Q3: Caverton Offshore Support Group Posts N1.2bn Profit

Caverton Offshore Support Group (COSG) Plc a leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria has increased its profit for the nine months ended September 30, 2017.

According to the results released yesterday, the company posted some improvement compared to the corresponding period of 2016. COSG reported a revenue of N14.834 billion in 2017, up from N14.448 billion in 2016. Administrative expenses was reduced significantly from N7 billion to N3 billion in 2017, while finance costs fell to N1.056 billion from N1.143 billion. The company ended the nine months with a profit after tax of N1.193 billion in 2017, as against a loss of N1.041 billion in 2016.

Speaking on the results and future prospects, the Chief Executive Officer of COSG Mr. Bode Makanjuola said the company has been able to contain the administrative expenses during the period by about 61 per cent arising majorly from the impact of the government intervention in stabilising the foreign exchange rate market as well as consistent paying down of their loan which now resulted in their finance charge dropping by eight per cent. According to him, as Nigeria gradually moves out of recession, the company remains optimistic for an improved business operating environment.

“The impending commencement of our helicopter service contract for Chevron as well as the completion of our Maintenance, Repair and Overhaul facility (MRO in Lagos are just some of the positive developments we are looking forward to. Meanwhile we are doubling efforts to refocus our marine business strategy and are confident of positive results as we move into Q4. With the revenue increasing by three and profit after tax of 169 per cent over 2016 Q3 result, we remain determined to ensure optimal use of the business resources,” he said. Market operators had raised bright prospects for COSG when the company said its subsidiary, Caverton Helicopters, had been awarded a 5-year logistics support contract by Chevron Nigeria Limited (CNL), operator of the Nigerian National Petroleum Corporation (NNPC/CNL Joint Venture, for provision of aviation services with a two- year renewable option.

Caverton will service this contract with 11 Bell manufactured helicopters in line with CNL’s requirement and as part of the contract, Caverton will provide guaranteed medevac response to CNL 24 hours a day, seven days a week, covering their entire area of operations.