Don't Miss


Home   >   Business   >   Industries   >   Caverton posts N5.5bn gross profit

Caverton posts N5.5bn gross profit

By on November 14, 2014

Caverton Offshore Support Group PLC (COSG), a key provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, has reported an increase of 34 per cent in revenue for the nine months ended December 30, 2014.
The company posted a  revenue of N18.705 billion in 2014, up from N13.997 billion reported in the corresponding period of 2013.
Operating expenses went up by 17 per cent from N8.4 billion to N9.8 billion due to the rising cost of doing business in the Nigerian economy.
Gross profit rose by 59 per cent from N5.59 billion to N8.87 billion. Operating profit grew by 25 per cent to N4.284billion, from N3.414 billion.
However, an increase 30 per cent in financing cost moderated the profit after tax. COSG’s financing cost rose from N944 million to N1.225 billion.
Consequently, profit after tax recorded a growth of 24 per cent to close the period with N1.872 billion, compared with N1.506 billion in 2013.
Commenting on the performance, Chief Executive Officer of COSG, Mr. Bode Makanjuola said: “The steady implementation of our strategic plans is yielding good results.  Revenue grew 34 per cent to N18.7 billion driven by growing demand for helicopter charters that complemented our recurring revenues from fixed contracts. In addition we delivered improved operating performance as our margin was up from 10 per cent last year to 23 per cent as at September 2014.”
He said as part of  the company’s strategic plan to diversify  its income base,  the planned  partnership with CAE to build and operate    the first aviation training centre and aviation maintenance, repair and overhaul services in Nigeria remain on course. “Furthermore, we shall continue to explore our options for opportunities to increase our market penetration in other sub-Saharan African countries. We continue to progress our fleet expansion plans in the marine sector with the aim of supporting local and international oil and gas companies as they take their exploration and production activities further into the deep offshore. We are also committed to achieving the National Content Development targets as more indigenous pilots, engineers and seafarers get the required training to enhance their competence,” he said.
Makanjuola expressed confidence that “our cost control measures combined with the roll out of our strategic growth plan positions us to improve profitability thereby adding significant value to the Group and for our shareholders.”

 

[ThisDay]