The Channel issue 4 by Renaissance Services SAOG

July-August 2009

A Renaissance Services SAOG Group Newsletter

Renaissance publishes half-year results, shows growth

Renaissance continues to demonstrate attributes of stability, resilience and growth against a backdrop of ongoing global financial and economic turbulence, and the effects are clear to see in the financial half-year results. The company announced its unaudited half year results last week, reporting a revenue of RO 116.6 million (US$ 302.9 million), a 7.6% increase against 2008 revenue of RO 108.4 million (US$ 281.5 million). In comparison with the same period last year the company’s profit from operations has increased by 10.1% to RO 17.4 million (US$ 45.2 million) in 2009 against RO 15.8 million (US$ 41.1 million) in 2008, and operating margins have improved from 14.6% in the previous period to 14.9% in the current period. No economy, no market and no industry can be immune to the impact of the global economic slowdown. However, the primary markets in which we serve and the Renaissance business model continue to prove resilient in mitigating the impact.

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Inside

Topaz launches renovated website... PAC Nimr celebrates Safety Milestone... new business school launched... construction progress in Bahja... Seatbelts do save lives... new contract for Topaz...all inside!

From the Chairman’s statement … Our people in all our businesses have shown great ingenuity in driving efficiency and prudent control for the benefit of our customers and our own company performance. The continued positive progress of our company in such difficult times for the world economy is a source of great reassurance for all our stakeholders in the short-term and a reason for enduring confidence and optimism for the long-term future.” Samir J. Fancy, Chairman of Renaissance Services SAOG

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CEO message

In brief

August – ‘Renaissance’ racing catamaran came in third overall at the 4th leg race in Cowes, UK. Organisers estimated that there were at least 1,000 spectators watching from the shore line daily. Both Oman Sail teams, the Renaissance and Masirah did well at the races. For more info visit www.omansail.com August – Holy month of Ramadan begins. please visit www.renaissance-oman.com

Renaissance Values

Efficiency & Productivity We commit to continually improve our systems, our methods and our facilities so that our costs will be as low or lower and our quality as good or better than our competitors.

Crisis = Danger + Opportunity I have never seen a crisis in any of our businesses at Renaissance that we didn’t come out of wiser and stronger. As leaders it is essential that we do not buckle in a crisis, but meet it head-on with confidence in the ability of our team to resolve it. Consider this passage from Ian Gardiner’s ‘In the Service of the Sultan’: ► Both men had that essential quality for all leaders of men under pressure. They gave people confidence. They gave them hope too, even if they themselves didn’t always feel much hope. ► This lies at the very heart of leadership. If people cannot feel even though things are bad and may get worse, that if they follow this particular person, then there is a real prospect of ultimate success – then that person has failed as a leader. ► There are many different styles of leadership for many different circumstances, but ultimately the boss is the banker of hope and he can never allow himself to appear bankrupt. If he doesn’t display and

internal newsletter

impart hope, then he is hopeless – a no hoper! Interestingly, the Chinese character for ‘Crisis’ is composed of two sub-characters: one that spells ‘Danger’ and another that spells ‘Opportunity’. In recognizing this simple reality, in any crisis you will be alive to danger and will take measures to avert it. But you will also be alive to opportunity, so no matter how deep the crisis you will never be bereft of hope. Stephen R. Thomas CEO Renaissance Services SAOG

Social Responsibility

Renaissance Services has helped sponsor a Nursing Students’ Internship Training Programme abroad. Graduating students from the Sultan Qaboos University (SQU) College of Nursing are carrying out two months of the college’s requisite Internship Training Programme at top university hospitals in Canada and Jordan. A total of 48 graduates, of which 34 are sponsored by Renaissance, will be exposed to the developments in clinical nursing care in foreign working environments and will bring home insights from the different work cultures. The SQU College of Nursing began sending students abroad for internships from the first graduating batch in 2006. Last year, ten graduates sponsored by Renaissance were sent to McMasters University & Henderson Hospital and St. Josephs Hospital in Canada. Students this year will be interning at the same hospitals as well as at Jordan University Hospital in Amman.

New bank funding

Renaissance and Topaz Energy & Marine recently signed term loan facilities of US$ 18.8 million (RO 7.2 million) with Noor Islamic Bank, Bank of Baroda and Bank of India. The funds go towards the post delivery financing of two new offshore support vessels that have joined Topaz Marine’s offshore support vessels fleet operating in Qatar. Noor Islamic Bank has funded a US$ 9.5 million (RO 3.65 million) five year loan facility, while Bank of Baroda and Bank of India have jointly funded a US$ 9.3 million (RO 3.58 million) facility for a period of seven years. In light of the current financial environment the new long term funding facilities illustrate the

company’s robust operations, assets and balance sheet, and reinforce the willingness of international and regional banks to partner with Renaissance. The long term facilities also match the company’s policy to fund its long term asset development with a matching long term loan profile. This cautious strategy provides reassurance during the current global economic downturn and has allowed Renaissance to acquire new investments from a safe and secure standpoint. During the last six months Renaissance has invested over US$ 100 million (RO 38.5 million) mainly in assets in its growth areas in offshore vessels fleet and building of workforce accommoda-

Topaz Engineering wins new contract

Topaz CEO Fazel Fazelbhoy and Renaissance Financial Controller Vishal Goenka with bank representatives

tion facilities in the Oman’s interior oilfields. These continuing investments for future growth are evidence of the company’s strong cash flow and full support from more than 25 banking partners that include leading local, regional and international banks. The company’s funding portfolio is further strengthened with the addition of these new bank partners.

Renaissance awarded ISO 9001-2008

The company has successfully been certified to the ISO 9001-2008 Standard. ISO 9001-2000 has now been superseded by the latest ISO 9001-2008 certification and is valid for three years.

Topaz subsidiary Nico International Hydrospace signed a 1 year contract with Vopak Horizon Fujairah Ltd. for underwater services and pre-berthing inspection and back to back berthing of vessels at Vopak in July. Topaz will provide a team of qualified and experienced divers who carry out a detailed inspection of the floating and submarine hose string and all mooring accessories and will also provide other services until the berthing is completed.

ISO 9001 is a quality management standard that applies to all types of organizations and helps the organization to achieve a standard of quality that is recognized and respected throughout the world. Renaissance is committed to Quality and this latest certification in international management standards adopts standards of quality that are worldwide. The certification ensures that our Quality Management Systems are identified, systemized, documented, implemented, maintained and improved. The company’s Quality policy is among the 12 Renaissance Values and includes a doctrine commonly heard from office to board room discussions: Never satisfied, always innovative.

HSE milestone - 9 years no LTI

Congratulations to all the team at Renaissance PAC Nimr for an outstanding achievement of 9 years with no Loss Time Incident (LTI). We are extremely proud of this great milestone for PAC Nimr. At Renaissance our top priority in the conduct of our business is Goal Zero – no harm to people or the environment. This PAC’s record is a true inspiration to us all in pursuing Goal Zero. We wish you all success in applying even greater focus to safety and all the objectives of our HSE policy. Keep on striving to exceed customer expectations safely and efficiently.

Fujairah, situated on the Gulf of Oman near the mouth of the Gulf, has been the base for Topaz’s underwater services in the Middle East since 1981. Topaz’s fully equipped team of divers can join vessels and installations at short notice anywhere in the Gulf of Oman or in the Arabian Gulf to carry out all types of underwater work. In support of its diving operations, Topaz has purpose-built a high speed catamaran aluminium workboat called ‘Nemo’, a diving support vessel utilized to carry out daily routine diving operations. The diving team in Fujairah consists of 25 experienced and qualified personnel who are trained according to the International Marine Contractors Association standards. This year the team has recovered 14 lost anchors and chains, some of them weighing 140 tons, from the depth of between 94 to 135 Meters with successful delivery back to the owners.

PAC Progress - Marmul

The Contract Services Group has been committed to its mission in completing its PAC projects in Bahja and Marmul with all three components of safety, time and cost intact. In the last issue of The Channel we reported the progress made to PAC

Gulf School of Business launched

Marmul. In this issue we’re pleased to showcase the construction progress made at PAC Bahja, with both PAC projects looking ready to be completed on schedule.

Topaz launches new website

The Education and Training business line of Renaissance has ventured into the establishment of a new management school in the Sultanate of Oman, named the Gulf Business School (GBS), with its first programme starting in October 2009. The launch was announced to local press in August with details of its tailor made business programmes that will offer applicants the opportunity to apply their academic knowledge in practical situations. The first programme is titled, “Programme in Practicing Management’, and is a part-time course spanning just 10 weeks. Longer term programmes which will be offered over five years include post-graduate programmes in practicing management. GSB’s faculty has diverse experience with worldwide teaching exposure and sourced from distinguished universities in the UK, Europe and India.

Topaz has renovated its website with a remodeled look and added pages of pertinent information. The website sections capture the rebranding structure and appearance, as well as segments on QHSE, Topaz People and key financial figures for Investors. Please visit www.topazworld.com

NHI hosts Scouts Chef’s Badge

National Hospitality Institute (NHI) hosted a local Scout Troop recently at its Gulf Chef School providing face to face training on food safety and helping the troop to achieve their Chef’s Badge. NHI invited executive chefs from Muscat’s top hotels to impart their knowledge on how and where to shop for food and how to transport it; and proper storage and cooking with knowledge of hygiene in the kitchen and food poisoning prevention. To receive their badges, the little chefs created, cooked and served a three-course meal at NHI including two cooked dishes, a cake or pastry dish and two sauces. “It is a truly enjoyable experience for these young aspiring chefs and NHI will continue to support the development of culinary skills amongst the youth in Oman”, said Rob MacLean, NHI Principal.

Feedback

Let’s Hear from You! Please send your ideas, comments, suggestions, stories, pictures and the like to Corporate Communication Manager, Hala Srouji, via email: hala@tawoos.com or phone: 24796636 (ext.303) Thank You!

Seatbelts do save lives

A TISCO delivery truck had a dangerous brush with what was potentially a severe accident, when a tire blowout caused the truck to roll over 90º and into a hazardous area.

Awareness

Many of us drive on a daily basis and hardly pay any attention to one of the vehicle’s most vital parts- the tires. Studies show that most of us don’t change our habits and check tires until disaster strikes us or someone we care about. Get to know what some of the numbers in your tire stand for. Tires expire 4 years AFTER the date of manufacture- the week and year of manufacture are stamped in the side of all tires.

Another important point is tire pressure: near the rim you will find a maximum pressure number marking near the letters PSI, usually either 32 PSI, 44 PSI or even 50 PSI. You can have your tires a few pounds below pressure- but not too much.

The delivery truck was travelling from PAC Fahud to PAC Qarn Alam when the front tire burst and the driver struggled to control the truck, causing the truck to go off the road and into a rocky surface.

Other actions that affect your tires are: Too much load in your vehicle High speed, especially on hot roads, damage tires Improper breaking on wet roads Having wrong tire size or specifications for your vehicle Make sure you always ask a credible source to check your tires. Drive safely, and live safely.

By wearing their seat belt correctly the Driver and Helper were able to walk away from the vehicle with no injuries! Staff members of TISCO were shown the photos the next day with the message that seat belts saved our people from harm.

Publications

Renaissance has published its half year results in Oman’s Daily Observer and Daily Arabic newspapers. The English and Arabic full version advertisements can be viewed and downloaded on the company website: www.renaissance-oman.com

Vision… Creates Opportunities

Renaissance published a bilingual advert in July honoring His Majesty Sultan Qaboos bin Said for his visionary leadership and saluting the Sultanate and its people on the 39th Renaissance Day. The ad appeared in the 15th edition of Progress, a United Press & Publishing publication and widely acclaimed Renaissance Day book, as well as in the July issue of Alam Aliktisaad Wala’mal. You may also view the ad both front and back from the company webpage: www.renaissance-oman.com

Awareness

Symptoms of Swine Flue: ► Fast or troubled breathing ► Bluish skin color ► Refusal to drink fluids

► Difficulty waking up or interacting ► Irritability ► Flu-like symptoms improve but then return with fever and severe cough

► Fever with a rash, especially one that does not subside Please maintain precaution and report to a doctor if you sense any of these symptoms: