Caverton Offshore Support Group Plc has recorded a revenue of N31.99 billion in the financial year ended December 31, 2023, representing a growth of 9.4 per cent compared with N29.23 billion recorded in the financial year ended December 31, 2022.
The company said its operations were impacted by the tough operating environment in Nigeria during the financial year, occasioned by the fluctuations in exchange rate and high cost of doing business. As a result, it incurred huge foreign exchange losses.
The group’s gross profit in the financial period under review rose to N7.2 billion as against N3.69 billion recorded in 2022, increasing by 95 per cent.
Despite the increase in gross profit, its loss after tax rose by 147 per cent to N12.75 billion, from N5.16 billion in 2022.
Speaking to the performance, chief executive officer, Caverton Offshore Support Group Plc, Olabode Makanjuola, noted that the operating business environment in the country was quite challenging in 2023.
“Across the economy, businesses experienced rippling operating costs spawned by extensively higher inflation, a substantial devaluation of the Naira, and a rise in energy costs,” he noted.
Makanjuola, however, assured shareholders who attended the virtual Annual General Meeting that the Group has taken proactive steps to mitigate the negative impacts and is confident in the strategies put in place for the future growth.
“As we move forward, we remain committed to capitalising on the abundant opportunities available in the global and African markets. We will continue to deliver quality marine and aviation logistics services to support companies whithin the oil and gas industry
“Our strategic focus will be on consolidating our market share in aviation and marine sectors while exploring new and more profitable areas for investment,” he said.
Chairman, Caverton Group Plc, Aderemi Makanjuola, in his statement also assured shareholders that the group will continue to focus on operational efficiencies and cost management which is crucial for maintaining profitability amidst fluctuating revenues. While responding to questions from shareholders, he said,
“The group is doing more to reap the benefits of diversification. We are building boats for customers at no cost to our company. We have entered into partnership with a Chinese company to make boat building more profitable and affordable for our customers as we now target electric boats.”
He also assured shareholders that more business contracts are being secured from outside the country. “ We have contracts with Benin Republic, Ivory Coast , Senegal and many more to either train their pilots or service their helicopters.”
Meanwhile, shareholders who attended the virtual AGM commended the board and management of Caverton for their tenacity and ability to navigate the turbulent economic situation in the country.
A shareholder, Bakare Adebisi, however noted the rising cost of operations of the group and asked that efforts be made to check a further increase.
Another shareholder, Boniface Okezie said the loss recorded by the group deprived shareholders of dividend, suggesting that management should seek alternative funding sources to grow its business. He specifically asked the board to seek cheap funding via the capital market.
Another shareholder, Adio Alex, wants the group to be wary of foreign loans which are impacting negatively on its profitability.
The chairman who responded to the questions from shareholders, noted that the company is not leaving any stone unturned to take charge of its finances.
His words: “ We now have a new and experienced chief financial officer who is working with our bankers to restructure our loans. We are now having an agreement with our creditors to pay back our loans in Naira instead of the Dollar arrangement we had with them.”
Makanjuola mentioned the possibility of Caverton visiting the capital market to raise money in the near future as the company is currently going through a re-assesment.
“Our share is doing well on the stock market and we will do everything for it to be better,” he said.
