The ChannelA Renaissance Services SAOG Group Newsletter volume 2 issue 6

www.renaissance-oman.com

Print less. Save

more trees.

The Channel is a digital bi-monthly internal

newsletter produced by Renaissance

Services which aims to reach every

employee in each country of our worldwide

operations. Please do forward this to your

fellow team members and thank you!

Renaissance issues adverts for

responsible driving

Financial News HeadlinesNew financing and capital raise

initiatives are prominent Renaissance

headlines in Q4.

Oman Debate 2011

Oman Economic Review (OER)

organises an exciting stage for the

third Oman Debate and OER Top 20.

Renaissance CEO New Yearmessage

CEO Stephen Thomas reenergizes the

landscape for a promising new year.

Also Inside:

Renaissance discloses Q3 2011resultsContinuing revenue growth underlines

the enduring value of the Renaissance

franchise.

Season’s Greetings to all! If you missed this card, please click

http://www.nibblesoman.com/greeting/season2012.htm

Renaissance replaced traditional greeting cards with customized e-cards twoyears ago in a bid to go greener.

CSR: UNICEF charity event

Renaissance wins KWD Gold Award

Conclusion of CMA audit

CEO interviewed on good governance

Available in English and Arabic: http://www.renais-sance-oman.com/en-GB/Company_Reports/Quar-ter_Reports.aspx

Renaissance discloses Q3 2011 results and holds conference call

Renaissance Services declared its interim results for the third quarter

(Q3), or nine months ended 30 September 2011, achieving revenues of US$

535.6 million, an increase from US$ 486.5 million, or 10%, recorded in the

corresponding period last year.

Back on Track

In the Q3 Chairman’s Statement, Samir Fancy, Chairman of Renaissance

Services, said that the company has succeeded in getting key projects back

on schedule with positive success, while “significant progress” was made

on the refinancing and re-organisation of Topaz Energy and Marine.

Topaz has been re-organised into two distinct and separate Renaissance

subsidiaries, namely Topaz Energy & Marine and Topaz Engineering. The

separation of the businesses brings clarity in terms of the industry sectors in

which the companies operate: Topaz Energy & Marine is a pure Offshore

Support Vessel (OSV) enterprise, while Topaz Engineering is structured in

two divisions: Topaz Marine Engineering, serving the marine repair and ship

building sectors; and Topaz Oil & Gas Engineering, operating in the Oil Field

Services (OFS) sector.

The re-organisation provides a more efficient, flatter

organisational structure, and brings clarity in terms of

business sector and value recognition. The changes also

deliver overhead cost reductions with an annualized net

reduction of > US$ 2.5 million in the corporate overhead

and > US$ 3.8 million reduction in the Engineering

business overhead.

In particular, the new management team of the

engineering business is making good progress in

addressing its temporary losses. "They have restored the

100% customer-focus ethos at which this company excels.

The business has been restructured and streamlined with

significant savings in overheads, and increased invest-

ment in process control and professional project manage-

ment. These actions have already contributed to a

reduction in losses compared to the prior quarter," said the

Chairman’s Statement.

Excerpts from the Q3 2011 Chairman’s Statement:

Of the company's marine business, Fancy said, "The

business continues to perform well, although the Q3 result has been tempered by additional expenses arising in this

quarter and scheduled downturn in utilisation for dry-docking and maintenance. Independent market analysis predicts

strengthening rates and utilisation in spot markets over the coming year, and the company is witnessing clear signs of

the start of a more positive trend."

Concerning the future outlook and break-even position for Topaz, the Chairman added, "After a period of unprece-

dented turbulence in that business we believe the company to be well positioned to take advantage of future growth

opportunities in the Caspian Sea and GCC markets. The 2012 backlog of business already in hand for oil and gas

engineering is OMR 26.9 million and for marine engineering is OMR 6.5 million. With several contract opportunities

under positive review, the backlog is likely to increase before year end 2011 and we expect to achieve a break-even

position for the engineering business for 2012."

The Channel - issue 6 - Nov - Dec 2011

Highlights:• Group Revenue has increased by 10% to Rial 206 million (US$ 536 million)• Marine business Revenue is up by 25% to Rial 82 million (US$ 214 million) • Strength of underlying business performance shall enable Renaissance toabsorb the impact of non-recurring items in Q4 without affect to the business • Engineering business performance has stabilised with reduced losses

Senior management conducts conference call with investors, shareholders and media

Following the positive responses evoked from the company’s open conference call regarding the company’s

half-year results (H2 2011), Stephen Thomas and Vishal Goenka, CEO and CFO of Renaissance respectively, sat

down to a 45 minute open question and answer session with shareholders, investors and international media

regarding the third-quarter 2011 results and statements made in the corresponding Chairman's Report.

To download the session please click http://www.renaissance-oman.com/en-GB/Media_Center/Downloads.aspx

Renaissance subsidiary Topaz announces US$ 380 million financing initiative

Nigel Anton, Managing Director and Head of Shipping Finance at Standard

Chartered Bank, commented on the alliance saying, “Standard Chartered is

delighted to be able to strengthen our relationship by supporting Topaz with their

ambitious growth plans; our co-arrangement of this transaction together with DVB

Bank underpins our belief in the future success of Topaz. Standard Chartered as

a well-capitalized and liquid bank remains fully committed to the region and the

shipping business.”

Topaz Energy and Marine

announced a US$ 380 million (Rial

146m) financing initiative that

features Topaz’s offshore support

vessel division, Topaz Marine, and

that has roped in Standard

Chartered Bank and DVB Bank to

lead the initiative.

Commenting on the initiative,

Vishal Goenka, Chief Financial

Officer of Renaissance, said, “This

deal will significantly improve

Topaz’s liquidity, unlock trapped

equity, and increase the availability

of new funds to capitalize on future

growth opportunities. The interest

from our relationship banks and

also from new banks in this deal is

very encouraging and reaffirms the

market’s appreciation of the

company’s business model and

governance. Out of US$ 380

million, approximately US$ 125

million is for vessels under

construction and for investments in

new vessels.”

The company’s Board of Directors has recently

approved a new capital initiative which seeks to raise up

to Rial 50 million (USD 130 million) through a quasi-equity

instrument that will be arranged and advised by

BankMuscat.

The offering is subject to regulatory provisions and the

shareholders’ approval, and is expected to be open to

current shareholders and new investors through private

placement. The proceeds will be used to fund the

company’s expansion plans, primarily in the Marine

business in the GCC and Caspian regions, and will also

be used to further strengthen the company’s balance

sheet.

Commenting on the initiative, Samir Fancy, Chairman

of Renaissance Services, said, “This capital raising

provides Renaissance with the financial flexibility to

continue our expansion plans and grow our core

business, which continues to deliver a strong perform-

ance. We have made significant progress in addressing

the challenges of 2011 and are pleased by the support

Renaissance Board approves plans to raise new growth capital

shown in us by our investors. We are confident that the

fundamental strengths of our business model will drive

profitable growth in 2012 and beyond. The new capital

will help us to take advantage of future growth opportuni-

ties available to us in our core market,” Fancy added.

BankMuscat has been appointed the Financial

Advisor and Arranger of the capital-raising. AbdulRazak

Ali Issa, Chief Executive of BankMuscat, said, “We thank

the Renaissance Board for the confidence placed in our

investment banking team for this important capital

raising mandate. Our team has been consistently ranked

amongst the top 25 global advisors over the last three

years in terms of mandates won and mandates closed by

Infrastructure Journal and Project Finance International.

The team has successfully managed a number of large

equity raising transactions over 2008-11 despite

challenging market conditions. We look forward to

working on this transaction with Renaissance and bring it

to a successful close.”

Renaissance announces conclusion of CMA AuditRenaissance Services announced in the third quarter that the Capital Market Authority (CMA) audit initiated

after the half-year results has been completed. Renaissance was found to be in overall compliance with the CMA

Disclosure Regulations and Guidelines, with the exception detailed by the CMA concerning market rumors fueled

in January of this year of the company’s plans for an IPO to list its subsidiary Topaz. For further details please click

on http://www.renaissance-oman.com/en-GB/Media_Center/Press_Releases/Release_119.aspx

The Channel - issue 6 - Nov - Dec 2011

message

CEOfrom

the

Feature Story

The most prestigious economic forum in the coun-

try, Oman Debate 2011, organised for the third year by

Oman Economic Review in cooperation with the

Capital Market Authority (CMA), was attended by top-

level officials of both public and private sectors,

including heads of institutions, policy-makers and

corporate captains.

Anchored by renowned television host Tim Sebast-

ian, the founder and chairman of ‘The Doha Debates’

and former BBC Hard Talk presenter, the discussion

centered around topics such as Omanisation, bureau-

cracy, job creation, red-tapism, lack of transparency

and shifting the paradigms of the education and

training systems in the country to meet the

requirements of a changing business landscape.

The majority of panelists and participants agreed

that there is an urgent need to revamp education

system in the country, including training programmes,

to enhance skill sets to match the requirements of the

private sector.

An eminent body of panelists representing both the

government and the various business sectors cutting

across the industry included HE Dr Salem bin Nasser

Al Ismaily, Chairman, Public Authority for Investment

Promotion & Export Development, HE Ahmed

Al- Dheeb, Undersecretary, Ministry of Commerce and

Industry, Hani Al Zubair, Executive Chairman, Zubair

Automotive Group, Hussain Jawad, Chairman, W J

Towell, Adil Taqi, CEO, Muriya Tourism Company,

Hatem Al Shanfari, Faculty Member at the Department

of Economics and Finance, Sultan Qaboos University,

Dr Mohamed Abdulaziz Kalmoor, CEO, Bank Sohar,

Ross Cormack, CEO, Nawras, Faisal Al Lawati, Execu-

tive Director, Genetco, and Dr. Brian Buckley, General

Manager & CEO, Oman LNG.

HE Darwish Ismail Al Balushi, Minister Responsible

for Financial Affairs, who was the chief guest of the

event, praised Oman Economic Review for organizing

the national debate and annually recognising the

efforts of the corporate world through its Top 20

awards. He emphasized the role of private sector in

transforming Oman to a modern and diversified

economy. “A key element for a vibrant economy is a

thriving private sector and Oman’s eighth five-year plan

offered tremendous opportunities for the private

sector to experience sustained growth,” said

HE Darwish.

The OER Top 20 trophies for year 2010 were

presented to the largest listed companies on the

Muscat Securities Market at the event, celebrating cor-

porate excellence. Renaissance Services jumped one

position to 5th place in the list. The OER Top 20

companies are Oman Telecommunications Company,

Galfar Engineering & Contracting, BankMuscat, Shell

Oman Marketing Company, Renaissance Services,

Al Maha Petroleum Products Marketing Co, Oman Oil

Marketing Company, Oman Cables Industry, Nawras,

Oman Holdings International, National Bank of Oman,

BankDhofar, Areej Vegetable Oils & Derivatives,

Raysut Cement Company, Al Jazeera Steel Products

Company, Bank Sohar, Dhofar Power Company,

OMINVEST, Al Hassan Engineering Company and

Salalah Port Services Company.

Oman Debate 2011 throws light

on new challenges

The Channel - issue 6 - Nov - Dec 2011

Renaissance Services was among the sponsors of

"Feed the World", a unique event supporting

UNICEF’s Famine Children's Appeal hosted in Oman

recently. The charity to help the famine victims in

Africa raised close to US$50,000 and featured

celebrity chef Antony Worrall Thompson as he

supervised top CEOs and key business figures in a

cooking contest. Other sponsors included Oman Air,

MB Petroleum Services and Daud Holdings

Antony Worrall Thompson is an award winning

celebrity chef, author and television presenter.

Having been diagnosed with Syndrome X, which can

lead to diabetes, Thompson is frequently asked to

comment on serious food issues such as diabetes,

obesity and eating habits in children.

Celebrity Chef Antony Worrall Thompson

CSR: Master chef in Oman for Unicef charity event

The last few years have witnessed a rapid evolution in the de-

velopment of Corporate Governance and Responsibility (“CGR”)

in the region.

Governments have been and continue to implement legislation

to regulate these practices, and the private and public sector are

increasingly taking a more strategic approach to Corporate Gov-

ernance (“CG”) and Corporate Social Responsibility (“CSR”).

Please click the link to a video interview featuring Stephen

Thomas, Renaissance CEO, as he discusses the importance, chal-

lenges and impacts of good governance and corporate social re-

sponsibility for the corporate sector in an interview with Schema,

regional organizers for the Corporate Governance Forum.

Renaissance CEO discusses CSR and

good governance with Schema

Video interview: http://www.cgrforum.com/Pub-

lic_MediaGallery/ListCategories.aspx?Lang=2&CatI

D=8&Site_ID=1&f=p

Road safety is a serious concern in Oman and

around the world – according to the World Health

Organization, 1.2 million people are killed on roads

every year and up to 50 million more are injured.

Speeding is the leading cause of road accidents by

human consequence. To highlight this urgent

situation Renaissance created a short series of pub-

lic awareness messages advocating road safety and

reissued the following advert with harrowing

statistics for the month of October.

The advert copy reads:

October was one of the worst months so far this

year for Oman in terms of road deaths, new statistics

released by the Royal Oman Police show. As many as

110 people were killed across the country in traffic

accidents during the month, while another 903

sustained injuries, in a total of 670 incidents.

Speeding and not wearing seat belts are the leading

causes of road accidents. Please drive safely.

Safety first: Renaissance issues advert for responsible driving in November

The Channel - issue 6 - Nov - Dec 2011