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The Channel
A Renaissance Services SAOG Group Newsletter
volume 2 issue 1
2010 in headlines
www.renaissance-oman.com
A review of the top stories and highlights of 2010.
Also Inside:
New year, historic projects
Financial News Bites
Two new construction projects tendered by Renaissance’s Contract Services Group reflect a leaner, greener outlook on the future.
CSR in headlines
Topaz Marine awarded US$48m contract with Maersk Qatar The offshore support vessel Topaz Shaheen will serve as a standby support vessel for Maersk Oil Qatar.
Renaissance acquires Al Wasita Emirates UMS signs 3-year contract with PDO
First Corporate Governance Excellence Awards TISCO awarded for Omanisation MEED Quality Awards Topaz Engineering Training IMCO marine cadets
RNSS.OM a top performer Renaissance named a star performing stock for 2010 on the Muscat Security Market.
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!
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Financial News RNSS.OM a top 2010 performer Renaissance ranked in the star-performing stocks for 2010 on the Muscat Security Market (MSM30) with its share price climbing 45.9 % as the year drew to an end. Renaissance Services closed 2010 at Rial 1.108 against 2009 closing price of 765 baisas. Leading brokerage firm Gulf Baader Capital Markets said in its year-end research note that Renaissance’s 12 per cent cash dividend and 44.8 per cent capital appreciation resulted in a 46.4 per cent return per cent for investors. The Omani bourse was the third best performing bourse in the Gulf region in 2010 after Qatar and Saudi Arabia, with the MSM30 general index gaining 6.1 per cent.
Renaissance acquires Al Wasita Emirates Renaissance announced in December the acquisition of Al Wasita Emirates for Services & Catering LLC, an industrial services and catering business based in Abu Dhabi, which will fall under the company’s Contract Services Group (CSG) umbrella. Al Wasita Emirates, which operates from Abu Dhabi, Dubai, Ras Al Khaimah and Fujairah provides up to 26,000 meals per day, and raises CSG’s total meals per day to 165,000. The acquisition supports CSG’s growth plans in the Emirates and reinforces the UAE-based joint venture announced in November under the name Renaissance Facilities Management Services LLC. Renaissance and Al Wasita executives at the signing
Topaz Marine awarded US$48m contract with Maersk Qatar Renaissance Services subsidiary Doha Marine Services, under the umbrella of its Topaz Marine group, has been awarded a five year vessel contract with five one-year options estimated to be worth US$ 48 million (Rial 18.5 million) including the option period, with Maersk Oil Qatar. Under the contract the offshore support vessel Topaz Shaheen will serve as a standby support vessel for Maersk Oil Qatar in the Al Shaheen Field in Qatar.
UMS signs 3-year contract with PDO Petroleum Development Oman (PDO) awarded Renaissance subsidiary United Media Services (UMS) a three-year integrated media services contract for publishing and design services. PDO is a major oil exploration and production company in the sultanate and accounts for 70 percent of the country’s crude oil production and nearly all of its natural gas supply. UMS was established in 1988 and is among Oman’s largest communications and media agencies. The Channel - issue 1 - Jan - Feb 2011
2010 in Headlines Stephen R. Thomas, CEO of Renaissance, awarded Order of the British Empire 2 Topaz Engineering completes berth extension project
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Renaissance announces record preliminary results; total revenue touches Rial 248 million (US$ 644.8m)
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declares dividend and holds its 14th AGM 5 Renaissance participates in BankMuscat investor conference for Oman’s top 15 performing companies Marine deploys Caspian Protector to Azerbaijan in support of a 10-year, Rial 86.5 million (US$ 225m) contract with oil major BP 7 Contract Services Group honors longserving employees
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signs agreement with Microsoft Oman to upgrade all company software 9 Renaissance results show steady growth, strong fundamentals
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Engineering wins US$ 45M EPC contract with Gulf Petrochem 11 UMS creates and hosts first Oman Green Awards
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Marine acquires Topaz Commander, an 84-meter MPSV, under contract with ADAMS Offshore
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secures Rial 38.5 million (US$ 100m) term funding with local partners Bank Dhofar, BankMuscat and NBO
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Engineering delivers gigantic offshore oil & gas project
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Engineering awarded US$100m EPC contract to construct an oil storage terminal in Fujairah for client GPS Chemoil 16 Renaissance enters into Abu Dhabi JV for Contract Services 17 Contract Services Group is appointed Master Caterer for Muscat Asian Beach Games 2010 18 Renaissance issues the company's first mezzanine financing offer; fully subscribed by Omani investors 19 Contract Services Group expands in UAE with acquisition of Al Wasita Emirates for Services & Catering
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The Channel - issue 1 - Jan - Feb 2011
Feature Story New year, historic projects Contract Services Group embarks on contemporary construction projects
Renaissance’s Contract Services Group (CSG) is commencing the new year with two new projects that will stand out and reflect the company’s growth for the era to come. CSG, which in 25 years has seized market leadership in Oman for facilities management and establishment, contract catering and , is in the final stages of project tendering and will soon be announcing the award of contract and initiate construction of a 10,000 square kilometer state-of-the-art Logistics Center and another 11,000 square kilometer Accommodation Building in Oman’s capital. CSG has worked closely with the COWI group, a leading northern European consulting group for engineering, environmental science and economics, on the design of the projects. COWI was founded in 1930 and have been involved in more than 50,000 projects in 175 countries. A lot of expertise has gone into the design and planning stages of the projects and will continue throughout the construction phase. Keeping in line with the Renaissance mantra, HSE and quality first, the emphasis on quality and HSE standards has been initiated from the design stage and a key requirement for tendering companies. Since the Logistics Center will store food products, HSE and temperature controls need to be immaculately considered, and the center’s loading docks have been designed to HACCAP standards and
Environmentally-friendly design: A lot of natural light and LED lighting to consume less electricity Insulation to reduce the need for cooling and heating Recycling areas Water-saving measures Specialized areas for chillers and loading docks Sealing capabilities for offloading and loading so that the temperature is identical to the storage
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European legislation for logistical requirements. While reviewing the tenders, HSE qualifications, levels and standards of the shortlisted companies have been closely reviewed for technical and commercial capabilities. Environmentally-friendly design has also been thoroughly considered and the projects are designed with the objectives of efficiency in water, electricity and waste reduction. These significant projects will reflect the scale of growth of CSG’s operations as the company consolidates its procurement departments, which are currently operated from various locations around the sultanate, to a centralized and modern Logistics Center, as well as constructing an Accommodation Building for company employees for the first time.
The Channel - issue 1 - Jan - Feb 2011
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10 Business Lessons from the World Cup Dear Colleagues, When Spain’s national soccer team became world champions for the first time at the World Cup 2010, team captain Iker Casillas acknowledged that their awareness of people back home “going through bad times” had served to strengthen their resolve to win. In his working paper, “Business Lessons From the Soccer World Cup,” IESE Prof. Pascual Berrone analyzes the key features of the team’s success, and suggests 10 ways in which business owners and managers can likewise raise their own game by learning from this example.
Extracts from a study published by Professor Pascual Berrone 1. Collective pride instead of individual egos. Soccer, by nature, requires teamwork. While big egos are common, long-term success is built on a strong team ethic. Some teams bank on the ability of one star player. Spain stood out for its feeling, not only that all the players were important, but that no one was indispensable either. Companies should remind themselves that teamwork and group pride are essential for success. 2. Balance between youth and experience. The Spanish team, with an average age of 26, had just the right mix of talented youth and more experienced players. Teams that rely too much on youth often lack the experience needed to flourish. On the other hand, older teams – such as Italy’s 2010 side – are unable to withstand the physical demands of the tournament. For companies, having a balanced team enables constant rejuvenation, the transfer of knowledge from seniors to juniors, and takes advantage of youthful irreverence and elder wisdom. 3. Solid leadership. One essential part of Spain’s success was its 60-year-old national coach, Vicente del Bosque, who brought discretion, calmness and patience to the role. Firms, like soccer teams, often struggle due to an absence of strong leadership. Perhaps one of the greatest challenges of this century will be finding gifted leaders who are willing to break with the traditional practices of long-tenured executives. 4. Dream big and believe in it. Coverage of the World Cup consistently reported on the Spanish players’ high level of self-belief. Of course, dreaming big does not, by itself, guarantee a big win. What made the difference was that, for the first time ever, Spanish players seemed to think the dream was attainable. The same goes for companies. In order to develop a genuine dream for the company, there must be a shared mission that is bold and big on passion, yet grounded in reality. 5. Internationalization and professionalization. Spanish teams have traditionally relied on attracting the finest foreign players as a means of reaching the highest levels of competition. This, in turn, forces local players to raise their own game. This virtuous circle of professionalization has had a huge, positive effect on the national team’s technical level. Frequently, certain firms – family businesses, in particular – tend to avoid the professionalization process, because they fear change. As a result, they miss out on potential benefits, including enhanced performance and greater longevity. 6. Leverage competition. Decades of fierce competition between Spain’s two biggest clubs, Barcelona F.C. and Real Madrid, have led to higher levels of competitiveness, both at the club and international level. Indeed, Barça and Real Madrid accounted for more than 50 percent of the players in the Spanish squad. It is often forgotten that competition can have positive effects on company
performance, leading to more innovation, productivity and growth. As former Pepsi CEO Roger Enrico once said, “If Coca-Cola didn’t exist, we’d pray for someone to invent it.” 7. Faith in strategy. Spain’s fast-paced, creative style of play meant it could pick other teams apart with relative ease. More importantly, Spain – unlike the other teams in the competition – always kept the same style, regardless of circumstances. Firms, like soccer teams, must accept that good strategies often take time to crystallize. Results don’t always come with the first try, and patience is vital in achieving long-term goals. 8. Ability to overcome adversity. Spain is the first country to lose the opening game and still go on to win the World Cup. This was the result of strong morale, a collegial atmosphere and a profound passion for what they were doing. Disappointing results are just as common in business, but you can overcome them, if you have passion. 9. Do not let dependency dictate your future. After so many decades of World Cup disappointment, the Spanish team could have been forgiven for succumbing to defeatism. But while history matters, past results are not necessarily good predictors of future performance. Business executives need to challenge the belief that path dependency is hard to break, and acknowledge that experiences from the past are not necessarily the best recipes for the future. 10. Societal support. A key external factor in the Spanish team’s triumph was the strength of the support it received from the general public. This support was based largely on the victory at UEFA Euro 2008, which gave people reason to believe that bigger things were possible. Social acceptance is equally important for companies. When firms conform to social expectations, the broader public grants its acceptance, allowing the company better access to resources, improved exchange conditions with its partners, better ability to innovate, and enhanced corporate image and reputation. There are many fine teams in the Renaissance family – in every business group, line company, division and department. Each team has its own unique characteristics, but each may draw some valuable lessons from the interesting insights arising from Professor Berrone’s study.
Stephen R. Thomas CEO The Channel - issue 1 - Jan - Feb 2011
Company News committed to the local workforce Renaissance trains cadets at IMCO
Renaissance Services’ Topaz Marine subsidiary has utilized its long standing relationship with the International Maritime College Oman (IMCO) to provide training opportunities to marine cadets from all around the world. Topaz Marine was the first company to assist IMCO by offering berths for Omani cadets since June 2008. Since then, sixteen Omani cadets at IMCO have received sea-time training, and in 2010 Topaz Marine MENA accommodated another nineteen Kazakh cadets, including two females, in its trainee programme. All cadets have completed their training at sea successfully and have returned to college in Oman for the next phase of their training. Renaissance is currently providing berths for the cadets to complete their sea time training and is on the way to providing a fully-fledged cadet program would sponsor the cadets either through the final year or through the entire cadetship.
Cadets normally complete 3 to 4 years at maritime college or university. Their first two years cover Nautical Studies (deck officers) or Marine Engineering (engineering officers). The third year is then spent at sea completing tasks set out in a Training Record Book. The Captain is required to sign the Training Record book to confirm that the cadet is carrying out and familiarising themselves with certain tasks and duties on board. Marine Engineering cadets must spend a minimum of six months at sea to obtain a diploma as Officer in Charge of an Engineering Watch, whereas Deck cadets must complete a minimum of 12 months at sea to obtain a diploma as Officer in Charge of a Navigational Watch. Following this they can then choose to go directly to sea for further on the job training, or they can complete a further year to obtain their Bachelor of Science Degree.
social responsibility Oman PACs host charity cycler South African national Tom Millward, 46, who cycled 3,000km across Oman to raise funds for the Association of Early Intervention for Children with Disability, has completed his journey in January since taking off from the capital in the second week of November. Tom had been accommodated at Renaissance PACs at Qarn Alam and Fahud in December while circumnavigating the sultanate. He started his journey from Muscat and cycled to the northern coast of the Batinah region, from where he travelled to Buraimi and rode down south to Salalah and back to Muscat.
The Channel - issue 1 - Jan - Feb 2011
Company News
2010 CSR Highlights
jan Renaissance sponsors Nabil al Busaidy on his successful expedition to climb Mount Vinson
Awards News Oman’s Capital Market Authority (CMA) organized the first Corporate Governance Excellence Awards, in which 25 listed companies on the Muscat Securities Market participated in, and awarded Renaissance Services first runner up in its sector while Shell Oman Marketing was the winner of the category.
feb Renaissance is a gold sponsor for International Association of Handicapped Divers project Renaissance among sponsors of the Sapphire Green charity ball
mar Renaissance participates in Earth Hour
apr Renaissance sponsors the “Dream your Biggest Dream” competition Oman Sail’s Renaissance team finishes in 5th place in prestigious French tour
may Renaissance finalizes its largest donation to date, Rial 250,000 to the education and training of 45 instructors for the Association of Early Intervention for Children with Special Needs
The first MEED Quality Awards recognizing excellence in engineering projects completed in the GCC rewarded Topaz’s Mobile Offshore Production Unit (MOPU) built in Adyard Abu Dhabi by Topaz Engineering in the oil and gas category.
jun Renaissance sponsors autism awareness and fundraising event
jul-aug Renaissance sponsors over 60 young Omani youths participating in Oman Sail’s Summer Sailing School programme
sep Renaissance launches Road Safety awareness campaign
oct Renaissance supports 120 Omani boys and girls from the sultanate’s various public schools on Outward Bound Oman – Tahaddi programme
Oman’s Ministry of Manpower honored CSG’s Tawoos Industrial Services Company (TISCO) with an Omanization award for the sixth consecutive year, praising TISCO’s commitment towards the recruitment of a national workforce. The Ministry of Manpower also honored Omani longest serving employees, including Renaissance corporate office employee Asma Al Dhawi. Renaissance corporate office also awarded Saad Ali, Company Secretary on completing 10 years of dedicated service.
nov Renaissance renews its support for the Muscat Rugby Club
dec Renaissance sponsors mountaineer Muna Shanfari in her mission to become the first Omani and GCC national to summit 6,962-meter high Mount Aconcagua The Channel - issue 1 - Jan - Feb 2011