Monday, March 7, 2011

Renaissance posts audited financial results and Chairman’s Statement

Plans of IPO listing in the London Stock Exchange expected to raise USD 500 million for its Largest Subsidiary, Topaz Energy and Marine
Dubai, UAE - 7 March 2011: Renaissance Services SAOG, a leading Omani multinational oil and gas services provider listed on Muscat Securities Market (MSM30), has declared to the Muscat bourse record financial results and presented the details of an initiative to publicly list the company’s largest subsidiary, Topaz Energy and Marine LLC, on the London Stock Exchange (LSE).
Samir J. Fancy, Renaissance founder and chairman, said in his statement to shareholders that the company was at the threshold of a “transformational change” and described the opportunity as a “seminal moment”.
In the statement, the Renaissance chairman wrote, “At the start of the global economic crisis, I wrote to you that we shall not waste this crisis – we have not. We emerge with our reputation sustained and enhanced and the value of Topaz is expected to be recognized in a market where scrutiny is forensic and unforgiving.”
Renaissance has accomplished ten years of consecutive record growth and the prospect of listing on the LSE could raise approximately Rial 192 million (US$ 500 million) in a primary offering. Fancy added in the statement, “For the IPO transaction itself, I ask you to entrust the Board to pick the optimal time and be assured we shall only agree an appropriate value that is fair to Renaissance shareholders and to the new investors.”
The statement added that staging a second offering would provide “an adequate level of free float of the Topaz Listco [listed company] shares”.
In comparison with the same period last year, Renaissance’s revenue increased by more than Rial 5.8 million (USD 15 million) to post at Rial 253.4 million (USD 658.3 million), and net profit after tax is at Rial 32.3 million (USD 83.9 million), which increased by 13.3%.Profit from operations increased by 20.2%.
Renaissance Chairman Samir Fancy said in his annual statement to shareholders that “our company is a child of Oman’s Renaissance”. Asked what he means by this, Fancy expands: “We have learnt our business skills here in Oman. We have whittled and honed our operational knowledge in Oman’s oilfields. We adopted world-class business practices here and when we took our skills and competences overseas, we found that we are internationally competitive. That bears great testament to the commercial and regulatory environment here in Oman. This country gave us a platform to develop at home and succeed abroad in competition with some of the best companies in the world. In this sense, it has come as no surprise to people here at home that Topaz is fit and ready for a premium listing in London. It is a special moment to know that Renaissance, as an Omani-listed company, has nurtured a potential FTSE-listed company. It is symptomatic of how far Oman’s modern Renaissance has come.”
The Chairman also said that the company would continue to invest in the oil and gas industry for the long-term, based on the growing energy demand of super-economies such as China and India, and based on the outlook that economic growth will return.