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Oman Business News

Oman's Topaz upbeat on 2019 growth prospects

Topaz, a global powerhouse in marine logistics and a unit of Omani multinational Renaissance Group, has achieved a market-leading 86 per cent utilisation of its core fleet last year and is upbeat on its 2019 market outlook.

Visibility of earnings generation and vessel utilization is positive for 2019, due to the safety, modernity and relevance of the Topaz fleet; and the stability of strategic partnerships and long-term contracts with blue-chip International Oil Companies (IOC) and National Oil Companies (NOC) clients, said senior officials of Renaissance Group during its 23rd Annual General Meeting (AGM) held at the Capital Market Authority Hall, Muscat recently.

Besides Topaz, the company, which is listed on Muscat Securities Market (MSM), has another core business, Renaissance.

The unprecedented turmoil in the industry over the past four years has proven that Topaz is both agile and experienced in navigating volatility, said a statement from Renaissance Group.

Its portfolio of vessels, despite the global OSV fundamental valuation reset, its geographic footprint, disruptive innovation and leadership position in home markets, together with the flexibility of the company’s operating model, have enabled and will enable Topaz to adapt well to future challenges.

Renaissance Services business offers strategic and integrated facilities management solutions for businesses in a wide range of sectors and geographies.

The company provides contract services, IFM and runs the Renaissance Village brand, which is a uniquely designed workforce accommodation solution and Renaissance Duqm Village, which is the sultanate’s largest state-of-the-art PAC.

Its clients include government, universities and hospitals, ports, industries in diversified sectors, onshore and offshore hydrocarbon development and the military, said the statement from Renaissance Group.

In 2018, the company achieved a 100 per cent record in major contract retention and extension, along with new contract gains. Renaissance won contracts to support the joint military exercise for Saif Saree’a at Duqm, MAM and Shaffa, it stated.

During 2018, the company maintained high occupancy levels at all Renaissance Villages in PDO’s oil and gas fields. Extended its contract tenure in major IFM contracts with BP Khazzan and Al Mouj, it added.

Also the company increased its market share in competitive tender for contract services to the Ministry of Health Hospitals, said Renaissance Group in its statement.

It also completed two years of initial occupancy build-up at Renaissance Village Duqm and the company now enters its first year of full-scale operations in 2019.

With secured occupancy in hand, the company is set to pass break-even this quarter and reach maximum current capacity (16,000 beds) by Q3.

The company is exploring expansion options to meet high excess demand in late 2019 and beyond, it added.

The Renaissance Group divested 100 per cent ownership of its Norwegian subsidiary, Norske Offshore Catering (NOC), realising a capital gain of RO650,000, having achieved equity IRR of 35 per cent.

The Omani group admitted that its progress in boosting its presence in the UAE market was slower than expected. However, the company is trying to create a larger customer base and establish profitability in 2019.

In the company’s services diversification programme, Renaissance has won a breakthrough contract with UAE-based be’ah for waste collection services in Al Wusta and Sezad, through its JV partnership with Sager of Italy. The contract mobilizes in late 2019.

The company has strengthened its Hard FM capabilities and established the ProTek brand to develop its traditional B2B service offerings into quality B2C homecare services.

On its future outlook, Chairman Samir Jimmy Fancy said Renaissance Services' performance will grow in 2019 just based upon rising occupancy at Renaissance Village Duqm.

"The company remains focused on capturing further growth opportunities through demand for our Accommodation Solutions; our ongoing diversification strategy; and our digital strategy to drive efficiency and innovation for our company and our customers," stated Fancy.

"The company continues to drive continuous improvement in safety, standards and service offerings in both companies. The company continue to innovate to ensure both businesses are increasingly agile, efficient, and customer-centric," he added.
  • Oman
  • oilandgas
  • market
  • growth
  • Duqm
  • Oman Topaz
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