Caverton explains slide in 2016 earnings
• Assures of enhanced result this year
Caverton Offshore Support Group (COSG) has linked its drop in 2016 revenue to decline witnessed in contract scope and rates both in the helicopter, and marine activities due to overall downturn across all sectors of the economy.
However, it expressed optimism that the company’s commercial Maintenance Repair & Overhaul (MRO) will greatly boost the diversification of its revenue base and improve financial position.
According to the company, apart from conserving foreign exchange internally, revenue from other airline that would use the facility will fetch COSG significant revenue that will go a long to boost its bottom-line going forward.
Speaking at the 8th yearly general meeting of the company in Lagos at the weekend, the Chairman of COSG, Aderemi Makanjuola, assured shareholders that the MRO would be completed and fully operational in 2018.
According to him, when the facility becomes operational it will diversify company’s revenue base across multiple platforms for betterment of all stakeholders.
He said the current downturn in the oil and gas intensified pressure to the group’s financial performance and its operational cash flows, which led to reduction of 17 per cent in its revenue to N19.3 billion, from N23.2 billion.
According to him, profit fell 11 per cent to stand at N7.7 billion against N8.6 billion but total assets rose by 4.7 per cent from N39.5 billion in 2015 to N41.3 billion in 2016.
To deal with the current environment, the chairman explained that the company’s units have been right sizing, monitoring the flow and reviewing their operations
“We are leveraging on our companies to stream line processes, reduce costs and share resources. These efforts will enable us become more resilient as we continue to navigate through rough waters.
“With increasing financial discipline and sharp focus on optimising returns, we will seize opportunities as well as innovate solutions and services to build a long-term and competitive position and capture sustainable returns for our stakeholders,” he said.
He added that the company continues to harness and leverage the distinctive strengths of its businesses, to capture opportunities arising from the local, regional, and global demand for oil sustainable.
The Chief Executive Officer of COSG, Bode Makanjuola, said the company aims to anchor its position as the trusted and preferred logistics solution partner in the industry.
“We have new contracts to commence in the current year and will continue to keep up our core competencies and building up new strengths to keep up our solid track record of satisfying our customers within budget and to the highest safety standards,” the CEO said.