Financial Difficulties Drag Caverton’s Revenue Down To N13.9bn, Profit Plunges by 73.9%

Caverton Offshore Support Group has reported a N4.1bn decline in revenue, while profit was also down by N2.86bn due to operational and financial difficulties.

The company said on Monday that revenue plunged by 22.7 per cent to N13.96bn compared to the N18bn recorded in the half year of 2021.

Profit After Tax fell by 73.97 per cent to N203m from the N780m recorded in 2021.

The company which provides marine, aviation and logistics services to local and international oil and gas companies disclosed that earning per shares dropped to 6 kobo from 23 kobo in 2021.

Foreign exchange issues and the scarcity of Jet A1 fuel has been a major setback for airlines and other operators.

In May 2022, Caverton lost its Chevron contract to Bristow Helicopter, a loss that has impacted on its dwindling revenue.

The company recently appointed Ibrahim Chafe Bello as Managing Director and Accountable Manager of Caverton Helicopters Limited, a subsidiary with effect from July 1, 2022.

Caverton’s Chief Executive Officer, Mr. Bode Makanjuola said, “The company faced tremendous financial and operational head winds in the first half of the year which necessitated the need for the management and the board of Caverton to urgently review the company’s management structure and business portfolio as a Group.

“We recently announced the appointment of a new Managing Director for Caverton Helicopters, restructured Caverton Offshore Support Group’s executive management and diversified our aviation business from oil and gas aviation logistics to third party training and maintenance, via our recently commissioned Maintenance Repair and Overhaul (MRO) facility and our Caverton Aviation Training Centre (CATC), both in Lagos.

“These announcements have been well received by the wider aviation and oil and gas industry and we are confident this strategy would yield positive financial fortunes for the Group whilst addressing this infrastructure gap in the aviation sector of Nigeria and sub-Saharan Africa.”