Caverton Posts N4.4bn Profit, Pays Dividend to Shareholders

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.