Sunday, May 20, 2012
RIYADH (Zawya Dow Jones)--Saudi construction firm Mohammad al Mojil Group, or MMG (1310 SA), said on Sunday it was replacing its chief executive and commissioning an outside evaluation of the company's projects, financial position and overall performance.
The moves, announced in a statement on the website of the Saudi stock exchange after a Saturday meeting of the MMG board, comes a month after board members set up a steering committee meant to help chief executive Ibrahim Zadeh restructure the company.
In Saturday's board meeting, company officials accepted Zadeh's resignation. The statement did not identify his successor.
Additionally, the board on Saturday gave a power of attorney to the recently formed steering committee to work with independent consultants PricewaterhouseCoopers. The international consulting firm will review the company's projects, its financial position and cash flows, and look for ways to improve the construction firm's efficiency and reduce expenses, the statement said.
MMG does public works and other heavy construction, including oil platforms. The company reported a $90 million loss for 2011 and cited cost overruns in labor, equipment and sub-contracts on ongoing projects.
MMG shares closed Saturday at 13.90 Saudi riyals ($3.70), down 2.1%.
-By Ellen Knickmeyer, Dow Jones Newswires, +966 1 2795252, ellen.knickmeyer@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
20-05-12 0658GMT
