30/06/2015 03:58 AST
Oman's Muscat Securities Market (MSM) resumed trading of Renaissance Services shares on Monday, revoking an earlier trading suspension clamped on Thursday afternoon.
Renaissance Services last week announced that BP had awarded its Consolidated Camp Facilities Management contract to their subsidiary, Tawoos Industrial Services Company (TISCO).
Late on Thursday afternoon, the Muscat Securities Market suspended trading of Renaissance Shares, pending disclosure of the contract value. Late Sunday, Renaissance issued a statement that "the contract value for the initial phase of the contract covering the 29 months commencing August 2015; has an estimated contract value of $48 million."
Responding to the question of why the company announced the contract without full disclosure of the contract value, Renaissance CEO Stephen Thomas explained. "Renaissance has many contracts with major local and international clients, where the contract details are subject to strict confidentiality. This is normal, and it is the case in this instance. We announced that we had won the contract as soon as we were able to do so; and we put in place the formal contract process to announce contract value."
According to the CEO, the company has made many similar announcements before. "We always release the maximum information simultaneously to all stakeholders. In this case, as soon as we were able to announce the contract value, we did so." "Clients value Renaissance's commitment to contract compliance. Customer trust in our compliance and value of our services, is the true source and driver of shareholder value. So we may have similar challenges in the future."
"Renaissance operates on a global market platform winning sophisticated contracts with major clients. In all cases we shall honour our contractual obligations, and in all cases we shall announce to the market the maximum information allowed under the terms of our contracts. Renaissance always acts in the best interests of all its stakeholders," he added.
Thomas continued, "We recognise that this contract is an important award, but we are a large, international company and $48 million represents three per cent of our group's contract pipeline of $1.5 billion, in addition to our sustainable non-contract income stream of $100 million per annum."
"Renaissance is committed to the best in governance and transparency. Our Annual Report and Sustainability Report, our Quarterly Chairman's Statement, our quarterly analysts and broker's conference calls, our annual meeting with stakeholders after the AGM are all testament to how Renaissance governance compares with the best in this market," the CEO said.
"For now, let us just celebrate a great contract win for the company, and get back to the business of serving our customers," he added.
Times of Oman
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