Caverton Offshore Support Group Plc, Nigeria’s foremost indigenous offshore logistics services provider, increased its net profit by 14 per cent from N3.8billion to about N4.35billion in the financial year that ended on December 31, 2019.
Caverton Offshore, which shares are listed on the floor of the Nigerian Stock Exchange (NSE), in the review financial year, also declared a dividend of 20 kobo per share for shareholders out of its 128 kobo Earnings per Share (EPS) portfolio.
The Group’s Earnings per Share moved up by 14.3 per cent from 112kobo per share in 2018 to 128kobo per share in 2019.
In response to the current economic situation, the Board of Directors had taken a proactive decision to shore-up its revenue reserves.
During the period under review, the group’s revenue reserves increased by 37 per cent from N9.49 billion in 2018 to N12.96billion.
Shareholders’ fund also witnessed an increase of 20 per cent, from N17.94 billion in 2018 to N21.45 billion in the review period.
Financial analysts had thrown their weight behind the company’s decision to reduce its exposure to banks in terms of borrowing in the review financial year.
The company has also pledged to continue to re-invest profit to fund its operations in the years ahead.
Commenting on the company’s impressive financial results at the 11th Annual General Meeting of the group held virtually in Lagos yesterday, the Chairman of Caverton Offshore Support Group Plc, Dr. Aderemi Makanjuola, said “despite the onerous challenges we faced due to the changing economic environment, 2019 was indeed a good year for our company as we showed improved performance in most financial indices.”
Makanjuola said the performance reflected continued effective execution of the group’s bold strategy as it continues to innovate and break barriers to boost bottom line in building a customer-centric group ready to generate sustainable long term value to its shareholders.
“The focused leadership, concerted effort of your agile and devoted workforce, and continuing support from our stakeholders enabled us to achieve this feat,” he added.
Makanjuola hinted that the future is bright for Caverton Plc, as he disclosed that it recorded another breakthrough in the financial year ended December 2019.
Specifically, he said, a new seven- year contract for the provision of five aircrafts to support Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Petroleum Development Company Limited (SPDC) was won after a successful bid.
“This award demonstrates the quality of character and tenacity of 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.”
Another notable mileage achieved by Caverton in the 2019 financial year was the acquisition of Flight Simulator Training Device (FSTD), which was the first in Nigeria and the Africa.
The group said it would leverage on the increase of ‘AW139 Operators’ to create business value.
The FSTD according to the Caverton group, is a new aspect of its business that focuses on training.
According to the company’s chairman, the new business segment will fall under the purview of Caverton Helicopters Training Division.
Also speaking at the AGM, the Chief Executive Officer of Caverton Offshore Support Group Plc, Olabode Makanjuola, however hinted that financial performance in the ongoing financial year ending December 31, 2020 will be affected by the COVID-19 Pandemic, especially in the second half of the year.
He was, however confident that the group is well- positioned to continue to deliver good results in the years ahead.
“While seizing opportunities to build and grow our businesses, we aim to anchor our position as the trusted and preferred logistics solutions partner in the industry.”
Two representatives of shareholders’ group at the meetings – Mr. Boniface Okezie and Mrs. Bakare Bisi, commended Caverton Plc for its stellar performance in 2019 particularly for being able to pay dividend.
They urged the board of directors to ensure that the welfare of staff is well taken care of as they pleaded with the chairman to ensure that they are retained in the company despite challenges posed by the pandemic on the country’s business climate.