Caverton Offshore Support Group Plc has announced its audited results for the year ended December 31, 2020.
The company, which provides marine, aviation and logistics services to local and international oil and gas companies in Nigeria recorded unimpressive full year scorecard with 82.59percent decline in pre-tax profit which printed lower at N1.26billion from 2019 high of N7.24billion.
Like every other business in Nigeria, Caverton said it had to battle with the lockdowns, travel/movement restrictions due to the Covid-19 pandemic which resulted to exceptionally low business activities during the year.
Caverton’s operating profit (excluding other income) of N5.3billion in 2020 was down by 50percent, from N10.6billion in 2019. Its revenue of N32.2billion in 2020 represents a dip by 7.73percent from N34.9billion in 2019.
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The company said the result came in the face of the serious negative impact that the Covid-19 pandemic had on business operations in Nigeria and the rest of the world.
Earnings per share (EPS) of 35 kobo in 2020 represented a decline of 72.86percent from 129kobo in 2019. In the first-quarter (Q1) to March 31, the share price of Caverton Offshore Support Group Plc decreased by 4.9percent to N1.95.
Bode Makanjuola, Chief Executive Officer, Caverton Offshore Support Group Plc said that the results further highlight the continued commitment of streamlining “our operations in the face of tough economic conditions and reduction of activities by International and Local Oil and Gas companies which continue to impact the service sector of the industry.”
He further stated that “apart from our continued focus on cost efficiency, evident from the decline in operating costs by 8percent in 2020, (compared to 2019), we are equally focused on further expanding our business model and service offering. Our Maintenance Repair and Overhaul (MRO) facility and our Simulator Training facility, both in Lagos, are almost ready to officially commence business operation in the second half (H2) of 2021 and when completed will herald a new age in the Nigerian aviation sector and better fortune for the company and industry at large.
“While the marine service sector has been impacted negatively by the reduction in patronage and services, we are actively restrategizing and positioning the company to pursue opportunities within and out of the oil and gas sector”, Makanjuola said.
