By Goddy Egene
Caverton Offshore Support Group Plc (COSG), aÂ provider of marine, aviation and logistics services to local andÂ international oil and gas companies in Nigeria has announced increases in profit before tax (PBT) and profit after tax (PAT).
The audited results showed revenue of N20.5 billion in 2017, up from N19.3 billion in 2016.Â Â OperatingÂ profit (excluding other income) stood atÂ N4.2billion, compared with N2.2 billion in 2016.Â Â PBT rose from N1.1 billion to N3.9 billion in 2017, while PAT improved from N2.6 billion, from N612 million in 2016.
Gross margin wasÂ 35 per cent in 2017, down from 40 per cent in 2016, whileÂ earnings before interest, taxes, depreciation, and amortisation (EBITDA) marginÂ improved to 28 per cent, from 17 per cent in 2016. Similarly, net profit margin improved from three per cent to 13 per cent.
Commenting on the results,Â theÂ Â Chief Executive Officer of COSG, Mr. Bode Makanjuola saidÂ Â that the companyÂ remains the leader in offshore support logistics in Nigeria. He stated that part of our strategy to weather the current challengingÂ business environment of the past couple of years is to continue to focus on cost efficiency without compromising on our safetyÂ standards.
HeÂ added that the company will shortly commence its five- year Chevron contract from April and is confident of securing and renewing support contracts with newÂ and existing clients alike.
â€œThe implementation of our strategy to increase service offerings is also ongoing as the construction of the Maintenance, Repair and Overhaul facility in Ikeja Lagos is at an advanced stage. We continue to explore other innovative solutions in support of deep and shallow water operations in both marine and aviation business,â€ he said.
Makanjuola disclosed that theyÂ Â have beenÂ Â able to contain the administrative expensesÂ Â arising majorly from the impact of the government intervention in stabilising the foreign exchange rate market as well as consistent paying down ofÂ Â theirÂ Â loan which resulted inÂ Â lower finance charge.
He said that asÂ Nigeria gradually moves out of recession,Â the firmÂ remains optimistic for an improved business operating environment.
â€œThe impending commencement of our helicopter service contract for Chevron, as well as the completion of our MRO in Lagos are just some of the positive developments we are looking forward to. Meanwhile we are doubling efforts to refocus our marine business strategy and are confident of positive results going forward,â€ he said.