Caverton Slides by 10% to N8.44bn after JV Deal
One of Nigeria’s leading oil services companies, Caverton Offshore Support Group Plc.’s market value declined by 10% to N8.44 billion in the equities market due to selloffs. The company’s share price fell to N2.52 in the market as more than 1.805 million shares valued at N4.569 million exchange hands in the market.
Transactions on the company shares were for sell-side actors, causing the offshore support group valuation to decline. Caverton’s 3.350 billion shares outstanding were valued at N8.443 billion as the price declined by 10% on the day.
Recently, the company announced that The Nigerian National Petroleum Corporation (NNPC) Shipping, Stena Bulk, and its subsidiary Caverton Marine Limited signed a new joint venture that will transform Nigerian maritime transportation.
The agreement will create a new tanker operation serving Nigeria and West Africa’s regional and global crude oil, refined product and LNG shipping requirements, according to an official statement.
Caverton said the joint venture partners will create a new company whose objective is to provide top quality, reliable and efficient maritime transport.
The partners will explore options to create a modern and efficient fleet of tankers, comprising both new and existing tonnage depending on market factors and commercial opportunities in the region.
The companies will evaluate opportunities for both vessel acquisitions and long-term charter arrangements, with a focus on maintaining competitive operating costs while meeting the highest standards of safety and sustainability.
This fleet will primarily serve the logistics needs of NNPC, including crude, clean and LNG/LPG transportation. Additionally, the new company will cater to other oil producers and traders, offering the strategic advantage of a modern fleet, strong financial backing, and maritime pedigree and heritage.
In a comment, Bode Makanjuola, CEO, Caverton Offshore Support Group, said: “This joint venture—the result of many years of planning—marks a significant stride in enhancing Nigeria’s maritime capabilities.
“By combining local knowledge with international best practices, we are establishing a world-class operation that will benefit not only Nigeria but the entire Sub-Saharan Africa region.” #Caverton Slides by 10% to N8.44bn after JV Deal Nigerian Exchange Falls by N73bn as Investors Dump VFD, OANDO
