Caverton group overhauls facilities to lift service delivery, profitability
Caverton Offshore Support Group Plc (COSG) has announced that its maintenance, repair and overhaul facilities, which are currently going through construction process, would help increase service offerings and enhance profitability.
The company explained that the construction exercise, which was part of its strategy to expand revenue base, would also boost profitability and make the company remain competitive in the industry.
Addressing stockbrokers during the closing gong ceremony on the floor of the Nigerian Stock Exchange in Lagos, the Managing Director of the company Bode Makanjuola assured that the firm, amid challenging business environment, would continue to focus on reducing operational costs to offer cost effective solutions to clients without compromising safety and improving the efficiency of operations.
“Safety is one of our core values and our commitment to safety is unwavering. We partner with our key clients to ensure safe service delivery and continuously aim for zero incidents and accidents. In the face of challenging business environment, we work to ensure value-add to our esteemed clients and our shareholder.
“With strong pipeline of opportunities in the oil and gas sector, coupled with favorable legislation, an experienced management team and well defined business plan, it set the basis for going public.
Makanjuola, who expressed optimism that the next financial year would be a positive one for the company’s shareholders, explained that the company was insulated on the current effect of the micro economic challenges to a certain degree, adding that the contracts being awarded to the company was medium to long term projects.
“Caverton has been lucky enough that a lot of our contracts run up until 2017 into 2018 and 2019, much medium to long term contracts. We were so much insulated to a certain degree on the current effect on the market.
“These contracts were done when oil prices were pretty high. So while we have seen a dip in terms of new opportunities coming on the stream, our current cash flow and revenue stream is still intact because of the nature of the contracts we operate.
“The new policy direction will position us to good step going forward in 2016 and what I say to shareholders is that we had a bit of dip but we are able to maintain our current revenue level and we hope to improve on that in 2016,” he added