The Channel - issue 11 - March 2010

Renaissance: absorbing challenges, alert to opportunity

Topaz realizes strong growth

Topaz Energy and Marine announced its

audited financial results for 2009, posting revenue

of US$ 448 million, EBITDA of US$ 127 million

and Net Profit of US$ 65 million, demonstrating

year on year growth of 7%, 14% and 38%

respectively. Topaz also achieved record results

for the ninth consecutive year and brought its total

asset base on the balance sheet to US$ 874

million while maintaining a comfortable gearing

ratio of 0.89, confirming the company’s strong

capital structure.

“Certain strategic acquisitions made in the

Caspian and the Middle East in recent years, and

subsequent additions to the offshore support

vessel fleet are providing us consistent returns

and cash flows. The strong balance sheet

together with a splendid operating performance

saw us navigate comfortably through the financial

crisis,” said Pramod Balakrishnan, CFO at Topaz

corporate.

Renaissance Services has achieved record

results for the ninth consecutive year in 2009.

Reports of the Group’s performance was front

page business news in early March, with

publication of the complete Chairman’s

Report and summary Annual Report hot on

the heels of the assuring news.

The Group achieved a credible outcome in

the year despite facing the globally hard-

hitting economic crisis. The company’s

recession-resilient results demonstrate the

solid foundation for growth that the

Renaissance model is built upon, explained

in the Chairman and CEO Reports

published in the Annual Report.

For the complete texts, please

visit renaissance-oman.com

Every year Renaissance publishes an Annual

Report to communicate with its various stakeholders:

Customers, Employees, Shareholders, Suppliers, and the Communities in

which we serve. The 2009 Annual Report theme carries four meaningful agenda points that

sustain the company’s long-term resilience: Good Governance, Operational Excellence, Alignment

with the best in oil & gas, and Local focus. The key message communicated is Renaissance’s solid

foundation and capability to effectively manage periods of both the business cycle booms and busts,

while the visual and creative execution tone reflects stability and confidence.

From the 2010 Chairman’s Statement

Looking to the future

In my report to you last year we faced the toughest global recession in modern times and I promised you

that we would not waste this crisis. The 2009 performance demonstrates that, operationally, we managed the

enormous immediate challenges of the crisis in a manner that we could still deliver growth, while the world

economy contracted. The continued support of financial institutions to participate in our 2009 investment

programme, in spite of the most severe credit crunch, reflects the spirit of true partnership that we share with

our bankers in Oman, UAE and abroad. It is also testament to the prudence and integrity of our financial

management and controls; the security and bankability of our contracts; and the confidence in our disciplined

approach to investment. In 2009, while many corporations down-sized our human resources grew from

> 10,000 to > 11,000 people – at the same time generating more income per capita in each of the businesses.

The organization restructure is built for the permanent future, not for the temporary recession. Our constant

endeavour to consider and research merger and acquisition opportunities has been as active as ever, although

no specific transaction has met our criteria for active interest, the process alone is a constant investment in

experience and knowledge for our team.

In our current investment programme we have 13 vessels under construction in shipyards around the world:

6 vessels for the MENA region, including 4 AHTS (Anchor handling tug) vessels for the Saudi market; 5 barges

for Agip KCO in Kazakhstan with 2 to be deployed in 2010 and 3 in 2011; and 1 AHTS and 1 ERRV

(Emergency response vessel) for new 10-year contracts for BP in Azerbaijan. Along with the 2 Contract

Services PAC projects completing construction, 10 of these new vessels shall have a positive economic

impact on our growth in 2010.

While there is growing evidence of the world pulling out of recession, we choose to be cautious and enter

2010 with the same tightness of discipline in managing our cash flows and our third-party risk. There is often

a time-lag of effect from over-capacity in various business sectors and higher unemployment, particularly in

the major developed economies. In this regard we continue to benefit from the diversity of our business

portfolio. In 2009 our Engineering business was impacted negatively, but growth in the Marine and Contract

Services businesses sustained us. In 2010 Engineering is coming back strongly, but we do anticipate

continued and increasing pressure on utilization and margins in the spot market of the Marine business in the

MENA market for at least the first half of the year. The difference, looking at 2010, from when we looked ahead

to 2009, is that the scale of confidence is greater. Last year, we felt we could still deliver growth in spite of the

recession and we did. This year, we are poised to deliver growth over the year in spite of some continuing

impacts of the recession to which we remain ever-vigilant and alert.

For the longer term, it is clear that we have a business that is succeeding and growing in spite of

adversity in the economic environment. It is equally clear that this business has competence, stability and

momentum. Because of this, Renaissance stands on the threshold of enormous potential

on an even greater scale than all that has been achieved to date. We pride our-

selves that Renaissance has been a pioneer of many firsts in our market. We

do not seek to be innovative and different simply for the sake of it – indeed

our disciplined approach to investment and financial control is as

conservative as could be. But I can assure you, we shall be seeking out the

best possible way to capture this potential for the enduring benefit of all

our stakeholders.

Samir J. Fancy

Chairman

Renaissance Services SAOG


Mr. Saalim Gaima, having

completed 22 years, has been

appointed Chief Support-Services

Officer.

Mr. Joaquim D’Costa, also

with CSG for 21 years, has been

appointed Chief Operating

Officer, while Mr. Peter James

continues his role as QA/HSE

Advisor which he has overseen at

CSG for 11 years, and has been

with CSG for 18 years.

At CSG, Mr. Ananda Fernando

has been appointed Chief Exec-

utive Officer - CSG, having spent

22 years in the company and

successfully managing the steady

growth for the group as the

Commercial GM for 12 years.

Team members supporting the

CEO also include promoted

managers from within the group.

Mr. Adil Bahwan, who has been

with CSG for 15 years, has been

appointed Chief Development

Officer, with responsibilities for

new market entries and new proj-

ects, while also holding the role of

GM at TISCO.

Also at CSG, Mr. Karim

Shaikh has been appointed Chief

Financial Officer, having fulfilled

the role of Finance Manager at

CSG for 19 years.

Executive Moves

Promotions and new ap-

pointments recently announced

at Renaissance have led to

restructuring changes at the

senior management level, most

notably for Contract Services

Group (CSG), as well as at

Renaissance, Topaz Energy

and Marine and NHI.

At the Renaissance corpo-

rate level, Mr. Arindam Ray,

who has completed 7 years at

Renaissance, most recently as

as the Executive Assistant to

the CEO, and has been pro-

moted to General Manager

Mergers and Acquisitions for

Topaz, seen as a crucial role to

drive the group’s inorganic

growth path.

Also at Renaissance corpo-

rate, Mr. Vishal Goenka has

been appointed Renaissance’s

Chief Financial Officer, having

served as the group’s Financial

Controller for 10 years.

Vishal Goenka, CFO

Adil Bahwan, CDO-CSG

Karim Shaikh, CFO-CSG

Saalim Gaima, CSSO-CSG

Peter James, QA/HSE Advisor

Joaquim D’Costa, COO-CSG

Arindam Ray, Topaz GM M&A

Ananda Fernando, CEO-CSG


At Topaz, following the

appointment of Mr. Bill Bayliss,

the Engineering division’s Chief

Operating Officer, a number of

new managers have been

appointed for the division’s

business units. Mr. Tom Bower

has been appointed GM Topaz

Ship Building, while Mr. Suresh

Sebastian has joined as GM

Topaz Fabrication and Construc-

tion.

At the Topaz Marine division,

Mr. Paul Bundy has been

appointed GM Topaz Marine

Azerbaijan, while Mr. Tomasz

Maszka has been appointed GM

Topaz Marine Turkmenistan.

Renaissance partakes in

major investor conferences

Stephen Thomas, Renaissance CEO

and Vishal Goenka, Renaissance CFO, met

with the investor communities at the

BankMuscat Investor Conference in Oman,

and the EFG Hermes One-on-One in Egypt

this month. BankMuscat invited the top 15

performing companies from Oman and

Saudi Arabia to meet with leading fund man-

agers from around the region, while in

Egypt, over 250 global and regional institu-

tional investors met with 61 of the region's

best publicly-traded companies. The EFG

Hermes flagship conference, now in its

eighth year, was the largest gathering of its

kind in the region and marked its highest

record in attendance turnout - up 66% from

2009. The record turnout is an indication

that as markets begin to recover, investor

appetite for MENA equities is similarly buoy-

ant.

Renaissance Values:

MeritWe commit to apply a policy of

nondiscrimination in employ-

ment and promotion. Merit and

experience alone should

govern, and all should have

equal opportunity irrespective

of race, colour, gender or

creed.

To learn more about our values

please visit :ht tp: / /www.renaissance-oman.com/en-

B/About_Renaissance/Values.aspx

At NHI, Toufiq Al Ajmi has re-

cently been promoted to Busi-

ness Development Manager after

having contributed instrumentally

to the sales department as Sales

Manager at NHI for the last 3

years. He initially joined NHI in

1995.

These changes reflect our

continued commitment to Renais-

sance people and to promoting

through merit and experience. By

adopting the most careful

methods of selection, training and

promotion, we are dedicated to

maintaining the best team in each

field of our business groups, and

making Renaissance a place

where our people feel rewarded.

Tom Bower, GM Topaz Ship Building

Paul Bundy, GM Topaz Marine

Azerbaijan

Toufiq Al Ajmi, BDM- NHI

Suresh Sebastian, GM Topaz

Fabrication and Construction

Tomasz Maszka, GM Topaz

Marine Turkmenistan



PAC Bahja opens on time and in cost

PAC Bahja, which has been under construction for less

than two years, has begun receiving its first contractors

lodging there. The Permanent Accommodation for Con-

tractors facility at Bahja has 304 single, double and triple-

occupancy rooms that can house up to 600 resident

contractors under Petroleum Development Oman (PDO).

The long-term contracts for the new PACs at Bahja and

Marmul run until 2044 and the contract value of the initial

5-year period is in excess of Rial 35 million (US$ 91 mil-

lion).

Senior officials from PDO visited the new Bahja site and

awarded the Contract Services Group management team

shields for completing 2 million man hours with no LTI. The PAC recreation facilities include a fully

equipped and staffed clinic, indoor and outdoor

sports and games facilities, dining facilities sup-

ported by state-of-the-art kitchens, bakery and

stores, and other buildings including meeting rooms,

DVD hall, library and auditorium. The PACs also

have an on-sight garden nursery to grow its own

shrubs, flowers and trees.


Above: PAC Bahja facilities include 304 rooms. Below: The kitchen, clinic, library and DVD room are shown to PDO visitors.

LOCAL

Employing a national workforce:

Omanisation Statistics

Employing a national workforce is relevant across

all Renaissance businesses and geographies, and is

among the Renaissance Values embedded in the

company philosophy, with particular relevance to

social responsibility and giving back to the communi-

ties in which we serve. By training and recruiting a

national workforce, our businesses are supporting the

growth of the local economy, which is essential for the

long-term business perspective which Renaissance

maintains.

Approximately 20% of revenue generated in 2010

by Renaissance businesses is from Oman. Across all

groups operating in Oman, the latest Omanisation

statistics show that Renaissance is at or above its

required rate for the following businesses:

LOCAL

NHI Celebrates 15 years

The National Hospitality Institute (NHI) celebrated its

15 year anniversary with a three day Annual Hospitality

Exhibition at Muscat City Centre this month. This event,

which has taken place since its inception in 1996, has

been continually supported by hospitality industry opera-

tors over the years and this year was joined by the top in-

ternational hotel chains in the country. “This is a very

valuable event with growing importance as Omanisation

targets in the industry continue to rise,” said Robert

MacLean, Principal of NHI. The objective of the exhibition

is to enable young people in Oman to see the different

sides of hospitality and to give them the opportunity to

speak to a training provider and future employers about

job prospects and careers in the industry.

% Omani Required

Renaissance

CSG:

TISCO

RCCS

ETG:

NTI

NHI

MCG:

UMS 36%

31%

38%

35%

42%43%

38% 37%

35%

30%

30%

30%

MEG:

NICO 35% 35%


LOCAL

OER CEO Golf 2010

United Media Services monthly business publication,

Oman Economic Review, hosted the 6th edition of OER

CEO Golf. The main highlight was this year’s new hosting

venue, Muscat Hills Golf and Country Club, giving the

event its green course debut and ensuing attendance by

golfers was double that of previous years. The tourna-

ment was officially teed-off by HE Dr. Mohammed bin

Hamad Al Rumhi, Minister of Oil and Gas, and attended

by over 200 of Oman’s senior business leaders.


LOCAL

NTI BizPro 2010 awards

National Training Institute (NTI) organized its 4th

consecutive BizPro award ceremony, announcing the

3 major winners of the Omani Young Achievers awards

and the Omani Business Leader award. The gala func-

tion was attended by Oman’s corporate leaders and

featured individual presentations from Omani present

and past winners, as well as speeches from Saud bin

Ahmed Al Nahar, CEO of Port Services Corporation

and this year’s Business Leader. Other speakers

included Dr. Amer Rawas, CEO of Omantel, Michael

Armstrong, Partner in charge at KPMG, and guest

speaker Nabil Al Busaidi.

Young Achievers 2010 Award winners:

Hana Mohammad Masoud Al Kharusi, Unit Head NBO

Taha Husain Shahdad Al Raisi, Department Head at Nawras

Hani Dawood Ramdan Al-Zadjali, Head HRD at ORPC

LOCAL

Topaz runs for the ‘Flying Angel’

Six Topaz team members participated in a charity

run last month to raise funds for the Flying Angel, the

seafarer support vessel that visits ships anchored off

the east coast of the United Arab Emirates, offering

comfort to many thousands of seafarers every year.

Each runner agreed to raise US$270 towards the

Angel Appeal by running either a whole 21km, or 5km

as part of a four-man team. More than 46 runners from

various companies participated in the Ras Al Khaimah

Half Marathon in aid of the Angel Appeal raising over

US$23,000 to help maintain the Flying Angel.

Last October, Topaz announced its commitment to

manage the Flying Angel and absorb the vessel’s

operating and running costs for the entire year.

Topaz at new address

The Topaz Energy and Marine corporate office has

relocated to a new location at the Jumeirah Lakes

Towers in Dubai.

Willie Jackson, Afloat Repairs Manager, Topaz Marine Repair

the channel issue 11

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