Caverton posts N2.62 billion after tax profit in 2017

• Shareholders get 15k per share dividend

Caverton Offshore Support Group Plc (COSG), has declared a Profit After Tax (PAT) of N2.62billion for the 2017 financial year.The robust bottom-line for 2017 is a 328 per cent rise from the N612.28million recorded in 2016. Profit Before Tax (PBT) also increased by N2.81billion or 256 per cent from N1.10billion in 2016 to N3.91billion in 2017.

The indigenous offshore logistic services provider has consequently declared a dividend of 15kobo per ordinary share of 50kobo each for its shareholders.At the ninth Annual General Meeting, recently in Lagos, the management of Caverton said: “shrewd cost management” helped to achieve profit, as revenue only grew marginally by 6.4 per cent to N20.54 billion in 2017, compared to N19.31billion recorded in 2016.

Over the years, the group has positively impacted the socio economic development of the country through various stakeholders; client, employees and communities alike. Its global workforce has equally grown remarkably with just below 700 employees in West Africa. With its rapid expanding fleet of aircraft and vessels coupled with its acquisition of key offshore assets and strategic partners, the group is able to provide a diverse range of services to its clients ensuring objectives are completely fulfilled, offshore to land.

COSG also takes pride in putting safety and quality at the core of its business and has been rewarded for this by its growing customer base. In September 2014, Shell Petroleum Development Company (SPDC) awarded the company the Shell ‘Safety Conscious Award’ recognising its safety conscious effort.Chairman of Caverton Group, Aderemi Makanjuola, said the impressive record of the company’s increase in revenue was due to stability of exchange rate, Nigeria’s economic growth due to massive government intervention in the agriculture sector, and a ramp up oil production.

Makanjuola also gave a pass-mark to the company’s financial performance in spite of the enormous challenges in the economic environment in 2017.He ascribed this to continued effective execution of his team strategy, as they innovate and break barriers to boost bottom-line in building a client-centric group, and generate sustainable long-term value for shareholders.

Makanjuola thanked the customers, staffers, and shareholders for their invaluable contributions and commitment to the company.Chief Executive officer of Caverton, Bode Makanjuola, assured shareholders that the company would continue to wax stronger.“In 2017, throughout a period of profound political and economic change around the world, our company remained steadfast in dedication to our clients in the host communities we serve, while earning a fair return for our stakeholders.

“Also, our financial results for year ended in 2017, displays positive performance confirming our company’s ethos to deliver a cost-effective and efficient service to our customers. Our desire is to continue to be a strong and financially sustainable group that puts our stakeholders at the heart of everything we do,” Makanjuola said.

Though Shareholders of Caverton Offshore Support Group Plc expressed the opinion that their company could do better in the years ahead, they were unanimous in applauding the Board of Directors for paying a dividend of 15kobo per share in the review financial year.

A shareholder affiliated to the Independent Shareholders Association of Nigeria (ISAN), Moses Ogundeji, applauded the company for paying 15kobo per share as dividend, but urged the Board of Directors to make the largesse better subsequently.Another shareholder, Patrick Ajugo, urged the company to come up with a track-able dividend policy.

Ajugo said a dividend of 15kobo per share out of Earnings per Share (EPS) was not good enough. He, however, commended the Company for the excellent performance of its Marine Business, which he said must be given a greater attention. Another shareholder, Nona Awoh, expressed reservation on the ability of the company to sustain the dividend declared, as he said that the business is capital intensive and that it needs all the capital available to grow at the moment.