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Caverton recovers further as investors renew demand

By on June 15, 2014

The share price of Caverton Offshore Support Group Plc recovered further yesterday at the stock market as more investors renewed demand for the shares on news of the company’s move to diversify its income base.

Caverton, a leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, made history  last month as the first offshore support company in the newly created Support and Logistics sub-sector.

But its share suffered significant decline from N9.50 to N4.19 due to what capital market operators linked to lack of enough information on the operations of the company.

However, the share witnessed a rebound on Wednesday, rising from N4.19 to close at N4.34. The stock appreciated further yesterday, adding 15 kobo to close higher at N4.53 per share.

The Managing Director of APT Securities and Funds Limited, Garba Kasimu Kurfi had said most operators and investors are yet to really understand the operations of Caverton and its earnings potential hence the weak demand which was affecting the share price.

“I think many people do not know much about the company. However, I expect the shares to bounce back as soon as the company declares its first quarter results and especially if they meet their projections or outperform the projections,” he said.

Caverton recently received a two-year contract extension from Total Exploration and Production Nigeria Limited. Also, Caverton is expecting a new AW139 helicopter which will be devoted to its long-term contract with Shell Petroleum Development Company.

Also, Caverton  on  Wednesday notified the NSE  that it will operate the first commercial aviation training centre in the African region in a move to diversify its income base and deliver higher returns to shareholders in the years ahead.

Preparatory to the establishment of the centre, has signed a contract with  CAE Aerospace  to build the training facility at the Murtala Muhammed International Airport, Ikeja, Lagos.

“The collaborative effort will have CAE providing a turnkey solution that will include the start-up, maintenance and operation of the centre for a specified period pending the full transfer of knowledge and skill-sets.

“This new development is poised to strengthen Caverton’s position as a leading provider of aviation logistics and training services in the sub region,” the company said.

 

 

[This Day]