Caverton Grows Profit by 338% in Five Years

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Bamidele Famoofo

Five years after its shares were listed on the floor of the Nigerian Stock Exchange (NSE), Caverton Offshore Support Group Plc, an indigenous offshore logistics services provider has grown in leaps and bounds.

For instance, its profit after tax (PAT) grew by 338 per cent in five years. It comes to an average of 68 per cent yearly.

Its PAT moved from N980 million as at December 31,2014 to N4.3billion as of financial year ended December 31, 2018.

Profit before tax in five years also grew by 111 per cent to N5.75 as at December 31,2018, from N2.73billion.

The Group’s asset base rose by 56 percent from N36.63 billion as of December 31, 2014, to N56.06 billion in 2018, while shareholders’ fund reflected the confidence of shareholders in the group with a growth of 54 per cent in five years, from N11.93billion in 2014 to N18.38billion in 2018.

Meanwhile, net profit in the financial year ended December 31, 2018 grew by 64 percent, from N2.62billion in the same period of 2017 to N4.30billion.

The net profit jump in 2018, according to Caverton Group, was driven by improved profit before tax while PBT growth was attributed largely to the group’s ability to improve its revenue base as well as maintain its cost levels. PBT stood at N5.75 billion in 2018, compared to N3.91billion in 2017.

The group said its shareholders’ funds which grew by 16 per cent, to close at N18.38billion in 2018, provides ample cushion for business growth. Shareholders had N15.80 billion in the kitty of the company the preceding year.

Shareholders of the group got 25 kobo per share as dividend in 2018 compared to 15 kobo per share in 2017. It represented an increase of 67 percent.

But shareholders at the Annual General Meeting which held in Lagos recently, asked for more from dividend pay-out in the years ahead.

They want the company to reduce the cost of borrowing and seek for cheap funds from the capital market to finance its operations and to save more money to be shared as dividends.

However, Aderemi Makanjuola, Chairman of Caverton Offshore Support Group Plc was optimistic that the entity would deliver a better performance in the year ending December 31, 2018 , as he said the prospects look bright.

He disclosed that Caverton Offshore Support secured juicy contracts with the Nigerian National Petroleum Corporation, NNPC and Nigeria Petroleum Development Company, NPDC, which will boost the group’s revenue.

” We were awarded a 3-year (2+1) Contract for the provision of aviation services to the NPDC operating out of facilities at the NAF Base in Port Harcourt, Rivers State. The award of this new contract demonstrates the quality of character and tenacity of the purpose of our Management Team and this laudable development also represents true commitment towards ensuring seamless running of the nation’s oil and gas industry and by extension the Nigerian economy “.