SR 220 million was to design, procure construct, and commission Industrial Support Facilities for the Wasit Gas Plant in the Eastern Province of Saudi Arabia. The second contract was worth SR811 million to procure and build Saudi Aramco’s YERP Interconnecting Systems Package (SP-6) in Yanbu.
Added on: 5/14/2011
MMG Signs With Saudi Aramco 2 Contracts Worth SR1.031 billion
Mohammad Al-Mojil Group has signed two separate contracts with Saudi Aramco whose cumulative worth is SR1.031 billion . The first contract worth of SR 220 million is to design, procure construct, and commission Industrial Support Facilities for the Wasit Gas Plant in the Eastern Province of Saudi Arabia.
The second contract that MMG has signed with Saudi Aramco is worth SR811 million to procure and build Saudi Aramco’s YERP Interconnecting Systems Package (SP-6) in Yanbu. The scope of work for the second contract will include procurement, manpower supply, management and supervision, civil work, electrical, mechanical and instrumentation tasks. TheYERP project will commence immediately and is scheduled to complete in 2014.
Added on: 3/16/2011
SABIC Honors MMG-TSD
Jubail United Petrochemical Company, an affiliate of Saudi Basic Industries Corporation (Sabic), felicitated Mohammad Al-Mojil Group’s Technical Services Division for its excellent performance during the shut down in 2010.
Yousef Al-Zamil, chairman of the board of directors of the United presented the award winning trophy to MMG President and CEO Ibrahim S. Al-Shuweir at a function held recently which was attended by the executives both from MMG and the United. Abdulkarim Al-Yusuf, vice president, was also present at the function
TSD General Manager Khalid M. Munaiser said it was a proud moment and manifestation of MMG’s commitment and dedication to its clients. He said that such honors and awards were reflection of excellent team spirit and commitment of MMG staff. Recently TSD of MMG has also received award from Saudi Aramco for its excellence in services.
Added on: 3/15/2011
SR256 Million Contract with Daelim Signed
Mohammad Al-Mojil Group has signed on January 23, 2011, a letter of intent with Daelim Saudi Arabia worth SR256 million to execute electrical and mechanical work in project in the Western region of the Kingdom. MMG will also provide manpower and equipment to the project.
Meanwhile, MMG has recently also signed a joint venture agreement with National Training Institute of Muscat, Oman, to set up Saudi Institute for Advanced Training & Development Service. The joint venture will offer vocational training and educational services in the Kingdom. MMG will own 51 percent share in the joint venture, while National Training Institute 49 percent.
MMG’s partner National Training Institute (NTI), an affiliate of the renowned Renaissance Group from Oman, is a reputed Training and Educational Services provider and an acknowledged market leader in the field of training for employment solutions, besides imparting vital training in Health, Safety & Environment (HSE), Information Technology (IT) and Executive & Management Development Programs in Oman. NTI’s core strength lies in offering vocational training programs for corporate clients, especially in the Oil & Gas and Petrochemical, Manufacturing and Construction sectors.
The new joint venture company, which will be based in Dammam, will explore the vocational and technical training business opportunities in Saudi Arabia. It will focus initially on short and medium-term training programs covering vocational and technical, Health, Safety & Environment (HSE) and clients’ specific need-based training programs in the oil, gas and petrochemical, industrial, manufacturing, construction, defense and security, and offshore oil & gas sectors. In its next phase, the joint venture will undertake training programs in information technology, management and business skills development, financial studies and language training.
Added on: 1/30/2011
Joint Venture With UAE Company
Mohammad Al-Mojil Group signed an agreement on January 25, 2011 in Abu Dhabi with the National Holding Company to set up a joint venture with a paid up capital of 40 million UAE Dirhams. The new company with limited liability will be called National Holding & Al-Mojil Company and headquartered in Abu Dhabi.
The National Holding Company will own 51 percent share, while MMG 49 percent. The joint venture will offer industrial construction services in the field of oil & gas, petrochemicals, energy and water in the UAE. All the operations of MMG’s Abu Dhabi branch will now be transferred to the new company. NHC is one of the leading UAE companies in the field of Industries, finance and real estate.
Added on: 1/30/2011
MMG Signs Contract for Projectin Abu Dhabi with Hyundai
Mohammad Al-Mojil Group (MMG) has signed a contract worth SR197 million ($52 million) with Hyundai Engineering and Construction to build a base lube factory in Abu Dhabi, UAE. The project will be the first that MMG will execute outside Saudi Arabia. As part of its diversification strategy the group has started now focusing on the opportunities in the GCC countries and its first move in this direction was to start a full-fledge operation in Abu Dhabi. Last year it received license from the Abu Dhabi authorities to start its operation. In the Hyundai project MMG will undertake site preparation, civil work and eventually construction of the premises that will house the base factory. Work is scheduled to begin in February this year and completed in December 2012. The contract reflects the confidence of clients and the role of the company in the industrial sector and construction industry.
Added on: 1/15/2010
SR 49 Million Project Contract with Ma'aden Signed
MMG signed has signed a contract worth SR49 million with Ma’aden for Phosphate to implement electro-mechanical works at the latter’s project in Ras Az-Zawr. Ibrahim S. Al-Shuwier, MMG President & CEO, said, “work is expected to start at the earliest under terms and provisions of the contract and is scheduled to complete in November next year.” He said that the signed project is an extension of two previous MMG-Ma’aden contracts for Phosphate projects worth SR129.6 million.
This will consolidate MMG’s position, reflecting clients’ trust and highlighting MMG’s leading role in the industrial sector. Al-Shuwier revealed that the construction projects that are with MMG valued at SR3 billion.
Added on: 9/15/2010
Letter- of- Intent for SR 415 Million Project Signed
MMG has signed a Letter-of-intent with the Korean Company, SK Engineering & Construction, to build residential units and to lay the infrastructure groundwork at King Abdullah Center for Petroleum Studies and Researches in Riyadh. The total cost of the project is estimated at SR415 million. Work on the project is expected to start soon and is scheduled to be completed by the end of 2011.
Added on: 9/15/2010
Letter- of- Intent for SR 95 Million Project Signed
MMG has signed a Letter-of-intent with SEPCO III Electric Power Construction Corporation to install boilers at the Power Generating Plant Project in Yanbu. The cost of the project is estimated at SR96.33 million. Work is expected to start soon and the project is scheduled to finish by the end of 2012.
Added on: 9/15/2010
MMG, Al-Rushaid Sign Joint Venture Agreement
MMG and Al-Rushaid Company has signed an agreement to establish a joint venture company with a total capital of SR500,000 on a 50 percent share each basis to manufacture, provide and install Cryogenic tanks and Pressure Vessels designed mainly for oil and gas, petrochemicals, energy and water sectors. WHESSOE will provide technology and expertise for the venture.
MMG Chairman Adel M. Al-Mojil said the expertise and experience of both the companies will be used to serve the industrial sector both in the Kingdom and abroad. Ibrahim S. Al-Shuwier, MMG President and CEO, said this venture reflected MMG’s new strategy of diversification by entering into partnership with national companies.
Added on: 9/15/2010
Letter- of- Intent Signed for SR165 Million Jubail Refinery Project
MMG has signed a Letter-of-intent with Daelim Saudi Arabia Co., Ltd. to implement mechanical works, to provide work force and equipment needed for work at some parts of ARAMCO’s Jubail Refinery Project in Jubail Industrial City. The contract is valued at SR 165 million. The project is expected to be completed by the end of 2012.
Added on: 9/15/2010
MMG Opens Branch in Abu Dhabi
MMG has obtained commercial license to start an affiliate branch in Abu Dhabi. Ibrahim S. Al-Shuwier, MMG President & CEO, said that the new branch reflected MMG’s expansion strategy of seizing business opportunities available at local as well as regional markets. He said MMG intends to participate in the development projects in the United Arab Emirates and will offer construction works in all fields with special focus on gas, oil, and petrochemicals projects.
Added on: 9/15/2010
SR 136.5 Million Power Plant Contract Signed
MMG has signed a Letter-of-intent with Petrofac Saudi Arabia Limited for the construction of an electric power plant at ARAMCO’s Project at Qran Oilfield in Khurasaniyah. The project is estimated at SR136.5 million. Under the contract, MMG will set up a plant providing all facilities including electrical, mechanical works, work force, heavy quipment and materials. Work is expected to be completed by the end of 2011.
Added on: 9/15/2010
SR 293.3 Million Power Plant Contract Signed
MMG has received Letter of Intent duly signed with Technicas Reunidas Gulf Co. Ltd. to construct an electric power plant worth SR293.3 million at ARAMCO’s Project at Munifa Oilfield. Under the agreement, MMG undertakes to set up a plant with all facilities, civil work included, and to implement electrical, mechanical works, provide work force, heavy equipment, materials and other needed purchases. Project work is expected to complete by mid 2012.
MMG has received Letter of Intent duly signed with The Spanish Technicas Riunedas Company to construct an electric power plant worth SR293.3 million at ARAMCO’s Project at Munifa Oilfield. Under the agreement, MMG undertakes to set up a plant with all facilities, civil work included, and to implement electrical, mechanical works, provide work force, heavy equipment, materials and other needed purchases. Project work is expected to complete by mid 2012.
Added on: 9/15/2010
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