Shareholders of Caverton Offshore Support Group (COSG) Thursday expressed optimism that the company’s commercial Maintenance Repair & Overhaul (MRO) will greatly boost the diversification of its revenue base and improve its financial position.
The MRO will be used by airlines to maintain their aircraft.
Speaking at the 8th annual general meeting (AGM) of the company in Lagos, the shareholders said apart from conserving foreign exchange internally, revenue from other airlines that would use the facility will fetch COSG significant revenue.
The Chairman of COSG, Mr. Aderemi Makanjuola, assured the shareholders that the MRO would be completed and fully operational in 2018.
According to him, when the facility becomes operational, it will diversify the company’s revenue base across multiple platforms for the betterment of all stakeholders.
He said the current downturn in the oil and gas added pressure to the group’s financial performance and its operational cash flows, which led to reduction of 17 per cent in its revenue to N19.3 billion, from N23.2 billion.
He added that profit fell 11 per cent to stand at N7.7 billion as against N8.6 billion but total assets rose by 4.7 per cent from N39.5 billion in 2015 to N41.3 billion in 2016.
Makanjuola disclosed that in dealing with the current environment, the company’s units have been right sizing, monitoring the flow and reviewing their operations.
“We are leveraging on our companies to stream line processes, reduce costs and share resources. These efforts will enable us to resilient as we continue to navigate through rough waters,” the chairman said.
He added that the company continues to harness and collaborate the distinctive strengths of its businesses to capture opportunities arising from the local, regional, and global demand for oil sustainable.
“With increasing financial discipline and sharp focus on optimizing returns, we will seize opportunities as well as innovate solutions and services to build a long-term and competitive position and capture sustainable returns for our stakeholders,” he said.
Also speaking, the Chief Executive Officer of COSG, Mr. Bode Makanjuola, said while seizing opportunities to build and grow the business, the company aims to anchor its position as the trusted and preferred logistics solution partner in the industry.
“We have new contracts to commence in the current year and will continue to keep up our core competencies and building up new strengths to keep up our solid track record of satisfying our customers within budget and to the highest safety standards,” the CEO said.
He stated that the downturn is a good learning curve for both management and staff of COSG and they have put them in positions to develop their potential as part of the company’s progression planning.
According to him, the company will continue to pursue prospective contracts and leverage on existing contracts for increased business.