Renaissance Services SAOG (RNSS) Earnings Call Transcript & Summary

Okay. Good afternoon, everybody. Good morning, evening to you all wherever you are, and thank you for joining, and welcome to the Renaissance Services SOAG (sic) [ SAOG ] Investors Session. As a way of introduction, I am Andrew Dawson, and I'm the new CEO for Renaissance. So it's great to be here for the first time. And with me is our CFO, Juma, who you know from the previous calls. Perhaps before we get started, a short introduction from myself. I commenced with Renaissance on the 1st of June. I spent the first 30 days completing the handover with Stephen Thomas, who you should all be familiar with from previous calls, the outgoing CEO. The great thing for myself, for Renaissance is that Stephen is staying on with the company as an adviser to the Board and to myself. With all of his years of experience and wisdom, that's a great thing for us. I officially took over as the CEO on the 1st of July. And since then, I've had the opportunity to be meeting with many of our clients, ministries, of course, with many of our teams, both our existing and our up-and-coming leaders. And I will say straight up, what strikes me is the depth and the strength of the leadership talent in Renaissance is second to none and should give us a lot of confidence for the future. Perhaps a little bit of my background. I started in the hotel industry. I spent the first 12 years of my career in the hotel industry. Educated in Australia and completed my hotel corporate traineeship in the U.K., working both there. And I moved into the facility management industry 25 years ago in Australia with Sodexo. I spent a number of years there before moving to China with them at the beginning of 2010. And since then, I've spent the last 16 -- 15, 16 years in Asia, both in China and then based in Hong Kong, running the Asia Pacific region for CBRE Global Workplace Solutions, so their facility management, project management division. It's my recent job. Perhaps a few observations, my early observations before we jump into the Q&A. I see many, many strengths for Renaissance outside of the strong leadership strength, a very sticky long-term client base, great diversity of services, very strong reputation on the market, clearly, great balance sheet, very supportive Board of Directors and of course, yourselves, long-term stable investors. We can only thank you. I see the foundations of the business is very, very strong. And part of that strength is this mix of accommodation solutions and the contract services business, which gives our resilience across all the cycles in the economy. I see many upside opportunities, both externally and internally. Externally, with the market in Oman and across the GCC as we look at some of our future growth strategies, it is a relatively immature outsourcing market. This creates great opportunity because there are many things in the economy and on the market today that haven't even begun to be outsourced or even thought about being outsourced. You can look at waste management, you can look at utilities, you can look at the Hard FM and many other parts of the economy, which are all upside future growth for Renaissance and for our industry. Our job, I think, at Renaissance as one of the market leaders is to what I call make the market. And that is our job is to work with the ministries, work with potential clients in educating them and workshopping with them what is the art of the possible in terms of what could be outsourced in the future, what models that this could be done with and therefore, what value this creates for both our future clients and for our organization. Internally, likewise, I see many, many opportunities to continue to standardize our operating model to ensure it's scalable to support our growth and it's very growth focused as there is so much opportunity to ensure that we can grow in a sustainable way across multiple sectors of the economy at the same time. We also need to continue to invest in digitalizing our business to enhance both our client value and the value for Renaissance as through digital solutions, through ways of working, applying AI and automation is the way of the future for our industry, both within our organization and with our clients. I think the greatest positive that I see across all of this early on is that everything is in our own hands. I see no market impediments, only opportunities. Of course things take time when you're making a market and creating new outsourcing opportunities. But everything is in our own hands. I think before we throw it open to questions, you've seen the results for the first half of 2025, and you've had access to the Chairman's statement, which is quite comprehensive. Perhaps a few remarks. I think the continuing themes from what was presented in Q1 on the mix of business between the accommodation services solution and the contract services and then the occupancy at Duqm and the PACs, which I understand is key drivers for the accommodation services business and has been a point of discussion on many of the previous calls, is slowly building, and there's some positive light at the end of the tunnel, I'd put it, albeit, I would say, not at the pace which I understand was envisaged at the end of Q1. There's a very strong pipeline of new business opportunities in play with a clear growth strategy across several of the existing sectors, and as I said, with many future sectors to come. So a very strong, resilient, underlying fundamentals of this business. And as I started with great leaders across all the levels, giving us a lot of capability, a lot of capacity to grow and to perform well in the future. So I think, without further ado, hopefully, that gives you a little bit of an introduction, a flavor for myself. We'll hand it over to yourselves for the questions and answers. As I'm quite new in the chair, I'll ask Juma, he's going to facilitate that. He's got a little bit more of a background than myself on the first half of the year. But of course, I look forward to taking your questions as well and contributing. And again, thank you for joining us today. It's greatly appreciated. So we'll open it up for questions if we might, please.

So we'll open up for questions. [Operator Instructions] Can we take [ Siju ]?

I have a couple of questions actually from my side. One is on -- just if you can give a little bit of color on what's happening in Duqm. And if you can just give us a light on what is the occupancy rate on that, it will be much helpful. Can I do one question at a time? Or do you want to share the questions and then later the answers?

I think for everybody's benefit, we will take a question at a time, and [Foreign Language] we will cover all yours. So you want to take this, Andrew?

Certainly. In terms of what we see happening at Duqm, is that the question?

Yes.

I think what we see happening at Duqm across the second quarter was a slow building in the occupancy. I think it has been explained before, there's a strong base of what's called anchor tenants who are in residence and continuing with ongoing operations at Duqm. And then obviously, there's all these new projects. I think what I've learned and I've seen is that it's been a long time talking about when are these new projects are going to come to life, whether it be the green steel, the hydrogen and ammonia and of course, the expansion of the refinery and the petchem. What we are sensing and we've had -- we have been hosting multiple site visits, and we're in negotiations with numerous potential upcoming projects for use of the village at Duqm. And there does seem to be a sense of movement on these projects. We understand some of the delays has been while there is an alignment in terms of the regulatory approvals, the allocations of some of the resources for these projects to begin, because I do understand, for instance, on the green steel, there will be a transitional period between the utilization of gas while they move into the utilization of hydrogen as those plants are built. From the sense that we have and from the discussions that we're having with potential future clients at Duqm, there does seem to be upcoming announcements in the pipeline, which we would expect through to the end of this year. And on the back of that, and it's really down to us to ensure we can secure those contractors as occupancy into Duqm that we should see some strong increases in occupancy moving through into 2026 and beyond. So that's the sense.

So I mean, just to add to Andrew, I'm looking to the numbers, the number of the second half of this year is in line with what had happened in the last year, even though the occupancy is slightly higher than comparing to last year. However, the occupancy of around 1,000 beds extra came from the anchor tenants, as Andrew was mentioning. But as an overall, we see very positive outlook to the Duqm and our investment is ready to take any upsides on to that region. So the fundamental of Duqm is very strong. And it's still stable businesses, but we are hoping that the occupancy will pick up. And that, of course, it will lead directly to the bottom line of the organization. Can you go ahead with the second question, Siju?

My second question is on the -- I believe your MOH is closer for renewal. Just wanted to get a color on what is the update on that? If you could shed some light on it, it would be much helpful.

Can you repeat your question?

The MOH contract, the Ministry of Health contract, which is actually getting closer to renewal. I just wanted to get any update on that front. Can you put a color on that?

Yes. MOH tender is not out yet for tenderings, but we are ready to pick up that business as well to -- it might go for renewal, but we don't know whether it's going to be like extension -- to the extending -- to the current tender or it will be a new tender. But we don't have a clarity at this point of time about that. But we are still serving MOH, and we are actually very much engaged with that business.

And what is the duration, how much you have currently for the contract? I just wanted to understand on that front, how many months you have pending actually for existing contract?

This contract that we have now is supposed to be up to December. And it is 3 to 4 years. So it depends on how they are rolled out.

Maybe just to add a little bit from what I understand, and as Juma said, we've had numerous engagements just since I've been in the chair with the Ministry of Health at senior levels is the ministry always in their market testing goes through a very robust process and leaves an adequate period of time in terms of for the tendering, the evaluation and then the mobilization of the new contract. So what we are anticipating, our current contract is until December 31, 2025, is due to the delay in the market testing is that we do expect an extension of that contract. And while that market testing goes on, so that contract, we expect to extend the existing contract sometime into 2026. We don't have clarity and we can't give you clarity on that time at this period. So the market testing is still coming. We're still expecting that. We're prepared, but it's not going to be on the time line that was perhaps anticipated in the discussion at the end of Q1. Hopefully, that gives some clarity.

Just to clarify that when you said market testing by the government, could you just elaborate on that just to understand from my side? Apologies, I just want to understand what we are looking at.

What I would mean by that is that they are retendering the business. So they're coming to market to test the solution and who's available on the market for the new contract.

Okay, fine. And I also wanted to check on your -- a couple of other things is that on the acquisition plan. I think it's mentioned in the report that you are looking for acquisition in certain sectors and everything. I just want to understand what is the update on that? And if you can just give us a color on where are you looking at to horizontally improve your top line. So I just want to check on that.

Yes. As we have discussed in the earlier sessions, so we are actually very much engaged to look to opportunities. We have in the pipeline, we are looking to a couple of opportunities here in Oman, in UAE and Saudi Arabia. This is our main focus matters. And we have -- actually, we are looking to -- in advanced stages. And until now, we cannot disclose how that transaction will happen because we don't have a clarity. So once we enter to any material discussions, it will be announced in the market in the due course. So we are -- but I'm telling you, we are actually, as Andrew was mentioning, our balance sheet is very strong, and we can accommodate big growth in the region, and we are looking very seriously and very aggressive to the local market, especially in UAE and Saudi Arabia and even in Oman as well. So that's what we can say at this point of time.

If I could just add a little bit on growth. From a services business perspective, such as our own, we have a number of levers for growth. So M&A is one of those levers in finding the right organizations, which can add value, whether it's through geographical expansion, as Juma has spoken about, or we could make some infill capability, acquisitions, to strengthen some of our services capability or new services. The two other big levers that we have is, one, what we will call organic growth, which is winning new clients for new business within our Renaissance. So through bids and through cultivating that new business and back to making the market, as I said. And the other lever of growth, which I see big opportunity as again the market matures is growth with existing clients. And if we look at our existing client base today, some clients, we operate what we call an IFM, so an integrated facility management solution. We have food, we have soft services, and we have hard services, the engineering and maintenance. But there's other opportunities with those clients. Then there are other clients where we may operate only food services or only hard services or only soft services, where again, we have even more perimeter for growth with clients. And the strength of the business model in a business like Renaissance is, once we're on the site with our clients, all clients face problems in their business every day that they need solving. We are their trusted services partner when we're on the site, and we're doing a good job, and I get resounding positive feedback from all the clients I've met so far as we are the obvious solution for them to come to, to help solve those problems quickly on the sites. And that's extra work for us today and a key lever of growth. So we've really got those three levers that we're looking at and how we can focus and really drive our growth in the future.

Other questions? [ Jose Matthew ] is raising his hand. Can you open the mic?

And one of -- in the Chairman's report, what you have mentioned is your revenue growth was driven by successful mobilization of a large, soft FM contract. Could you please tell us which is this contract and what's the size of revenue contribution of this contract to the overall revenue?

Yes. Thank you, Jose, to this question. Actually, our growth, as mentioned in the Chairman report, is driven by a couple of soft services, which is the facility management side of it. And actually, the big contributor of that one, major contract of PDO, which we have done it in the last year. So that was the growth side. But also, we have in the pipeline, very strong pipeline for growth in the soft services and also in hard services. So this segment of contracting business is very robust and resilient. Yes, it might be -- when you look to the margin side of it, it's lower margin, but the opportunity for growth and diversity of that segment is very good as well. So yes, the growth has happened in the low-margin segments of us, which is the contracting business, where there is -- we are seeing a decline in -- temporary declines in the accommodation solutions. So that's basically the growth area of this quarter or you can say this half-year results.

So what's the nature of this contract? Is it different from the existing PAC contracts that you have?

Yes, yes. This is soft services, which is basically catering.

Okay. And what's the revenue contribution?

So Jose, I prefer not to mention the contribution of each contract for the competitive advantages. So it's -- we are looking to our business as one segment. So I will not be able to answer that question just in terms of a confidentiality part of our contracts.

Understood. Understood. Juma, another question is, yes, you discussed about Duqm. Could you please tell us what was the exit -- second quarter exit occupancy levels? And how are we seeing the occupancy levels right now? And are we still sticking to the 11,000 exit -- end of year exit for Duqm albeit at 11,000 level?

Yes. So as you know, Jose, Duqm as accommodation solution is driven by the market and the growth on the entire SEZAD market of Duqm, so that the free zone. So it's very difficult to predict how much it will land at. So we now, as we operate at 30% level of occupancy, which is around 5,400 and that is for the moment. We see a very good positive outlook to the market in Duqm. And we are -- the only question is about Duqm, the potential is very high and the opportunity is very good, and we are ready to accommodate any comers to the area. But the only challenge question, you cannot predict how many people will come to the solution. So that's the only thing. So I cannot give you a number where I can't forecast. But from overall outlook, we see actually what we are getting from the market is that the government has already reached to agreement on the gas allocation. So we are expecting the steel structure industries, factory like and other, it will boom up in the market. And that, of course, it will increase our opportunity on the growth side of the Duqm. It's coming, but the timing, unfortunately, Jose, I cannot predict the time and nobody can, I think, time the market.

Maybe what I could just add, Jose, is from just obviously listening to previous calls, I'm new in the role and looking at the history and then what I understand early on in the business, I would just anticipate that we're closer to the end than we are than the beginning of these new projects coming on from the decision. From all the discussions I see and I said, the active processes we're in with these new projects, there's certainly -- and the feedback I take from Stephen and the team from where we've been in the past to the sense of where we are in these discussions now, we should anticipate these projects opening up. We can't predict when, but as I go, we're certainly, I think, closer to the end than what we've been through over the last couple of years.

Okay. And could you please give us an outlook on the PAC business? How is it performing? Earlier, you had some kind of challenges in getting the occupancy levels on the enhanced capacity. But it was -- earlier, it was advised that it will pick up slowly. So what's the scenario there? How are we seeing the occupancy levels in PAC? What -- if you can give us some quantitative numbers on the PAC accommodation, occupancy levels, current occupancy levels? And how are you seeing it for the remaining part of the year, that would be much appreciated.

Yes. So again, Jose, on the accommodation solution in the PDO villages. We have 6 villages across the oil field services where some of the occupancy in some of the sites are very good, which is at comfortable level, where other are down. So all these are depending on the project which will be in the oil fields. What we can see from the degrowth we have seen in the first half of the year, there is a positive upside, and we see it started. We are very much engaged with the PDO, and we are seeing the upside is coming up and it's already started comparing to what we have seen in the quarter 1. So there is a slight move, especially at the end of the quarter. So this is why the benefit we hadn't get it in the full quarter. So our expectation that will grow across all the PACs what we have in the PDO. Do you want to elaborate further on this?

I could just add a little bit, I think, because I've had some recent meetings, a number of meetings with PDO and their senior leadership. I think when I look back and I've been looking at the trends, actually, if you took -- if you compare it on a year-on-year basis this time this year to this time in 2024, the occupancy is lower. And I understand last year was a unique year. And when I look at the long-term trends, actually, the occupancy we're at now is higher than the long term. Last year was a crossover of some major contracts in the oilfields. So for, I think, 2 quarters in the PAC, there was a crossover of both incoming and outgoing contractors, which boosted that level substantially for last year. But from a long-term trend, we're actually up when I look back, and there is a number of projects and initiatives and potential new companies, new contracting companies that can be moving into the PACs over the coming months. So I think the trend continues. I'd say, like I said at the beginning, albeit maybe a little bit slower than was anticipated in Q1, but definitely positive progress in terms of occupancy, and we're in a good place from that long-term trend. I guess what I could also add what I understand is 2 years ago the -- in alignment with PDO as our client, there was an increase in the capacity of the PACs by about 2,000 beds. That capacity is obviously not really being utilized so far. So that is weighing on the business a little bit from a historical perspective in terms of the investment has been made and the capacity is now there. And with some of the discussions we've been having with PDO, that's where we anticipate that, that additional capacity that was added will be taken up as we move forward through 2026.

And Jose, just to your question, the potential of growth in the PDO PAC is very good. So the assets is also ready. The investment is already done. So whatever upside comes, it will be adding to our business. So yes, we have taken a slight hit of around OMR 0.5 million on the depreciation year-on-year because of the extension. But however, the assets is ready for potential growth in the outside market.

Yes. I got your point. It's underutilized assets, but I was just trying to gauge how much of underutilization is currently there in those assets? Are the 2,000 beds additional capacity? The reason is, I'm seeing other companies operating in the same fields are reporting better numbers as compared to Renaissance. And at the same time, you are painting a picture that there is underutilization of assets. So just wanted to know whether this is a PDO issue or is it specific to Renaissance?

Actually, Jose, it's not on PDO or on our side. And this is -- this business occupancy is project-wise. So there is sometimes cyclical period of the contractors moving until the new contractor comes in and that's happening. But I will not comment on what you are mentioning regarding the competitors' balance sheet and others. So we are seeing this across the market of the oil field. We don't see that if the project comes, the PACs are either us or our partners or other players in the market. So yes, there is no substantial issue. And regarding the number of beds, I'd rather not to mention the number of beds and the upsides on there. But I'm telling you our -- the utilization is very decent, still the business is very profitable. And the upsides always will help in boosting this business and that segment as an overall.

Next one and the last one is on -- you mentioned about the acquisition plan and explained it very well. Just a follow-up on what's the size of these acquisitions? You said a few -- a couple of them are in advanced stages of discussions. So what's the size of these -- what's the potential size of these acquisition targets? And also wanted to know how are you planning to finance these acquisitions if these are much higher acquisitions?

Jose, actually regarding the size of the business, we are actually open to -- and you see our balance sheet. So our balance sheet is strong to accommodate bigger growth. So the size of the business, once it is materialized, we will be able to tell how much is the size of that. But our capacity to accommodate very good opportunity is very strong. Regarding how to finance that it will be decided once we decide on the opportunity. There's multiple things we can do by restructuring the existing businesses and/or by taking a borrowing, so it's easy. So it will not require any kind of new stocks or options. We still can accommodate structuring this loan with the existing balance sheet capacity. So the financing part for us is pretty easy. And how to structure it, it depends on how is the shareholder of the acquired entities, if it happens. So that depends on how we will be able to structure it in a way. But that's the easiest part. The most difficult part is to find the right opportunity at the right price. And as you know, Jose, this is very, very critical things to do. So structuring it, financing it is the easiest part in our side [Foreign Language].

And maybe I could just add, Jose, being involved in these for the last couple of months is, it's not simply about the size at the start because what we're looking for is businesses with -- that we know well. So these are businesses in -- they are similar lines of services businesses, but with strong opportunity for growth and where we can really integrate these businesses and materialize numerous synergies out of them. And I think where we are with a couple of these, and there's still a long way to go, and there's no guarantee that what we're currently having in the pipeline and we're working on is going to close. But there's great upside opportunity and very strong synergies, alignment and our ability to integrate these and manage them and really bring value to both the entities as we integrate.

Okay. Do you have any time line -- target time line for concluding these talks or no, it's just open?

Time lines is the sooner the better for all of us. But as I told you, the big question is the right opportunity at the right price. So yes, once we get solid information about it, we will share it in the market as we have the regulations, you know, how the disclosures will happen. But we are very much engaged. We are looking to various options in the region. So yes, [Foreign Language], things will go to our side, and we will be able to share it in a more clear manner. Any further questions? Bishen is raising his hand, can you open that. Bishen?

Just a couple of standard questions. If you could just give us some insights. You mentioned about two growth markets. You mentioned, a, about acquisition, which we've sort of spoken about over the last quarter. That's an interesting development. But we also spoke about the UAE and Saudi as target markets. If you could just elaborate on sort of what kind of potential you see in Saudi specifically and sort of any interesting pipeline that you're working on or what's the potential over there would be interesting to get your thoughts on that. That's the first question.

Yes. So again, I mean, we have discussed this earlier. And yes, we see a potential in Saudi markets, and we see -- and everybody knows the macroeconomics of Saudi market of the growth areas. And I mean, we can see that there is a lot of potential in integrated facility management. So there is a lot of encouragement in the Saudi markets to do the entire integrated facility management, which is our aim to have. So it's been strong. UAE market is already established. There's opportunity and it is -- the growth story also in UAE is very good. So what we are trying to do when we look into these opportunities, we are looking to where we can implement our know-how for those businesses and where we can lead that growth of that company or that entity. So that's -- we are seeing it's an easier way to go to that market rather than starting new businesses, which take too long time to enter and to materialize the impact in our balance sheet. So that's basically. And in terms of the internal markets, Andrew as he was mentioning, there is a lot of opportunity in Oman also to look at. Either it is from merger or acquisition or from expanding our existing services in all the soft services and hard services and also waste management and utility side of the services. So we are seeing that growth, and we are looking to many opportunities. And I leave the floor to Andrew if you want to elaborate further on what we have discussed earlier.

Sure. Thanks, Juma. Thanks, Bishen. And I could just add one thing, perhaps, is that while we're looking at what I'll call traditional M&A, so in acquiring services businesses where we feel there's strong cultural alignment and synergies, as I explained before, we are also looking at leveraging our strength in build-own-operate-transfer type models. So we're working on both those, and we have both of those types of models in the pipeline, particularly the second one, so more of the PPP, build-own-operate models in the Saudi market as a potential way of entering and on some strong project basis. So we're looking at both of those as part of our, let's call our M&A inorganic strategy.

And if I may just further question on that on the Saudi front. What's the competitive landscape when it comes to the IFM space? I mean, Renaissance is obviously one of the best in the business, clear leader in the Omani markets. When it comes to Saudi, you obviously have a very impressive credential, but I would imagine that the strategy would be to tie up with a credible partner there when it comes to the PPP space. If you could just give us some sort of insights into competition and how you see that?

Yes. So yes, Andrew, do you want to take this?

I would. Bishen, exactly to your point is in terms of entering any new market, then we're really looking for partners who know the market well, have a strong reputation, have strong connections, relationships, all of those things that you really need to enter and succeed and obviously derisk them as much as possible. So whether that, again, is in more traditional M&A type partners, it's not -- for me, the deal, that's got to be the right deal, as Juma said, but that's just the beginning. The value is really just starting. So having that culture alignment is key. And the same on the PPP. So in Saudi, that's really where we see that kind of opportunity on the market because there is more of that model, the build-own-operate. And given Renaissance's strong knowledge and strength in that because it's exactly the model we have at Renaissance Village in Duqm or across the PACs, then we can bring our strengths to that as long as we're aligned with the right partner who, to your point, knows the market well, is well established and has all the credentials. So that's our mindset as we look at these.

Exactly. And Bishen, specifically in Saudi Arabia. So we are also -- we have a very dynamic situation in here. So for example, if it is accommodation services, we can tie up in a JV kind of format of like for PBM, the partnerships. So we can engage with a private equity who are handling the asset side and we can operate that asset. And also, we can participate as accommodation solution in the investment of the entire JV. So we have flexibility on that, but we are very much engaged to get the right opportunity at the right time at the right price also.

And the second question would be on the -- sorry, I joined the call a bit later. There was an overlap of another call. If you could just comment on the waste management services, how that's developing. I understand there was an entry sort of strategy a few years ago, and it's a big market. Where do you stand there? What sort of potential do you see there?

I didn't get your question, Bishen.

On the waste management, is that the question?

Yes.

Maybe I can take that. And look -- and thank you for joining. We understand there's a clash with another major call. So we appreciate you could join us. Maybe I can just add some things I said at the beginning, but also particularly around waste because I have had some engagements as part of meeting with a lot of our clients and ministries with peer and with the top of that organization. Today, I think our market share on the waste management is something like 8% or 9%. And we're really just in the waste collection and the depot management, et cetera. There's -- we are actually working with in what the future strategy is. And personally, I see huge opportunity in that market. We have a very clear plan, and we're actually workshopping on them with that, what their vision is for transforming that industry in Oman over the coming years, and we see a great opportunity to be part of that. Obviously, we have a strong partner with us in Sager in that business. And particularly in that business, but all others -- and what I was saying at the beginning, I think it fits the waste as much as the utilities as hard FM as I said, and other areas of the business, given that generally from my perspective, Oman is quite an immature market in terms of facilities outsourcing, let's call it. That's -- every market go through a maturity curve. And as where I see the market today on that maturity curve is full of opportunity because there's many activities, many organizations, many services, which haven't even started to consider the outsourcing journey in Oman. And as I mentioned, our role at Renaissance as one of the market leaders is to work with the authorities, work with organizations to help to develop the market, to educate them, to present the models, the ways of outsourcing and the value that, that brings both to the client organizations and to Renaissance. So there is a big upside on the market here, which is going to take time. Markets take time to mature. But from Renaissance, all the strengths of the business, the positioning is incredibly well positioned on many of these sectors today to take a fair share of that market growth as it comes over the coming years.

Bishen, just to give you a flavor actually, our vehicle is very ready to grow in the waste management. And as per the current situation in the market, these services will be given to the governments rather than centralized. Now it became decentralized under all governments. And we will be seeing some tenders rolled out, and we are ready to participate on those. We have the right partner. We have the right vehicle to grow on that field. So we are hungry to see some kind of tenders around in other -- in the old sites of the country. So that will be happening soon.

Interesting. And just one last point on that. Any aspirational market share that you sort of have in mind? You currently mentioned, Andrew, at 8%. Any aspirational sort of market share you'd like to sort of grab over the next -- let's say, over the maturity phase?

We will participate in all the tenders will happen in the country. So as that market is revolving and it will now become under each government, we will be able to accommodate the growth on that sector. So it's a matter of seeing because the sector is still not clear after it's been moving from centralized perspective to decentralized under each government. So once that's ready, we will be able to know how -- what are the low-hanging fruits and how much we can catch as we go. But we are ready to get any pieces ready for food and drink.

And it's very hard to size the market today because it is moving from quite, let's say, basic level services of waste collection, landfill, obviously moving into recycling, moving into waste to energy and many other developments that are being looked at in Oman. So how that market develops will help us identify what areas of that market are interesting for us within our existing capabilities and potential new capabilities for us to capture.

Any further questions on -- can you check there? Raised hands? So we have 10 more minutes to close the session. So if anyone has a question, we will be waiting for a couple of minutes to accommodate all the questions. Anything in the web Q&A questions? Nothing there, okay. So we will wait a few minutes if there is any further questions before we close the session.

Okay. I think we'll call it there then. It seems there's no more questions. Thank you, firstly, to each of you for joining today. We know that there was a clash, so it's even more difficult to join. And we very much appreciate your ongoing interest and support of Renaissance. We appreciate the questions and the opportunity to explain a little bit more about our business and the opportunities. And I said the really strong foundation, excuse me, for the future. Thank you, obviously, to the market for facilitating this. And we wish you a good day and look forward to meeting you, hopefully, many of you in person in the future.

Thank you very much. Thank you. With this, we will close the session. Thank you for all the participants. Thank you very much.