Renaissance holds annual general meeting

Muscat - 

Renaissance Services held its annual general meeting (AGM) on Thursday, where shareholders approved the company’s financials for the year ended December 31, 2016. 

The company did not offer any dividends this year too as the oil price crisis had an adverse impact on the performance of its two core businesses; Topaz, a global offshore vessel company, and Renaissance contract services.

Speaking at the AGM, Samir Fancy, chairman, Renaissance Services, said, “Our company is sustained by the strength of its relationships with all key stakeholders. These relationships are as strong as ever, because our stakeholders recognise and understand the value of our company.”

“Our stakeholders understand the temporary nature of the industry crisis. They recognise the stability and strength with which we are meeting all our obligations; and they see the same strong future that lies ahead,” Fancy added.

The group’s total revenue fell RO30.5mn to RO206.5mn in 2016 compared to RO237mn in 2015. The net loss after tax stood at RO39.2mn as compared to RO30mn loss in 2015. The losses incurred include those from discontinued operations such as the Marine Engineering Division and RS Angola. The company also incurred one-off charges to the tune of RO37.5mn related to Topaz in 2016. This includes provision for impairment of vessels [RO36.5mn] and increase in derivative liability [RO1mn].

According to the annual financial report, the net loss after tax from Topaz was RO2.8mn. The report has attributed the loss to ongoing oil price crisis, but also expresses confidence for the future on the back of long-term contracts, which they believe will a significant upturn in performance from 2018. Topaz has a contract backlog of US$1.6bn. The company has also secured a contract worth in excess of RO550mn from Tengizchevroil [TCO].

The company’s services businesses fared better compared to 2015 as it posted a net profit before tax of RO6mn. The company has plans to diversify the range of its services, sectors and geography and aims to reduce exposure to the oil and gas industry.

Speaking about the outlook, Fancy said in the report that 2017 too will be a difficult year for the company. “There is always a time lag between improving oil price and new investments in the industry. So we remain in our stable and resilient mode for this year. However we are thinking and acting ahead of the curve of current reality. Our secured growth contracts and projects provide us a future to look forward to in 2018 and beyond,” said Fancy in the annual report.

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