Caverton Records 8% Revenue Drop in Q3 2020

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Chinedu Eze
Caverton Offshore Support Group Plc (COSG), the provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, has announced its unaudited first half year results for 2020.
The results show a profit before tax of N1.5 billion and an after-tax profit of N1.2billion.

Its revenue went down by eight percent, to N23.6 billion, as against the N25.8 billion recorded in September 2019.
In the same vein, the company’s direct operating expenses also dropped by 10 per cent supporting the earnings per share, which also dropped by 55 per cent, when compared to 2019 third quarter results

Commenting on recent events, COSG’s chief executive officer, Bode Makanjuola said, “2020 is definitely a year we would all like to put behind us. While the Covid-19 pandemic and oil price crash continues to have adverse effects on the Nigerian economy, recent protest have further exposed deep socio economic problems in the country.

“Despite these setbacks we are cautiously optimistic about the future for Caverton as well as Nigeria as a nation. As a people we remain resilient in weathering these uncertain times and look forward to finishing the year on a more positive note.

“As we move into the fourth Quarter of the year we look forward to the completion of our Maintenance Repair and Overhaul Hangar (MRO) as well as the Caverton Aviation Training Centre (CATC), which would be the first fully equipped simulator training centre in sub Saharan Africa. When completed the MRO and CATC would help in reducing capital flight and providing employment for Nigerian pilots and engineers.”

Its EBITDA for the period was N8.1 billion, lower than the N9.5 billion recorded as of September 2019, while earning per share was 35 kobo, as against the 77 kobo recorded as of September 2019.
The Group’s focus and primary business is to provide logistics and environmental support services to oil and gas fields with broader plans to support energy operations along the West African shelf as well as other ancillary support services.

Caverton has a young and growing fleet of vessels and aircraft operating out of nine locations. The company has an impressive oil and gas client base which include Shell, Total, ExxonMobil, NNPC, Aiteo, Aje-Folawiyo, and Chevron, among others.