Bloomberg News

Renaissance Soars as 2011 Revenue Beats Estimates: Muscat Mover

February 15, 2012

Feb. 15 (Bloomberg) -- Renaissance Services SAOG led gains in Oman after the provider of services to the oil and gas industry reported a higher-than-expected increase in 2011 revenue.

The shares surged 6.4 percent, the steepest rise in more than five months, to 0.552 Omani rial, at the 1 p.m. close in Muscat. The benchmark MSM30 Index rose 0.5 percent to 5,636.86, the highest level in a month.

Revenue increased 14 percent to 290 million rials ($753 million), the Muttrah, Oman-based company said in a statement to the Muscat bourse today. The median estimate of five analysts was for revenue of 277 million rials, according to data compiled by Bloomberg.

“The shares reacted positively to the higher-than- expected revenue in 2011 as compared to the market consensus,” said Kanaga Sundar, head of research at Gulf Baader Capital Markets Co. in Muscat. “Overall, we saw improved performance during the last quarter.”

Net income declined to 2.3 million rials from 32.3 million rials. “In 2011, we addressed a series of one-off operational challenges and we are now well-placed to move forward and progress the company’s dynamic growth strategy,” Chief Executive Officer Stephen Thomas said in the statement.

Seven analysts recommend investors buy shares of Renaissance, while 2 have a hold rating on the stock.

“We expect the company to report a profit after tax and minority interest of 18.9 million rials in 2012,” Gulf Baader’s Sundar said.

--Editors: Inal Ersan, Claudia Maedler

To contact the reporter on this story: Mourad Haroutunian in Riyadh at mharoutunian@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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