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Renaissance Services 9 month net profit rises 53%

Muscat - 

Renaissance Services said net profit for the nine-month period ended September 30, 2012, increased 52.8 per cent to RO8.1mn from RO5.3mn in the same period last year.

According to company's financial results posted on its website on Sunday, revenue rose 9.7 per cent to RO226.1mn in the nine-month period from RO206mn in the year-ago period.

However, the company's engineering group posted a rise in operating loss to RO6.6mn this year, compared to a loss of RO5.1mn last year.

Performance growth indicators are positive. The outcomes would be significantly better without the losses in the engineering business. Loss-making contracts affected the engineering business. These contracts impacted overall performance in 2012, said Samir J Fancy, chairman of Renaissance, in his statement.

With the turnaround in business delivery we are confident the negative impact of engineering shall not recur in 2013. At the same time, we are actively engaging in merger and acquisition and divestment initiatives that have the potential to be very positive for these businesses. Reversing and stopping the engineering [group] losses shall have an immediate positive impact on profit performance for the group in 2013.

The main priority for the fourth quarter is closing out the engineering issues to ensure the impact is confined to 2012, with minimum residual overflow of issues into early 2013, Fancy added.

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