Mohammad Al-Mojil Group Co. (MMG) plunged the most since April 2009 after the Saudi construction-services company forecast “substantial losses” that will exceed 10 percent of its total assets.
The shares tumbled 9.9 percent, the maximum movement allowed in one trading day, to 21.50 Saudi riyals, at 12:23 p.m. in Riyadh.
The losses are “due to additional costs of materials, equipment and manpower of some of the ongoing projects in excess of the approved budgets,” the Dammam, Saudi Arabia-based company said in a statement to the Saudi Stock Exchange after the close of trading on Jan. 18.
Al-Mojil said it has hired an international company for technical consultancy to review the projects, which are subject to expected losses. The external auditors will review the losses, it said. The company will also delay publishing its quarterly results.
To contact the editor responsible for this story: Shaji Mathew at firstname.lastname@example.org