Caverton Offshore Support Group plc, the leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, released its audited 2014 Financial Year results, showing a 33 percent increase in revenue to N24bn over last year, with improved operating performance.
Net income however was impacted as a result of the weak Naira due to the devaluation.
Commenting on the year end results, Bode Makanjuola, Caverton’s chief executive officer, said, “The year has been of a mixed fortune! Whilst steady implementation of our strategic plans translated to strong top-line growth – with group revenue soaring 33 percent year-on-year to N24bn, an exchange translation loss of N2bn resulting from the official devaluation of the Naira resulted in a drop in net income.”
He further stated that “In the current challenging business environment, we continue to focus on reducing cost and increasing efficiency for all sectors of our business in 2015. Our drive to diversify and grow our revenue base is on track with the planned development of our aviation training centre; and maintenance, repair and overhaul facility.
“In addition to our existing contracts, for FY 2014, we witnessed increased activity in the helicopter charter segment which resulted in increased revenue for the end year.
“We signed new agreements to provide aviation and marine logistics services to indigenous oil and gas companies as we continue to take full advantage of the opportunities offered by Nigerian Oil Companies (NOC) as more multinationals unbundle and divest assets to Nigerian Oil Companies.”
Growth in group revenue was driven by increased activity in helicopter charter segment – segment revenue up from N267.6m in FY 2013 to N4.6bn in FY 2014.
Gross margins improved to 44 percent in 2014 as the group pressed on with cost cutting initiatives which led to efficiency gains.
The Petroleum Technology Development Fund (PTDF) and Caverton signed a Memorandum of Understanding (MoU) – a cooperative agreement to train pilots sponsored and trained by the fund. Under this, Caverton will employ the pilots on successful completion of the training having gained type rating and flying hours.
The company also signed contract with CAE, a global leader in the provision of flight simulators, to operate the first commercial aviation training centre in the sub-Saharan African region, apart from organising AW139 Type Rating Course for 13 Caverton engineers and two NCAA Inspectors. The course was delivered at Caverton facilities in Nigeria by renowned training providers REH Aviation Ltd UK.
Caverton – RK also awarded a contract to supply two drilling vessels to Shebah Exploration and Production Company Limited (SEPCOL).
Caverton Marine Limited – a subsidiary of Caverton Offshore Support Group PLC- received an AA categorisation from NCDMB showing full compliance with Local Content Act as it pertains to Company and Asset ownership.
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 June 2, 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.
The company has an impressive oil and gas client base which includes Shell, Total, ExxonMobil, Addax Petroleum, NNPC and Subsea 7 among others.
Sade Williams
