Oman’s Renaissance Services SAOG (Renaissance) is an Omani multinational Oil & Gas company that has two core business groups in Marine and Contract Services. Topaz Energy and Marine is a Dubai based oil services and firm dealing with offshore support vessels and providing marine solutions to the global energy industry.
Renaissance has announced its intention to sell Topaz Engineering LTD (TEL) for $18.5m to Chalmers Holdings, a Dubai-based marine and offshore outfit. The sale is at a loss of $5.5 million.
Renaissance had entered into a divestment plan in 2013, and as part of the plan was the sale of Topaz Engineering unit. This is with a view to divest its non-core businesses and focus on offshore support vessels and contract services.
Renaissance plans to focus on its international offshore vessels and develop its contract service business through Topaz Energy and Marine (separate company from Topaz Engineering).
As told by a spokesperson from the Renaissance Services: “This divestment marks a milestone in our ‘One Group: Two Companies’ strategy, which has seen the Renaissance Group focus on its two core areas of expertise: offshore support vessels and contract services. We have handed over TEL responsibly to a well-renowned operator who will be able to take the business forward with the requisite focus and enterprise and positively impact our people and customers.”
Renaissance’s share value fell by 66% in comparison to last year. Amid the biggest drop in global energy prices since 2008 with a 48% fall in crude oil prices in the past 12 months, coupled with surplus supply from North American provinces and a drop in demand from emerging Asian markets has put the oil producers under extreme financial pressure.
Despite the drop in earnings and tough environment for oil services companies, Topaz Energy and Marine, that has a fleet of more than 95 offshore support vessels, announced last month of their intention to buy two subsea vessels from Vard Brattvaag of Norway for about $115m, due for delivery by the end of 2017.
Source: Renaissance Services SAOG