(MENAFN- Muscat Daily) Renaissance Services has recorded an over 100 per cent jump in net profit for the six-month period ended June 30, 2012.
The company's net profit doubled to RO6.9mn in the first half of this year as against RO3.4mn in the corresponding period of last year, according to a filing with the Muscat Securities Market (MSM) on Monday.
Renaissance's total revenue rose 13.3 per cent in the first half to RO150.5mn as against RO132.8mn last year on improved performance in its engineering and contract services businesses. Renaissance shares jumped 5.54 per cent on Monday to close at 476bz following the announcement.
Company chairman Samir J Fancy said, in a statement, that the legacy of challenges from 2010/11 have either been solved or are under control and finite.
He said, ''We are encouraged by progress in the first half of 2012. We have completed initiatives to strengthen the balance sheet and lay a capital foundation for sustained growth.
There is positive momentum in all our businesses. We are achieving business growth and continuous improvement in operational performance. Our chosen markets are vibrant and growing.''
While Renaissance's contract services group reported a 139 per cent jump in first-half operating profit to RO9.1mn from RO3.8mn last year, the operating loss at the engineering group decreased to RO2.8mn from RO4mn last year.However, operating profit at the marine group declined to RO16.3mn from RO19mn last year.Â
In the first quarter of this year, Renaissance completed the refinancing of US$203mn for its Topaz Marine subsidiary. In the second quarter the company completed further refinancing of US$122mn for Topaz.
The firm raised RO43.16mn through a mandatory convertible bond issue in the second quarter, under a RO100mn capital raising plan which shareholders approved this year. A portion of the bonds is held in treasury by the company for future release in line with investment requirements.
''The effect of these initiatives is a strengthened balance sheet. We have the required liquidity to meet all our obligations; and, with the new equity, we have sustained and enhanced our capacity for investment in profitable growth,'' Fancy said.
Renaissance Services invested RO29mn in new assets in the first half of 2012.
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