Caverton Posts N14bn Revenue, Loses N3.83bn to Naira Devaluation
By Goddy Egene
Caverton Offshore Support Group Plc (COSG), the leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria has announced a  revenue of   N14.4 billion for the nine months ended September 30, 2016.    The revenue showed a decrease of 19 per cent compared with N17.87 billion posted in the corresponding period of 2015.  The company said the drop in revenue in the quarter was due to slower business activities in the oil and gas industry. The company’s continued efforts to cut costs and increase efficiency across the Group resulted in a 15 per cent reduction in operating expenses, from N9.96 billion to N8.47 billion. Similarly, administrative expenses declined by 23 per cent to N3.2 billion from N4.1 billion. Similarly, administrative expenses also declined by 23 per cent. However, an exchange loss of N3.837 billion resulted in a loss of after tax of N1.040 billion in 2019, as against a profit after tax of N1.391 billion in 2015.
According to Chief Executive Officer of   COSG Plc, Mr. Bode Makanjuola, the company’s primary focus has been to reduce and manage operating expenses and exposure to the volatility of the forex market whilst not compromising safety standards.
“We recently received our best Shell Audit Report since 2010 the contracted started which is an indication of the company’s commitment to maintain safety standards despite the economic challenges. As we enter the last quarter of 2016 and move into 2017 our focus will be on revenue generation and diversification of revenue streams, while still pushing further on cost reduction. As part of the diversification process, there are opportunities finally opening up for our marine business in the non-oil sector and the Maintenance, Repair and Overhaul, (MRO) facility, when completed will mean that the aircraft maintenance activities currently being done outside the country will be carried out in Nigeria, and this will bring about reduction in capital flight and training costs for Engineers and Pilots, amongst other benefits. The operational results shows that we are in a good position going into the last quarter of the year, but for the huge foreign exchange loss recorded that muted the effect of our overall efficient performance,’’ he said.
The CEO noted that the implementation of its  strategy to increase service offerings is ongoing as the construction of the Maintenance, Repair and Overhaul, (MRO), facility in Ikeja Lagos, is in top gear.
“We will also continue to explore other innovative solutions in support of deep and shallow water operations in both marine and aviation business. We successfully signed a new 5-year contract for helicopter management services which highlights our ongoing diversification efforts. We are also in the process of concluding terms of a new contract in our helicopter operations which we expect to have a significant impact on the scale of our business,’’ he said.