Saudi construction firm highlights financial challenges

Updated 22 November 2016

Saudi construction firm highlights financial challenges

RIYADH: Saudi construction firm Mohammad Al-Mojil Group (MMG) said it has written directly to Deputy Crown Prince Mohammed bin Salman explaining that it may not be able to continue operating. It was unclear if the privately owned company was seeking financial or other assistance from the government.
In a short statement via the stock exchange on Monday, MMG said its letter to the deputy crown prince prince also addressed constraints imposed by banks and the government, and legal restrictions that were blocking company leaders from speaking publicly about proposed solutions to its problems. It did not elaborate.
MMG is trying to restructure after running into trouble amid wider turmoil in the Saudi construction industry.
MMG said in its letter that “serious financial losses led to doubts over the company’s ability to continue,” according to the statement.
The deputy crown prince chairs Saudi Arabia’s Council of Economic and Development Affairs, which is responsible for overseeing Saudi Vision.
MMG’s shares have not traded on the Saudi bourse since July 2012, when the Capital Market Authority (CMA) suspended the stock over losses incurred as the company overextended itself trying to take advantage of a construction boom in the Kingdom.
Since then, the company has been trying to restructure itself, partly by seeking payment of hundreds of millions of riyals it says it is owed for completed work. It has slashed its workforce to 3,000, from 25,000.


Conflict-hit Libya to restart oil operations but with low output

Updated 10 July 2020

Conflict-hit Libya to restart oil operations but with low output

  • There is significant damage to the reservoirs and infrastructure
  • A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker

TUNIS: Libya’s National Oil Corporation (NOC) lifted force majeure on all oil exports on Friday as a first tanker loaded at Es Sider after a half-year blockade by eastern forces, but said technical problems caused by the shutdown would keep output low.
“The increase in production will take a long time due to the significant damage to reservoirs and infrastructure caused by the illegal blockade imposed on January 17,” NOC said in a statement.
A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker, chartered by Vitol, which two sources at Es Sider port said had docked and started loading on Friday morning.
The blockade, which was imposed by forces in eastern Libya loyal to Khalifa Haftar’s Libyan National Army (LNA), has cost the country $6.5 billion in lost export revenue, NOC said.
“Our infrastructure has suffered lasting damage, and our focus now must be on maintenance and securing a budget for the work to be done,” NOC chairman Mustafa Sanalla said in the statement.
Control over Libya’s oil infrastructure, the richest prize for competing forces in the country, and access to revenues, has become an ever-more significant factor in the civil war.
The internationally recognized Government of National Accord, supported by Turkey, has recently pushed back the LNA, backed by the United Arab Emirates, Russia and Egypt, from the environs of Tripoli and pushed toward Sirte, near the main oil terminals.