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The Channel
A Renaissance Services SAOG Group Newsletter
volume 1 issue 12
Renaissance Q1 Results
www.renaissance-oman.com
Renaissance discloses 10% plus growth in net profit of Q1 results.
Also Inside:
Topaz Marine MENA wins silver RoSPA safety award Topaz Marine MENA, a first time nominee, joins the ranks of international companies in the public and private sectors.
Oman Green Awards Oman’s government agencies, businesses, NGOs and institutions partake in the country’s first green award function.
Safety for the Storm Joseph Placid, Project Manager at CSG operations in Sur, shares the emergency procedures in preparation for Cyclone Phet.
Early Intervention donation Office Green Team Renaissance signs deal with Microsoft Raising awareness on Autism New Renaissance sailboat
Upcoming events: Q2 results Oman’s 40th Renaissance Day
Topaz Energy and Marine 2009 Annual Report
The Channel is a digital 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!
The latest Topaz Annual Report is available in English through the company website:www.topazworld.com
Renaissance discloses 10% plus growth in net profit of Q1 results 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).
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 stakeholders. 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 Channel - issue 13 - June 2010
Topaz complete berth construction 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 precommissioning. Bill Bayliss, COO of Topaz
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.
Topaz Fabrication and Construction awarded contract Gulf Petrochem has awarded Topaz’s Fabrication 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 management, engineering and development consultancy with over 14,000 people, has been appointed project management consultant to oversee the development. The dock pipeline will feature
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 Channel - issue 13 - June 2010
The R ena is s a n ce Far r 30
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 experience 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):
The Channel - issue 13 - June 2010
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 Omanis 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 countries 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 finished 3rd at Pornichet.
The unique partnership and support that Renaissance 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 sponsoring 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.
The Channel - issue 13 - June 2010
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Renaissance: Safe, Efficient, Green, Local Dear 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.
“ ”
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 hardto-get-at oil economically viable.
Stephen R. Thomas CEO Renaissance Services SAOG The Channel - issue 13 - June 2010
SAFE Topaz wins silver RoSPA safety award 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 companies 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.
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: 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. The Channel - issue 13 - June 2010
GREEN Oman Green Awards first for the nation 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.
OER organizers with guests at the reception
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
Sponsors and supporters receiving tokens of appreciation from HH Sayyid Tarik bin Shabib, Director at Renaissance, and Sandeep Sehgal, CEO of Media Communication Group
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
Recipient of Green Habitat Award winners, Muriya Tourism
The Channel - issue 13 - June 2010
LOCAL CSR: Raising awareness on Autism
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.
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: hala@tawoos.com The Channel - issue 13 - June 2010
Renaissance signs deal with Microsoft Oman 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.
LOCAL CSR: Association of Early Intervention 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.
GREEN Office Green Team 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.
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 - issue 13 - June 2010