Renaissance Services, the Omani oil services company, has taken over a unit it says was mired in "financial misconduct", and costs from restructuring it could reach as high as US$30 million (Dh110.1m).
In a filing this week with the Omani bourse, the company said three top officials at its subsidiary Topaz Energy and Marine had resigned and that it could fire more than 100 employees as part of the restructuring.
Stephen Thomas, the chief executive of Renaissance, has taken over the top role at Topaz while it investigates signs of fraud and other ethical lapses.
"At the moment we have no intention to press charges," Mr Thomas said yesterday. "There is only one manager who has been dismissed in connection with the business ethics violations, and that is a junior level finance manager from an overseas subsidiary. These business ethics issues are quite frankly history in our organisation."
The problems at Topaz added to an already rough year for Renaissance, with its net income from the first half falling by 77 per cent to 2.26 million rials (Dh21.4m), from 9.79m rials in the same period last year.
"Renaissance shall maintain this direct management role until the problems are resolved and the Topaz organisation is stabilised again under trustworthy specialised industry leadership," wrote Samir Fancy, the chairman of Renaissance, in the bourse filing.
"If not arrested, these matters could damage the company's reputation and sap morale."
Shares of Renaissance on the Muscat exchange lost a 10th of their value on the news, reaching 0.621 rials in their biggest drop in nearly six years, as the investment bank EFG-Hermes cut its recommendation for Renaissance to "neutral" from "buy".
As part of the restructuring, Renaissance ended a joint venture with the British energy services company Doosan Babcock and began the process of withdrawing from a boatyard in Kazakhstan. Ending that contract contributes to costs this year that could reach $30m, Mr Fancy acknowledged.
That represents a sharp turn in fortunes for Topaz, which as recently as March was poised for a $500m initial public offering (IPO) in London.
Fazel Fazelbhoy, its former chief executive, showcased expansions into Brazil and West Africa and Topaz publicised an award it won for corporate social responsibility.
"We had allowed the organisation to grow in preparation for the larger business that would have emerged after the proposed IPO," Mr Fancy wrote. "Unfortunately, the leadership model deployed was a command and control functional hierarchy."
The questions at Topaz first arose in April over the use of $2.9m of cash at an overseas subsidiary. Topaz has a joint venture in Saudi Arabia and subsidiaries in Oman, Qatar and the Caspian, which serves Azerbaijan, Kazakhstan and Turkmenistan.
"The investigation uncovered evidence of fraud, ethical misconduct and control weaknesses over a number of years," Mr Fancy wrote.
"The investigation is at an early stage but some further similar concerns have arisen. It is our intention to bring these matters to the attention of the appropriate authorities in the relevant jurisdictions where applicable."
The ongoing investigation puts another obstacle between Topaz and a London listing, which was delayed in March because of fears that regional unrest could sway investor sentiment.
If an IPO moves forward, Renaissance would separately list Topaz's engineering and offshore vessel divisions, the company said. The company is now in talks with banks to refinance an IPO.
ayee@thenational.ae
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Hoopla%3Cbr%3E%3Cstrong%3EDate%20started%3A%20%3C%2Fstrong%3EMarch%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Jacqueline%20Perrottet%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2010%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%3Cbr%3E%3Cstrong%3EInvestment%20required%3A%3C%2Fstrong%3E%20%24500%2C000%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Three trading apps to try
Sharad Nair recommends three investment apps for UAE residents:
- For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
- If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
- Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
All%20We%20Imagine%20as%20Light
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EPayal%20Kapadia%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Kani%20Kusruti%2C%20Divya%20Prabha%2C%20Chhaya%20Kadam%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Top 5 concerns globally:
1. Unemployment
2. Spread of infectious diseases
3. Fiscal crises
4. Cyber attacks
5. Profound social instability
Top 5 concerns in the Mena region
1. Energy price shock
2. Fiscal crises
3. Spread of infectious diseases
4. Unmanageable inflation
5. Cyber attacks
Source: World Economic Foundation
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
UAE currency: the story behind the money in your pockets
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Killing of Qassem Suleimani
Where to Find Me by Alba Arikha
Alma Books
KINGDOM%20OF%20THE%20PLANET%20OF%20THE%20APES
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Wes%20Ball%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Owen%20Teague%2C%20Freya%20Allen%2C%20Kevin%20Durand%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3.5%2F5%3C%2Fp%3E%0A
Super%20Mario%20Bros%20Wonder
%3Cp%3E%3Cstrong%3EDeveloper%3A%20%3C%2Fstrong%3ENintendo%20EPD%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3ENintendo%3Cbr%3E%3Cstrong%3EConsole%3A%20%3C%2Fstrong%3ENintendo%20Switch%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
Stan%20Lee
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20David%20Gelb%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Three tips from La Perle's performers
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
Medicus AI
Started: 2016
Founder(s): Dr Baher Al Hakim, Dr Nadine Nehme and Makram Saleh
Based: Vienna, Austria; started in Dubai
Sector: Health Tech
Staff: 119
Funding: €7.7 million (Dh31m)