Caverton Profit Sinks 74%, CEO Says Group Faces Headwinds
Caverton Offshore Support Group Plc, the leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, today announces its profit settled at about N203 million in the first six months of 2022, according to a regulatory filing.
This translates to a 74% year-on-year decline when compared with N780.016 million that the company declared in the comparable period in 2021. The company’s unaudited results for the period ended 30th June 2022 show revenue printed at N13.96 billion in the same period with N3.51 billion reported as gross profit.
The review of the company’s unaudited financial statement indicates that Caverton’s revenue generating ability was under pressure in the first half of the year, down 23% from N18.069 billion scored in a similar period last year.
The downturn was driven by reduced revenue from helicopter/airline contracts, down more than 31% from N17.473 billion to N12.023 billion. Elsewhere, the company kept a tab on its operating expenses which sloped downward by more than 57% year on year despite rising headline inflation.
Commenting on the results, Caverton’s Chief Executive Officer, Mr. Bode Makanjuola, said that the company faced tremendous financial and operational headwinds in the first half of the year which necessitated the need for the management and the board of Caverton to urgently review the company’s management structure and business portfolio as a Group.
“We recently announced the appointment of a new Managing Director for Caverton Helicopters, restructured Caverton Offshore Support Group’s executive management and diversified our aviation business from oil and gas aviation logistics to third party training and maintenance, via our recently commissioned Maintenance Repair and Overhaul (MRO) facility and our Caverton Aviation Training Centre (CATC), both in Lagos.
“These announcements have been well received by the wider aviation and oil and gas industry and we are confident this strategy would yield positive financial fortunes for the Group whilst addressing this infrastructure gap in the aviation sector of Nigeria and sub-Saharan Africa. READ: Zenith Bank Posts N180 Billion Profit Despite Headwinds
“Our marine subsidiary, Caverton Marine, has also been repositioned for growth with our foray into local manufacturing of GRP boats. We recently launched our prototype 40-seater GRP ferry at the recently concluded NOG 2022 conference in Abuja, Nigeria and reception has been very positive.
“The ferry prototype was locally built to the highest safety and quality standards under the guidance of government and safety agencies and has applications in both oil and gas and commercial mass transit ferry transportation”.
