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Article: Huge risk provision set by MG to cover potential U.S. losses. (Metallgesellschaft A.G.'s MG Corp.)
- Article from:
- The Oil Daily
- Article date:
- July 11, 1994
CopyrightCOPYRIGHT 1994 Energy Intelligence Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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FRANKFURT, Germany -- Germany's Metallgesellschaft A.G. (MG A.G.) said last week it will take an additional 1 billion marks (US$636 million) in provisions to cover risks at its U.S.-based MG Corp. subsidiary.
The additional provisions are mainly needed to cover newly discovered risks from a complicated web of contracts between MG Corp. and its 40.1% owned Castle Energy Corp. unit, MG A.G. Chairman Kajo Neukirchen said.
The company's half-year earnings report left open the possibility of further adjustments in provisions.
"The amount of provisions required will be decisively defined by the future development of the oil market," the company said.
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