Renaissance initiates work on Duqm project

15/05/2014 08:51 AST

Renaissance Services has started work for building the 16,000-bed Duqm contractors' accommodation. Earth works and piling works of the project, which is being implemented by the Contract Services Group (CSG) of Renaissance, have already been started and the main construction contracts will be awarded shortly, the company said in its first quarter results.

The CSG has won important new contracts with Ministry of Health (MoH) in Oman, due to commence operations in June, 2014.

Renaissance Services, which reported a net profit of OMR5.4million for the first quarter of this year against OMR4.8 million for the same period last year, has invested OMR58 million during the period, mainly for growth and renewal in the Topaz Offshore Support Vessel (OSV) fleet. This completes the deployment of funds for growth raised as non-amortised debt by Topaz in 2013 through the successful bond issue on international capital markets.

The company's revenue stood lower at OMR56.4 million in the first three months of 2014, against OMR58.5 million for the same period last year.

The company has completed the divestment of the media and communications businesses as part of its ongoing programme.

Topaz has achieved a positive first quarter, in spite of revenue pressure arising from a number of ships off-hire for scheduled dry docking. This is perfectly normal in the business cycle of an OSV company.

Caspian Voyager is mobilising as planned for BP in Azerbaijan; and two new vessels have joined the fleet: Topaz Seema and Topaz Xara. These new assets shall contribute to performance as the year progresses.

Meanwhile, the utilisation of the company's modern fleet remains high. In the Caspian, Topaz Legend and Topaz Glory have deployed to Turkmenistan for a 4 to 6 months assignment for ILK Construction.

In MENA, Maersk Oil Qatar has extended the contract for Topaz Salalah for another year; while Topaz Jumeirah and Topaz Jafiliya will both deploy on a six-month assignment for Qatar Petroleum commencing in May. In the Global fleet, Topaz Faye commenced a six-month contract with a global oil major in Nigeria from April 2014; and Topaz Commander has two consecutive contracts lined up, both in the North Sea and with reputed clients. These contracts illustrate the vibrancy of the business in terms of viable short term assignments; underpinned by the stability of a large number of long-term contracts in the Caspian.

Times of Oman