30 April 2013
DAMMAM -- Mohammad Al-Mojil Group (MMG) Board of Directors approved the recommendation of the Remuneration Committee to accept the resignation of Ghunaim Al-Ghunaim and appoint three new independent directors from the list of candidates from the public shareholders to fill the vacant positions.
The names of the three appointed independent board directors are as follows: Dr. Suleiman Al-Samahi, founder and chief executive of Oti. Establishment. Dr. Al-Samahi has also held many leading roles, including management development and Saudization and acting as chief executive for a Saudi Research and Marketing Group company, and member of the Restructuring Committee of the Aljazeerah Bank.
Adel Abdurrahman Al-Butairi, who previously worked in Hadeed, an affiliate of Sabic for 30 years as the Chief Specialist, Coordination. Al-Butairi possesses extensive experience in quality assurance, production planning, marketing, sales and customer relations.
Ahmad Al-Ghamdi, a prominent figure currently serving for the Bureau of Investigation and Public Prosecution, Riyadh. Al-Ghamdi has 19 years of experience.
The board, which met on April 28, thanked Al-Ghunaim for his contribution to the company and welcomed the new board members who are shareholders having nominated themselves according to a set criteria announced earlier by the company.
The board now operates with full quorum and balanced representation comprising shareholders and executive management, which will provide stability to the company given the shared commitment of all members to the company.
The appointments come in the wake of the financial results of the first quarter of 2013 which showed a marked improvement in the cash flows of the Company by a total of SR184.9 million compared to the first quarter of 2012 (SR197.4 million improvement in operating cash flows, SR98.8 million increase in investment cash flows and a reduction of SR111.3 million in financing cash flows).
For the first time since the end of 2011, the company has neared a neutral level in operating cash flows, and having generated funds from asset disposals, it has reduced its overall level of debt. The company has also achieved a reduction in net loss by 90 percent compared to the previous quarter and 36 percent compared to the same quarter of last year.
MMG CEO Stewart Macphail, said, "We believe these results show the first signs of stabilization of the operations as a result of focus on addressing the inherent risks of the remaining fixed price contracts, improved controls, optimal allocation of resources and achieving the targets of the recovery plan by sale of certain noncore assets and tighter controls on projects and spending. The company remains on plan to dispose of noncore assets as explained in an Extraordinary Shareholders Assembly meeting held in November last year."
Macphail said, "We have completed the risk re-profiling of the backlog of legacy projects which have contributed to the sizable losses and provisions announced in 2012.
At the same time, MMG managed to secure additional works in its core business, which is starting to generate healthy returns. At the moment, the size of the new projects is small, given the significant resources of the company committed to the completion of legacy fixed price projects."
He said, "Though challenges remain ahead, we have set the company on the right track."
DAMMAM -- Mohammad Al-Mojil Group (MMG) Board of Directors approved the recommendation of the Remuneration Committee to accept the resignation of Ghunaim Al-Ghunaim and appoint three new independent directors from the list of candidates from the public shareholders to fill the vacant positions.
The names of the three appointed independent board directors are as follows: Dr. Suleiman Al-Samahi, founder and chief executive of Oti. Establishment. Dr. Al-Samahi has also held many leading roles, including management development and Saudization and acting as chief executive for a Saudi Research and Marketing Group company, and member of the Restructuring Committee of the Aljazeerah Bank.
Adel Abdurrahman Al-Butairi, who previously worked in Hadeed, an affiliate of Sabic for 30 years as the Chief Specialist, Coordination. Al-Butairi possesses extensive experience in quality assurance, production planning, marketing, sales and customer relations.
Ahmad Al-Ghamdi, a prominent figure currently serving for the Bureau of Investigation and Public Prosecution, Riyadh. Al-Ghamdi has 19 years of experience.
The board, which met on April 28, thanked Al-Ghunaim for his contribution to the company and welcomed the new board members who are shareholders having nominated themselves according to a set criteria announced earlier by the company.
The board now operates with full quorum and balanced representation comprising shareholders and executive management, which will provide stability to the company given the shared commitment of all members to the company.
The appointments come in the wake of the financial results of the first quarter of 2013 which showed a marked improvement in the cash flows of the Company by a total of SR184.9 million compared to the first quarter of 2012 (SR197.4 million improvement in operating cash flows, SR98.8 million increase in investment cash flows and a reduction of SR111.3 million in financing cash flows).
For the first time since the end of 2011, the company has neared a neutral level in operating cash flows, and having generated funds from asset disposals, it has reduced its overall level of debt. The company has also achieved a reduction in net loss by 90 percent compared to the previous quarter and 36 percent compared to the same quarter of last year.
MMG CEO Stewart Macphail, said, "We believe these results show the first signs of stabilization of the operations as a result of focus on addressing the inherent risks of the remaining fixed price contracts, improved controls, optimal allocation of resources and achieving the targets of the recovery plan by sale of certain noncore assets and tighter controls on projects and spending. The company remains on plan to dispose of noncore assets as explained in an Extraordinary Shareholders Assembly meeting held in November last year."
Macphail said, "We have completed the risk re-profiling of the backlog of legacy projects which have contributed to the sizable losses and provisions announced in 2012.
At the same time, MMG managed to secure additional works in its core business, which is starting to generate healthy returns. At the moment, the size of the new projects is small, given the significant resources of the company committed to the completion of legacy fixed price projects."
He said, "Though challenges remain ahead, we have set the company on the right track."
© The Saudi Gazette 2013
