• Wednesday, February 28, 2024
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BusinessDay

Caverton group intensifies effort to manage operating expenses

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There is no doubt that leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria , Caverton Offshore Support Group PLC (COSG), has proven its worth with its services to a range of multinational companies.

As it announced its unaudited 2015 half year financial results, the group says its revenue hits N11.9 billion.

The company said the results show a 5 percent decrease over same period last year and a 2 percent drop in indirect operating expenses compared to half year 2014.

Commenting on the results, Bode Makanjuola , Chief Executive Officer of COSG PLC, said: “While the oil and gas operating environment continues to be challenging, we remain optimistic business sentiments will shift for the better. We witnessed a 12 percent increase in contract revenue, but overall, revenue slowed due to a softer ad-hoc market. The increase in direct operating costs was mainly due to lease of assets to service our growing clientele.

“We will continue to maintain efficient use of our human and capital assets and align our services to the prevailing business environment. With the signing of our two year contract extension with Shell, in addition to increasing interest for support services from Nigerian Oil Companies (NOC’s), we hope to continue to grow revenue on the contract side.

Makanjuola further stated that ‘the company will continue to take advantage of available opportunities to increase our market penetration in Nigeria as well as geographical diversification across Sub-Saharan Africa.

“We are also making in-roads into non-oil and gas sectors of the economy. Our planned development of the first aviation training centre and aviation maintenance, repair and overhaul services in Nigeria remains on course”, he added.

It would be recalled that Caverton Helicopters signed a two year contract extension with Shell while it signed a Helicopter Charter Service Agreement with Nigerian National Petroleum Company (NNPC).

This service provision covers offshore platforms operated by Nigerian Petroleum Development Company (NPDC) as well as all flight requests from other NNPC subsidiaries on a call-off basis.

At the sixth Annual General Meeting of COSG plc held recently, dividend of 10 kobo for every N0.50 ordinary share were paid to shareholders.

COSG also recently migrated its accounting platform to the SAP Enterprise Resource Planning Tool.

The new system which was customized to meet accounting and reporting needs is a game changer for Caverton as it enables us to become more efficient and easily compliant with reporting standards global safety.

Caverton is one of Nigeria’s leading oil services companies providing solutions for a range of multinational companies across aviation and marine services.

Caverton Marine, one of the fastest growing indigenous shipping companies commenced operations in 1999 while Caverton Helicopters a helicopter charter, sales and maintenance company was established in 2002.

Both companies were consolidated to form Caverton Offshore Support Group on 2ndJune 2008.

The group’s focus and primary business is to provide logistics and environmental support services to oil and gas fields with broader plans to support energy operations along the West African shelf as well as other ancillary support services.

Caverton operates a young and growing fleet of vessels and aircrafts.  It has over 650 employees operating out of nine locations.

The company has an impressive oil and gas client base, which includes Shell, Total, ExxonMobil, Addax Petroleum and NNPC among others.

Sade Williams