Renaissance holds annual general meeting

Muscat: Renaissance Group, listed as Renaissance Services SAOG at the Muscat Securities Markets, presented its annual audited accounts for the fiscal year 2016 in an annual general meeting held recently.
The meeting discussed operations and challenges faced by the company in times of low oil prices and economic downturn during the period from January 1, 2016 to December 31, 2016.
According to the financial highlights, revenue declined from $615.6 million in 2015 to $536.4 million in 2016. Net profit on operations also declined from $128.3 million to 93.8 million last year. Net fixed assets, however, increased to $1,564.8 million from $1,483.5 million in 2015.
“Our company is sustained by the strength of its relationships with all key stakeholders. These relationships are as strong as ever, because our stakeholders recognise and understand the value of our company. Our stakeholders understand the temporary nature of the industry crisis. They recognise the stability and strength with which we are meeting all our obligations; and they see the same strong future that lies ahead.” Samir J. Fancy said during the annual general meeting (AGM).
The AGM highlighted two core businesses of the group, Topaz and Renaissance in tough oil price situation.
Topaz operates a diverse fleet of 100 off-shore support vessels for the oil and gas sector, primarily in the Caspian and Middle East and North Africa (Mena) markets and has therefore been directly exposed to ongoing oil price crisis that has adversely affected the industry. The company has however won major new contracts that ensure a significant upturn in performance from 2018.
Renaissance services business offers strategic and integrated facilities management solutions for businesses in a wide range of sectors. It provides contract services, IFM and runs the Renaissance Village brand, which is a uniquely designed workforce accommodation solution and Renaissance Duqm Village.
The clients for this accommodation include government, universities and hospitals, ports, industries in diversified sectors, onshore and offshore hydrocarbon development and the military.
Renaissance Contract Services has maintained top line and improved bottom line. The company’s business strategy is to diversify the range of its services, sectors and geography. While this reduces exposure to the oil & gas industry, the sector remains the dominant player in the portfolio and this business is also not immune to the oil price crisis and the significant increase in cost of doing business in the dominant home market of Oman.
After the AGM, Renaissance's annual investor and analyst meeting was held. An open question-and-answer session allowed for a dialogue between management, investors and analysts.