The ChannelA Renaissance Services SAOG Group Newsletter volume 2 issue 4

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The Channel is a digital bi-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!

PDO Managing Director visitsPAC MarmulPetroleum Development Oman top

management tour the company’s Marmul

PAC facilities.

H2 Outlook

Future outlook forecasts for the

company’s three core businesses:

Topaz Marine, Topaz Engineering, and

Contract Services Group.

HSE first: training new recruitsin UAERFMS successfully mobilizes and

traines over 300 staff in support of new

contracts.

Also Inside:

H1 2011 Results

Renaissance Services SAOG issues its

quarterly statement for the half-year

from Chairman, Mr. Samir Fancy.

Purity…Devotion…Compassion…Kinship… May the spirit of Eid be with you al-

ways! Click on the following link to view Renaissance’s Eid al Fitr greeting: http://www.nibblesoman.com/greeting/Eidgreerting2011.htm

Progress book launched

Renaissance Day advert

CSG HSE statistics

from left: Mr. Samir Fancy, Chairman of Renaissance, and Mr. Ali bin Hassan

Sulaiman, Director of Renaissance

Renaissance discloses financial results for the 2011 half-year

Financial News

Renaissance Services disclosed its financial results and

Chairman’s Report for the half-year period of 2011. The

company achieved a 12.7% increase in revenue totaling

approximately Rial 133 million (US$ 345 million) with the

Marine Group accounting for Rial 54.5 million (US$ 141.6

million), Contract Services Group accounting for Rial 43.9

million (US$ 114 million), and Engineering Group

accounting for Rial 35.7 million (US$ 92.7 million).

Fundamental strengths of the company’s businesses were

intact despite significant challenges faced in the period.

Obstacles tackled included losses in the Engineering

business, unusual low utilisation of four major vessels in

Q1 2011 (Q1) in the Marine business, and increased

employment costs in the Contract Services business due

to a national paradigm shift in terms and conditions of

employment in Oman.

The Contract Services Group (CSG) has invested

heavily in an accelerated Omanisation programme over

and above its ongoing national workforce development

programme, at the same time improving terms and

conditions for Omani employees. While CSG increased

overall revenue by Rial 7 million (US$ 18.2 million),

operating profit of the group declined by Rial 2.9 million

(US$ 7.5 million), however the cost increases will be

gradually mitigated.

The half-year report focused on explaining the current

challenges and assured shareholders that all problems are

under control and that the company would soon be back on

a path of progress more commonly associated with

Renaissance.

The company reported that it had uncovered breaches

of ethical conduct at an international Topaz subsidiary while

potential one-off negative impact issues in Topaz

Engineering included a potential cost to the company’s

withdrawal from a loss-making MOBY boat yard operation

venture in Kazakhstan.

Stephen Thomas, CEO of Renaissance, has taken

direct responsibility as interim Topaz CEO in addition to his

Renaissance group-wide responsibilities, effectively taking

over direct management of Topaz, as distinct from its

previous holding company oversight role.

A new Topaz structure creating clear organizational

demarcation between Topaz Marine and Topaz Engineering

as separate independent businesses, the former a pure

OSV (Offshore Support Vessel) business and the later a

pure OFS (Oil Field Service) business, boosts the

possibility for the Topaz Marine business to be ready first for

listing on the London FTSE.

The company remains positive about the market

fundamentals of the oil and gas industry in which it

operates. “We can see ourselves emerging from this wiser

and leaner, ready to seize upon the opportunities that lie

ahead,” said Samir Fancy, Renaissance Chairman. “We

are getting back to business as usual, determined to

reassert the reputation for success and growth that is the

tradition and track record associated with Renaissance.”

Renaissance Services invited its sharehold-

ers, investors and all stakeholders of the public

interest to a conference with the company's

management.

The open question and answer session

addressed and responded to questions

regarding the half-year 2011 results, statements

made in the Chairman's Report, and the

present operational and financial performance

of the company and its subsidiaries.

A copy of the conference is available on the

Renaissance company website:

http://www.renaissance-oman.com/en-

GB/Media_Center/Downloads.aspx

Renaissance hosts stakeholder

conference

The Channel - issue 4 - August - July 2011

H2 Outlook

Outlook for Marine:

Topaz Marine performed positively but still below the

level expected for the investments in additional vessels,

also impacted by exceptionally low utilisation of vessels in

Q1, however independent market analysts confirms day

rates and utilisation are improving in H2 and shall remain

strong in 2012. There remains opportunity for further growth

in the company’s existing markets of the Caspian and

Outlook for Engineering:

The Engineering business has been restructured into

two divisions in place of the previous four: Topaz Fabrica-

tion & Construction and Topaz Maintenance Services have

combined as Oil & Gas Engineering; and Topaz Marine

Repair and Topaz Ship Building have combined as Marine

Engineering. There is an urgent increased focus on com-

petitive tendering and winning. Several new small to

medium Engineering projects have been won totaling US$

22 million, including the US$ 9 million ENOC shutdown for

later this year. The sales pipeline is good with very positive

prospects on some large opportunities that could signifi-

cantly improve outlook and backlog for 2012.

Outlook for Contract Services:

The slow build-up in the new oilfield accommodation

facilities at Marmul and Bahja in Oman is now over and the

facilities are finally reaching anticipated levels of utilisation.

In addition, some new contract gains, and investment in

extending other oilfield facilities, will bring further perform-

ance improvement in H2. Also in June of 2011, the

Contract Services division was awarded new contracts by

Oman’s Ministry of Health Hospitals. The contract award

signifies a notable achievement for CSG as the largest

award from the Ministry of Health during the past two

decades and extends the company’s leadership in the

Omani market. The company has invested heavily in an

accelerated Omanisation programme over and above its

ongoing national workforce development programme.

MENA, while developing a growing profitable presence in

West Africa. In June 2011, Topaz Marine was awarded

long-term vessel contracts totaling approximately Rial 61.5

million (US$ 160 million) with clients Saudi Aramco and

ABB Engineering, and current vessel utilization rates are

above 90%.

The Channel - issue 4 - August - July 2011

RFMS hires and trains 300 employees for new contracts

Renaissance Facilities Management Services

LLC (RFMS), Renaissance Services’ contract

services subsidiary in Abu Dhabi, has success-

fully mobilized and trained over 300 staff in

support of new contracts awarded by the

Abu Dhabi Health Authority earlier in the year.

Feature Story

The contract award represented a strategic break-

through for the company’s Contract Services Group

which entered the UAE market in 2010. RFMS won this

contract against local and international competition

contending for the government contract covering all

SEHA hospitals in the eastern region of Abu Dhabi:

Tawam Hospital, managed by John Hopkins Interna-

tional, Al Ain Hospital, managed by Vienna Medical

University, and Al Waqan Hospital.

RFMS have recruited approximately 300 new staff

required for the contract and have doubled training

efforts to ensure the client’s requirements are met and

exceeded at the service level through various Health,

Safety and Environment (HSE) training programmes.

“The client wanted to ensure that anybody at the

hospital whether employee, contractor or sub-contrac-

tor, should be able to do certain fundamental things for

them to be able to look after their patients,” explains

Susan Fisher, Training & Development Manager of

Contract Services Group (CSG). “So for example if

there is a hazardous spill, then we know what to do,

and we’re working as a team.”

Following a company induction session where

employees were introduced to the company and its

The Channel - issue 4 - August - July 2011

Feature Story

core values system, the trainees went on to complete a

grueling HSE training programme consisting of risk

and disaster management, fire and safety management,

infection control, 3-step for medical emergency, body

mechanic (manual handling), and hazardous material

management.

Fisher then guided trainees with hands-on practical

training sessions that covered areas of service and

food safety, including health and safety at the work-

place, infection control, cleaning, waiter and customer

service. Supporting Fisher were Athula Galagod, Food

Safety Officer at CSG, and Mohan Shetty, QA Officer at

CSG.

“Operationally it was a challenge since it was a new

project and staff was working quite long hours, some-

times training late night or very early morning hours

RFMS hires and trains 300 employees for new contracts (continued)

just to meet the needs of the client, but our trainees

were very happy because they enjoyed the training and

tools that we used,” added Athula Galagod.

The scope of work of the contracts covers the

provision of full catering services to the three hospi-

tals, including the operation of a total of 11 cafeterias at

the hospitals, as well as hospitality and recreation

management services to the Tawam Hospital.

The Channel - issue 4 - August - July 2011

Listening

messageCEO

from

the

Dear Colleagues,

Covey writes well about empathic listening, but I am also very fond of this little story from an old edition of

HBR, which takes the concept of really listening to a whole new level. Enjoy.

Stephen R. Thomas OBE

CEO

The Channel - issue 4 - August - July 2011

Back in the third century A.D., the King Ts’ao sent

his son, Prince T’ai, to the temple to study under the

great master Pan Ku. Because Prince T’ai was to

succeed his father as king, Pan Ku was to teach the

boy the basics of being a good ruler. When the prince

arrived at the temple, the master sent him alone to

the Ming-Li Forest. After one year, the prince was to

return to the temple to describe the sound of the

forest.

When Prince T’ai returned, Pan Ku asked the boy

to describe all that he could hear. “Master,” replied the

prince, “I could hear the cuckoos sing, the leaves

rustle, the hummingbirds hum, the crickets chirp, the

grass blow, the bees buzz, and the wind whisper and

holler.” When the prince had finished, the master told

him to go back to the forest to listen to what more he

could hear. The prince was puzzled by the master’s

request. Had he not discerned every sound already?

For days and nights on end, the young prince sat

alone in the forest listening. But he heard no sounds

other than those he had already heard. Then one

morning, as the prince sat silently beneath the trees,

he started to discern faint sounds unlike those he had

ever heard before. The more acutely he listened, the

clearer the sounds became. A feeling of enlighten-

ment enveloped the boy. “These must be the sounds

the master wished me to discern,” he reflected.

When Prince Ta’i returned to the temple, the

master asked him what more he had heard. “Master,”

responded the prince reverently, “when I listened

most closely, I could hear the unheard–the sound of

flowers opening, the sound of the sun warming the

earth, and the sound of the grass drinking the

morning dew.” The master nodded approvingly. “To

hear the unheard,” remarked Pan Ku, “is a necessary

discipline to be a good ruler. For only when a ruler has

learned to listen closely to the people’s hearts,

hearing their feelings uncommunicated, pains

unexpressed, and complaints not spoken of, can he

hope to inspire confidence in his people, understand

when something is wrong, and meet the true needs of

his citizens. The demise of states comes when

leaders listen only to superficial words and do not

penetrate deeply into the souls of the people to hear

their true opinions, feelings, and desires.”

Havard Business Review, July/August 1992

PDO Managing Director visits PAC Marmul

PDO directors and Contract Services Group managers at PAC Marmul

Each of us, as safety leaders, should focus on behaviours

and attitudes through leadership, communication,

competence and systems, the contractual framework and

consequence management. This was reinforced at a guided

tour of Renaissance’s Marmul PAC facilities to Petroleum

Development Oman (PDO) directors including Raoul

Restucci, Managing Director of PDO.

Marmul recently celebrated one year with no Lost Time

Incident (LTI) since the launch of the camp in 2010. The

Marmul site facilities includes 512 rooms designed to house

1,000 employees, as well as administration buildings,

state-of-the-art kitchens, bakery and dining facilities, laundry

services, function rooms, meeting rooms, auditorium,

swimming pool, gymnasium and all types of indoor and

outdoor sport courts, a fully equipped 24-hour clinic, plus

auditorium and library.

Progress 2011-2012 on stands

United Media Services has published the 17th edition of

its annual bilingual publication Progress 2011-2012 saluting

His Majesty Sultan Qaboos Bin Said on the occasion of the

41st anniversary of Oman’s Blessed Renaissance.

Progress takes an in-depth look at the various sectors that

have contributed to the Sultanate’s development and

modernisation. The annual country book stands out for its

analysis of various economic sectors covered in dedicated

chapters highlighting the strides taken by the Sultanate.

The opening article examines how Vision 2020 has

become the country’s blueprint for creating a more self-sus-

taining, oil independent economy on a par with the rest of the

world in all sectors of economy, commerce and trade. Other

articles focus on the latest developments, key financial

indicators and the future roadmap.

Progress is the first annual country book that is available

in a digital version on www.progressoman.com. The digital

version offers readers online access to a more comprehen-

sive range of articles than the print edition. It will serve as

a one stop reference point for people seeking

information on Oman’s remarkable journey over the last

41 years.

Number of Employees 6,291 7,167

Number of Man Hours 1,950,210 2,221,770

Number of LTI 0 0

Number of KMS Driven 1,052,368 852,528

2010 2011

CSG Corporate HSE Statistics July

5,949 7,184

1,781,100 2,155,200

0 1

601,912 849,845

2010 2011

June

The Channel - issue 4 - August - July 2011

Renaissance Whale and Dolphin Project

Ambitious steps are also being taken towards the

development of a regional Conservation Management

Plan (CMP) focusing on the Arabian Sea Humpback

Whale population which will involve local entities as well

as governments of the range states within the Arabian

Sea region of Oman, including Yemen, UAE, Iran, India,

Pakistan, and Sri Lanka.

“Ultimately, the management of large whale stocks is

part of a process of sustainable management of our seas

and coasts, not just for the benefit of whales, but also for

the benefit of people, particularly the large numbers of

people in the region who rely on the sea's resources for

their livelihood” said Baldwin, who is also the Marine

Programme Manager at the Environment Society of

Oman.

The Renaissance Whale and Dolphin Project is

deploying a variety of methods to learn more about the

distribution, abundance, habitat use, population charac-

teristics, and potential threats to these marine species

throughout the Sultanate of Oman. Not only will this

wealth of scientific information help to preserve the

unique whale species, but it will also materialize into

guidelines for eco-tourism and other economic verticals,

and be documented for Oman’s future marine studies

and museums.

Convention measures are a top priority on Oman’s

agenda, including monitoring the interaction and threats

to large whales from shipping traffic and bycatch.

With Renaissance’s financial support to a team of

international marine experts, cutting-edge scientific

research is being conducted on Oman’s whale and

dolphin populations that will assist decision makers in the

Ministry of Fisheries, Ministry of Environment and Climate

Affairs and other governmental bodies plan a healthy

balance between marine life and economic development,

and to design effective conservation strategies to ensure

the survival of species under threat of extinction.

Since joining in 1980, Oman is the only International

Whaling Commission (IWC) member country in the

Arabian peninsula and is one of the very few countries

that has an on-going research programme in the entire

northern Indian Ocean. Oman was represented at the

Commission Meeting by the IWC Commissioner in Oman.

As a result of the recent findings from the Renaissance

Whale and Dolphin Project on the unique and isolated

population of the Arabian Sea Humpback Whale, Marine

Expert Robert Baldwin was specifically requested by the

IWC Secretariat to attend this year’s Scientific Commit-

tee meeting where he presented the most recent

information on the Arabian Sea Humpback Whale, the

Bryde’s, Blue and Sperm Whale, as well as several

dolphin species.

The company’s Renaissance Day advert (below) featured the RWDP, pub-

lished in Progress 2011 in English and Arabic.

The Channel - issue 4 - August - July 2011