The Channel - issue 13 - June 2010

Topaz Annual Report

Topaz Marine and Energy, Renaissance’s

largest subsidiary, has published its Annual

Report for the year 2009. The bold theme of “Our

Business in Absolutes”, reflects an unshakable

attitude with no grey areas. On page 2’s

description: “In every part of our business we do

not deal in grey areas and in unknowns, but

instead we focus on the tangible black and white

factors we can control, in the certain paths that

inevitably lead to outstanding value for our stake-

holders. And by working in a world of absolutes,

we never compromise on our principles, such as

safety, performance and good corporate

governance.” Topaz has reached record results

for the ninth consecutive year, including revenues

of US$ 65 million and 38% growth in net profit.

The Marine and Engineering Group’s revenue

amounted to 70% of Renaissance’s total revenue

in 2009.

The Chairman’s Report on business in the first quarter (Q1) of 2010

highlighted new assets which are expected to contribute positive income

streams during the year, particularly for the Marine and Contract Services

businesses, and added that the positive Q1 performance reinforces the

company’s strength and position to deliver growth.

The Chairman’s Report also stated that the company is seeing signs of

reviving E&P activity from major oil and gas producers and operators, and

that while there is increasingly positive visibility in comparison to Q1 of

2009, the company will continue to evaluate merger, acquisition and

investment opportunities in a disciplined approach.

“We currently have Rial 27.9 million (US$ 72.5 million) in cash on the

balance sheet while maintaining all covenants with the financial institutions

that support us. This underlines the enduring stability of Renaissance,” said

Mr. Samir Fancy in the Chairman’s Report.

Renaissance Services announced its unaudited financial results for Q1

of 2010 in April, reporting an increase in net profit to Rial 5.3 million (US$

13.8 million) against Rial 4.8 million (12.4 million) for Q1 last year, from

total revenues of Rial 55.9 million (US$ 145.3 million).

Renaissance discloses 10% plus growth in net profit of Q1 results

Topaz Fabrication and Construction in Fujairah

completed the Vopak Horizon Fujairah Limited

Phase 5 – Marine Extension Project. Topaz

executed this in subcontract to BA M International

(formerly known as Interbeton). The project was

completed safely without any lost-time incidents

and within the agreed project schedule. The

subcontract was awarded in November 2008, and

Topaz’s scope for the construction of Berth 5 and

6 included detailed engineering of complete piping

and mechanical equipment, structural fabrication

and installation, including painting and pre-

commissioning. Bill Bayliss, COO of Topaz

Topaz complete berth construction

Gulf Petrochem has awarded Topaz’s Fabrica-

tion and Construction unit a Rial 17.3 million (US$

45 million) engineering contract to design, procure

and construct a petroleum storage terminal in

close proximity to the Port of Fujairah.

The project is expected to take 17 months to

complete and will have storage capacity of over 1

million cubic meters at single location.

Mott MacDonald, an international manage-

ment, engineering and development consultancy

with over 14,000 people, has been appointed

project management consultant to oversee the

development. The dock pipeline will feature


Topaz Fabrication and Construction awarded contract

Engineering said, “Topaz has been a partner of Vopak Horizon

Fujairah Limited on several recent projects and we hope to build

on the relationship for future project awards. Because of our

experience operating in Fujairah, a strong HSE track record, and

comprehensive technical capabilities, we’re well placed to deliver

large-scale oil and gas projects in Fujairah.”

Topaz is currently executing several other projects in Fujairah

including EPC contracts for the Port of Fujairah, Fujairah Refinery

and Vopak Horizon Fujairah Limited. With its newly commissioned

30,000 m² fabrication facility in Al Hayl, Topaz aims to capture a

significant share of Fujairah’s future oil storage terminal

construction market.

hi-tech and efficient connectivity systems to the Port of Fujairah

which will add flexibility to the refining and storage of

petrochemicals.

Bill Bayliss, Chief Operating Officer of Topaz Engineering, said

about the contract, “We package international EPC experience,

proven execution capabilities and a rigorous HSE focus to offer

clients a comprehensive, safe and cost-effective engineering

solution. This award once again reinforces Topaz’s competitiveness

in the local terminal market. I would like to express our sincere

gratitude to our client, Gulf Petrochem, for the confidence in Topaz.”

The Renaissance Farr30

A new Renaissance boat has

stirred up a storm in France

where sailing experts and

enthusiasts have been impressed

by the skills of debutant Omani

sailors, many of which have only

had one year’s training, who are

scoring podium results against

sailors with decades of experi-

ence under their belt.

The Renaissance Farr30 class

sailing boat will spend another

month on the French coast in the

Tour de France a la Voile, one of

the major annual sailing races,

before returning to Oman and

benefit the students of Oman

Sail’s schools once the tour is

over.

An article written on a website

called www.sailinganarchy.com

that has a very large European

and American sailing audience

had this to say about the

Renaissance team (see next

page):


Ask yourself a question: When was the last time you saw this kind of racial mix in a photo

of the winning team at a major grand-prix one-design event?

Assuming that the answer for 99% of you is "never," it's a sad commentary on the lack of

diversity that exists in our sport, but that's even more reason to celebrate this photo of Oman

Sail's victory over 19 other boats at the recent Grand Prix Atlantique de Pornichet. This ain't

no slacker regatta, either; these teams are prepping for the last ever Tour de France à la

Voile in the Mumm/Farr 30, and they're peppered with talent. We're not saying the five Oma-

nis on Oman Sail’s Renaissance are rock stars yet, either - after all, VOR super-stud Rob

Greenhalgh ran the boat while Melges 24 rock star and TdF vet Cedric Pouligny drove - but

clearly, their instructors down in Muscat are doing something right!

Actually, they're doing a hell of a lot right, and right now Oman Sail is, without a doubt, the

model of how to go about forming a national sailing program with laser-beam focus and

clear goals - we even hear that National Governing Body reps from a handful of other coun-

tries have been in touch with Oman Sail for advice on how to freshen up their own programs.

Great news from a great program, and we'll be cheering for them in the upcoming Tour. We'll

also be cheering for past SCOTW Deneen Demourkas and the Groovederci kids, who fin-

ished 3rd at Pornichet.

The unique partnership and support that Ren-

aissance has provided to Oman Sail in various

aspects reflect our continuous commitment in

developing young Omanis and engaging them in

programmes that enhance their personal and

professional skills. Renaissance will be spon-

soring three programmes with Oman Sail in the

upcoming month, including the Clipper Race,

Tour de France a la Voile and a Sailing School

Summer Camp. More details to follow soon.


Renaissance: Safe, Efficient, Green, LocalDear Colleagues,

In my most recent circular to you (SRT Renaissance Management Series 016 –

Renaissance: Safe, Efficient, Green, Local), I continued to plug a consistent theme

that our oil & gas services should be focused on assisting our customers, the oil & gas

producers, in the task of driving down unit cost of production of a barrel of oil. The

equivalent objective may be set for all customers in their respective sectors, be it

health, education, commerce, military etc. Delivering lower cost to customers should

not come from our profit, but from our efficiency. Efficiency may come in part from our

‘safe’ agenda, where our ethos is that safe operations are the most efficient

operations. Or in part from our ‘local’ agenda, where we shorten the supply line of

goods and services that we consume to be as local as quality specifications and

standards will allow. But in the main, efficiency will come from our efforts to square

the seemingly mutually exclusive agenda to deliver higher standards at lower costs.

The latest edition of ‘The Economist’ has a special report which supports this

notion with the following observation, which says: Management gurus are always

glibly proclaiming business revolutions. But 30 years ago one certainly happened.

Corporate America woke up to discover that Japan had overtaken America to

become the world's leading car producer - and it had done so not through cheap

labour but through "lean manufacturing". Soon every factory around the world was

lean - or a ruin. ‘The Economist’ special report argues that a comparable revolution

is taking place in the developing world. Emerging countries are no longer content to

be sources of cheap hands and low-cost brains. Instead they too are becoming

hotbeds of innovation, producing breakthroughs in everything from telecoms to

carmaking to health care, redesigning products to reduce costs not just by 10%, but

by up to 90%.

In our ‘Safe, Efficient, Green, Local’ agenda, I make the point that by ‘efficient’ I do

not necessarily mean the cheapest, but I do mean always the most cost-effective

solutions for our customers. So I once again urge all of us to constantly strive to

develop our Marine, Engineering and Contract Services solutions to realize the

business revolution referred to in ‘The Economist’ for our respective industries and

markets. The Renaissance orchestra has been playing variations on this theme for

many years, recognizing that as reserves of cheap oil decline, the oil & gas industry

will need previously unimagined innovation and efficiencies to make the expensive

hard-to-get-at oil economically viable. Any service provider who becomes part of the

efficient energy solution, rather than remain part of the high cost problem, will inherit

the future. Throughout this great group of ours we have people with the talent, energy

and commitment to innovate and seize that opportunity.

Stephen R. Thomas

CEO

Renaissance Services SAOG

messageCEO

from

the

“The Renaissance orchestra hasbeen playing variations onthis theme for many years,recognizing that as reserves

of cheap oil decline, the oil &gas industry will need previously unimagined

innovation and efficienciesto make the expensive hard-

to-get-at oil economically viable.

”The Channel - issue 13 - June 2010

SAFE

Topaz wins silver RoSPA safety award

SAFE

Safety for the Storm

As Cyclone Phet approached the north-eastern

coast of Oman, Renaissance operations in Oman’s

interior and coastal cities had emergency plans

ready and at hand, in addition to corporate advisory

sent out from the CEO. A contribution from Joseph

Placid, Project Manager in the Contract Services

Group operations in Sur – one of the worst hit

localities in Oman – shares the precautions taken,

and photos of the ensuing flooding.

In brief, we had an emergency meeting at

contract holder's office to brief on arrangements

to be in place - lessons learned from Cyclone

Gonu:

Topaz Marine MENA has

recently won a coveted

2010 Silver Award from the

Royal Society for the

Prevention of Accidents

(RoSPA) at the annual Occupational Health and

Safety Awards. Topaz Marine MENA, a first time

nominee, joined the ranks of international compa-

nies in the public and private sectors that were

recognized for excellent occupational health and

safety management systems. The RoSPA Awards

promote good health and safety as a fundamental

part of good business.

In 2009 the Topaz Marine division reported zero

Lost Time Incidents as a result of the company’s

focus on HSE. Topaz operates a rigorous

systematic training and empowerment program to

ensure that all staff actively participates in the

development of ongoing improvements to an already

well-established safety system.

The Royal Society for the Prevention of Accidents

is a registered charity with a core focus on accident

prevention in the UK and the rest of the world.

Founded in 1917, RoSPA has a long history of

successful campaigning on issues which have the

potential to save lives and reduce injuries in a broad

range of industries. The award ceremony, sponsored

by NEBOSH, was attended by 3,000 people and

took place over three days in the UK.

Ensuring enough stock of all food stuff and

consumables

Ensuring all staff is stationed at work place -

restricting staff movements

Vehicles are filled fully with fuel and drivers

on stand by

Emergency focal points for all operational

areas were given responsibilities and tasks

Communication through security radio

established

24 hour medical team arranged

Maintenance emergency team mobilised - to

attended power / water failure

All furniture / assets moved to higher

grounds to prevent damages

All unwanted power supplies switched off

Standby diesel generator / emergency lights

/ torch / candles were provided to all sites

All staff briefed not to panic and remain calm

With all emergency procedures in place we

prevented human causalities and kept asset

damages to a minimum. By the grace of God, all

my staff are safe and in good health, and I take

this opportunity to thank our operation manger,

procurement department and all at CSG for their

support throughout this difficult time.



GREEN

Oman Green Awards first for the nation

OER organizers with guests at the reception

Sponsors and supporters receiving tokens of appreciation from

HH Sayyid Tarik bin Shabib, Director at Renaissance, and

Sandeep Sehgal, CEO of Media Communication Group

Recipient of Green Habitat Award winners, Muriya Tourism

List of Winners:

Green Campaign of the Year

Winner - Haya, Oman Waste Water Company

Special Commendation - Muscat Asian Beach Games

Organising Committee

Green Champion Award

Winner - Pravin Amudan

Special Commendation - Ojas Bhatia

Green Landscape Award

Winner - Al Nahda Resort & Spa

Special Commendation - Gardening World Oman

Green Guardian Award

Winner - Six Senses Hideway Zighy Bay

Special Commendation - BankMuscat

Green Footprint Award

Winner - AES Barka Power and Desalination Plant

Special Commendation - V-KOOL Oman

Special Jury Awards

Port of Salalah

Petroleum Development Oman

The Green Innovation Award

Winner - Crowne Plaza Sohar

Special Commendation - GoPoint Ta’meer

The Green Research Award

Winner - Sultan Qaboos University

Special Commendation - Mitsubishi Corporation

Green Habitat Award

Winner - Muriya Tourism Development Company

Special Commendation - National Pharmaceutical

Industries Company

Green Education Award

Winner - Indian School Nizwa

Special Commendation - ABA – An IB World School

Public Choice Award

Winner - Bahwan Engineering Company

Special Commendation - Cartridge World Oman

The first National Environment Awards – Oman

Green Awards was held at the Barr al Jissah Resort

& Spa on 12th June, 2010. The work of companies,

institutions and individuals who have shown

remarkable environment vision were showcased at

the function. The Guest of Honour, HE Sayyid

Hamood bin Faisal al Busaidi, the Honourable

Minister of Environment and Climate Affairs and

HH Sayyid Tarik bin Shabib al Said, Editor-in-Chief,

Oman Economic Review handed over the awards to

the winners. Sandeep Sehgal, CEO, UMS and

Lamees Daar, Executive Director, Environment

Society of Oman, set the tone for the evening by

focussing on the imminent threat to the environment

and solutions in their respective speeches. An audio

visual presentation captured the enormity of the issue

visually. The decor, menu and ambience were in line

with the green theme, enhancing the evenings

experience. The complete work of the winners of

Oman Green Awards can be seen on

www.omangreenawards.com.

Renaissance has recently sponsored an original charity event to raise funds for autistic children in Oman.

Inspired by Dustin Hoffman’s autistic savant character in the film Rain Man, the event was organized around a

Sudoku competition where the Chief Guest was George Widener, one of the few gifted autistic savants of the

world (there are just around 100 known savants in the whole world!). Savants are autistic but intellectual geniuses

and can compute faster than a computer/calculator. The following advertisements were published in conjunction

with the event.

LOCAL

CSR: Raising awareness on Autism

GREEN

Saving Energy: Together, we can make a big difference

“Sometimes, especially around deadlines, we have one

or two designers working till 8 or 9 pm. All the lights on that

floor, over every desk, were switched on for these one or

two persons because there was only one switch for the

whole department. It was a lot of electricity and bulbs being

wasted,” explains Office Green Team member Rekha Nair,

Executive Assistant to the CEO at United Media Services

(UMS).

Around the conference table, other Green Team

members express similar incidents at their floors and

departments. It is a common occurrence in most offices.

What is uncommon, though, is that Rekha called in the

electricians to review and alter all light switch circuits to

create independent light switches for each work station at

UMS. She ensured the office went two steps further: first,

the bulbs were changed to lower wattage energy saving

bulbs; then, an internal campaign was launched urging

employees to turn off light switches when leaving their

work station, or even for other colleagues who had

forgotten to do so. Savings amounted to 50 Rials (US$

130) in the first month.

Green Team member Mohan Shetty relays a different

story on a paper saving initiative at his office in the

Personnel Department of the Contract Service Group

(CSG), “We connected all the computers to a central

printer which was also the photocopying machine. Not

only did we reduce the use of print and toner cartridges,

but we also saved on costs when the individual printers

were given to offices in the interior that needed them.”

“We’re investing in a fax machine that routes incoming

faxes to a computer and receives a soft copy of the fax,”

adds Simon Lobo, describing a project underway at the

Finance Department of CSG. “The savings on paper are

considerable. Sometimes one of our branches will send a

project report of about 25 pages, but my requirement is

only 3 or 4 pages of the whole document. By printing what

I need and keeping the rest on digital record, we’ll be

saving a lot of paper, ink and filing space.”

The OGT is currently pooling electrical and stationary

bills to calculate the savings resulting from these green

initiatives. If you would like to get an OGT started at your

location, please contact Renaissance Corporate

Communication Manager Hala Srouji: [email protected]


Renaissance signed a new agreement with

Microsoft Oman to update the company’s

software and solutions for all Renaissance

companies across Oman. Soon, all desktops will

be upgraded to the latest Microsoft 7 software and

applications, and employees will also receive

benefits including home use programs, 24/7

support, and technical training among others. First

stage meetings between respective IT

administrators of Renaissance businesses and

Microsoft Oman’s implementation staff have taken

place throughout May, with implementation

scheduled to take place within the coming weeks.

This agreement falls in line with our

“continuous improvement” credo and quality

assurance culture, which is essential to improving

our systems and empowering Renaissance

people with the best available resources.

Renaissance signs deal with Microsoft Oman

Renaissance has contributed a total of

250,000 Rials (US$ 650,000) over three years

towards 45 Omani students enrolled in Nizwa

University’s diploma programme for special

education as part of an agreement with the

Association of Early Intervention for Children with

Disabilities.

The graduating teachers from the special

education diploma programme have secured

contracts for employment with the Association of

Early Intervention and other educational

institutions enrolling children with special needs.

LOCAL

CSR: Association of Early Intervention

The Office Green Team (OGT) is a new initiative started

at the Renaissance Services group headquarters in Muscat,

Oman. A team of volunteers are nominated by management

to meet once a week for a business quarter in order to

discuss, record and plan simple green initiatives at that

location. At the headquarter office the five volunteers for the

first OGT hail from different groups and departments.

During each meeting, the members present a progress

report of initiatives taken at their respective department with

practical examples and ideas to take their initiatives forward.

The primary objective of the OGT is to communicate the

existing energy saving systems and processes at each

location. Many of our companies are running energy and

resource saving programmes as part of their respective

efficiency, quality assurance or local content programmes.

With increased awareness and communication, groups will

be able to identify and label the parts of these programmes

as “green” or eco-conscious initiatives.

GREEN

Office Green Team

Rekha Nair (Corporate Office, MCG), Hala Srouji (Corp. Office,

Renaissance), Simon Lobo (Finance Department, CSG),

Monyca Giles (Corp. Office, MCG), not pictured Mohan Shetty (HR

Department, CSG)


the channel

Documents

renaissance signs deal

chairmans report

positive q1 performance

net profit of q1 results

quarter q1

q1 of2009

revenuesof us

company website