Mohammad Al-Mojil: Cash flow rises by SR 184.9m in Q1

Mohammad Al-Mojil Group (MMG) has appointed three new independent directors.
They are: Suleiman Al-Samahi, Adel Abdurrahman Al-Butairi and Ahmad Al-Ghamdi.
The announcement follows a recent meting of the board of directors.
“Though challenges remain ahead, we have set the company on the right track,” MMG CEO Stewart Macphail was quoted as saying in a statement received here.
The new appointments come in the wake of the financial results of the first quarter of 2013 which showed a marked improvement in the company’s cash flow by a total of SR 184.9 million, compared to the first quarter of 2012 (SR 197.4 million.
In addition to an improvement in operating cash flows, the MMG reported an SR 98.8 million increase in investment cash flows and a reduction of SR 111.3 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. With funds generated 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 non-core assets and tighter controls on projects and spending. The Company remains on plan to dispose of non-core assets as explained in an extraordinary shareholders assembly meeting held in November last year.”
In addition, 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.”
According to the MMG statement, the 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 three directors are: Suleiman Al-Samahi, Adel Abdurrahman Al-Butairi and Ahmad Al-Ghamdi.
Suleiman Al-Samahi is the founder and chief executive of Oti. Establishment. 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.
He holds a PhD in Strategic Planning from Virginia Commonwealth University, VA, US, Masters in Public Administration from Pennsylvania State University, PA, US and Bachelor degree in Political Science and International Policies from King Saud University, Riyadh.
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. He holds a Bachelor’s Degree in Physics from King Saud University, Riyadh.
Ahmad Al-Ghamdi is a prominent figure currently serving for the Bureau of Investigation and Public Prosecution, Riyadh.
Al-Ghamdi has 19 years of experience and holds a Diploma in Commerce.
The board 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.
According to MMG, the new directors bring with them both variety and depth of experience that will help the company and provide leadership in the best interest of the company and shareholders too.
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.