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Revenue boost for Caverton as Total extends contract

By on May 29, 2014

The revenue of Caverton Offshore Support Group will witness a boost as  the company has received a two-year contract extension from Total Exploration and Production Nigeria Limited. Besides, Caverton is expecting a new AW139 helicopter which will be devoted to its long-term contract with Shell Petroleum Development Company.

Caverton, a week ago listed its 3.35 billion shares on the Nigerian Stock Exchange (NSE), thereby making history as the first Nigerian oil services company to go public.

The company grew its revenue by 16 per cent in 2013 to N18.7 billon, while profit rose 32 per cent to N5.9 billion on the back of contracts from international oil companies (IOCs).

The growth in revenue and profit is expected to increase further as Total has extended its  contract with Caverton. The contract, won in 2011, was initially for three years  for the operation of four helicopters into Total’s offshore fields. That contract would have come to an end this year but Total has exercised the option to extend the contract by two years till 2016.

Reacting to the development, the Chief Executive Officer of Caverton, Mr. Olabode Makanjuola, said: “We are pleased to continue rendering offshore and onshore oil field logistics to Total. This contract extension demonstrates Caverton’s service reliability and our commitment to provide safe and efficient services to our clientele.  We are confident that this will positively impact our revenue over the next few years.”

Also, the company is expecting a new AW139 helicopter  that will be  dedicated to the Shell Petroleum Development Company contract, which Caverton won in 2010. The expected aircraft will ramp up the number of AW139 in Caverton’s fleet to seven and is part of Caverton’s earlier stated plans to embark on fleet expansion.

The contract is valued at $648 million and is on record as the biggest ever awarded to an indigenous company by the oil giant.

Meanwhile, trading at the stock market closed on a positive note as the NSE All-Share Index garnered 0.77 per cent to close at 40,061.24.

 

 

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