Caverton Offshore posts 73% profit decline amid COVID-19

Caverton Offshore Support Group Plc has reported a profit after tax of N1.18 billion for the financial year 2020, down from N4.38 billion in the previous year.

The company’s profit before tax fell to N1.26 billion last year from N7.24 billion in 2019, according to its audited results for the year ended Dec. 31, 2020.

Its revenue dropped to N32.17 billion from N34.98 billion amid the impact of the COVID-19 pandemic.

Caverton said in a statement on Tuesday that the results came even in the face of the serious negative impact that the COVID-19 pandemic had on business operations in Nigeria and the rest of the world.

It said like every other business in the country, it had to battle with the lockdowns, travel/movement restrictions due to the pandemic which resulted to “exceptionally low business activities” during the year.

The Chief Executive Officer, Mr Bode Makanjuola, said the results further highlighted the continued commitment of streamlining its operations in the face of tough economic conditions and reduction of activities by international and local oil and gas companies which continued to impact the service sector of the industry.

He said, “Apart from our continued focus on cost efficiency, evident from the decline in operating costs by eight percent in 2020, (compared to 2019), we are equally focused on further expanding our business model and service offering.

“Our Maintenance Repair and Overhaul facility and our Simulator Training facility, both in Lagos, are almost ready to officially commence business operation in the second half of 2021 and, when completed, will herald a new age in the Nigerian aviation sector and better fortune for the company and industry at large.

Makanjuola said the marine service sector had been impacted negatively by the reduction in patronage and services, “we are actively restrategising and positioning the company to pursue opportunities within and out of the oil and gas sector.”

Caverton is a provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria.