Caverton Offshore Support Group reports N5.9bn loss

Caverton Offshore Support Group Plc has announced its unaudited results for the period ended December 31, 2021. The results show Loss Before Tax (LBT) of N5.9billion as against Profit Before Tax (PBT) of N1.26billion in 2020. It recorded a Loss After Tax (LAT) of N5.91billion as against profit after tax (PAT) of N1.18billion in 2020. Loss Per Share (LPS) of 177kobo against Earnings Per Share of 35kobo in 2020.

The group’s financial highlights show revenue of N35.06billion (N32.17billion in 2020) and a gross profit of N7.50billion (N13.6billion in 2020). Total operating profit, (excluding finance cost) came in negative of N1.28billion as against N5.29billion in 2020.

“This result came due to the serious negative impact that the Covid-19 pandemic continues to have on business operations in Nigeria and the rest of the world, which has caused a significant reduction in activities by International and Local Oil and Gas companies who are the major clients of Caverton, which, in turn, rubbed-off our Caverton operations and profitability”, the company said.

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Commenting on the results, Caverton’s Chief Executive Officer, Bode Makanjuola, said that the loss was caused by the significant reduction in revenue due to several mitigating factors because of the covid pandemic which resulted in a drop in oil production and net foreign exchange loss due to Naira devaluation against the dollar. As a result of this, our direct costs increased significantly in 2021.

Commenting further, the CEO stated that, “notwithstanding the loss reported in 2021, Caverton has robust reserves to accommodate this loss and a bulk of the reported loss is a one-time charge on our accounts which arose from high start-up costs of our most recent helicopter contract with Chevron.

To further boost revenues, the Group has been exploring further opportunities within and outside the oil and gas sector. In addition to growing our market share in the oil and gas logistics sector, our primary focus for the year will be on third party training and maintenance.

“Our Maintenance Repair and Overhaul (MRO) facility and our Caverton Aviation Training Centre (CATC), both in Lagos, officially commenced business operation in the 2nd half of 2021. Prospect for training and maintenance is extremely positive as we are in advanced contract negotiations with a number of government and private institutions across Sub-Saharan Africa.”

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.