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Tag: Caverton Offshore Support Group Plc

  • Caverton targets increased profitability as company holds 2024 AGM

    Caverton targets increased profitability as company holds 2024 AGM

    The Board of Directors of  Caverton Offshore Support Group PLC has hinted on the plan to carry out a business restructuring  program that will cut across all its subsidiaries to enhance performance and profitability.

    Mr. Olabode Makanjuola, Chief Executive Officer of the Group dropped the hint at the 2024  virtual Annual General Meeting ( AGM) held  on Friday November 21, 2025

    Makanjuola noted that the planned restructuring program will touch the board as well as all the subsidiaries of the group to enhance efficiency and boost profitability.

    Responding to questions from shareholders  on the group’s financial performance in 2024 and the plans for the years ahead, he said 2024 was a difficult year for businesses in the country which includes Caverton. “We are going through a massive overhaul in our businesses. Cost is  being pruned in the helicopter business. Improved revenue is certain,” he assured.

    Speaking on other new measures being taken to improve the group’s revenue and to return it to profitability, he disclosed that Caverton’s partnership  with The National Agency for Science and Engineering Infrastructure  (NASENI ) to drive its drone business  is ongoing while the fixed wing Cargo business  will commence in first quarter of 2026, this he said will help improve the group’s revenue.

    He added: ” On the Marine Business and partnership with Lagos State government, Makanjuola said the company had built 15 boats  for Lagos State government  out of the targeted 25.  And the Electric ferry ( 30 seaters) will be delivered soon. Speaking further, the CEO said  that earlier this year in Abuja, the company collaborated for the formalisation of NNPC shipping joint venture UNITY Shipping Worldwide, a joint venture that brought together NNPCL, Caverton and Stena Bulk, a Swedish shipping company.

    To address  the gender balance,  Caverton  Marine Limited, the shipping subsidiary of Caverton Offshore Support Group, last month appointed the  former Euronav London General Manager, Pauline Sessou-Diop, as its new Chief Commercial Officer.

    The newly appointed CCO is expected to lead the firm’s commercial and business development strategy, with a particular focus on eco-efficient fleet expansion across oil, gas, and bulk marine transportation.

    Her role will also emphasize strengthening Caverton’s footprint in the West African market.

    Mr. Aderemi Makanjuola, chairman, Caverton Offshore Support Group Plc who also alluded to the restructuring plan of the group assured shareholders that the financial report which will be presented at the next AGM will be far better than the 2024 report.

    Addressing the challenge of foreign exchange losses which has stalled the growth of the group in recent times, he revealed that  “we are adjusting, more dollar denominations going to naira. It’s difficult but we are moving.”

    Meanwhile key shareholders association groups represented in the company expressed divergent views about the results of the company for 2024 while suggesting the way forward.

    Mrs Bisi Bakare, a shareholders group leader, wants the group to be gender balanced, calling more for the infusion of female directors into the board.

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    Adio Alex, a leader of another shareholders’ group commended the board for sustaining the business despite the challenges.  While he acknowledged that losses persist, he blamed it on the economic issues like exchange rate etc.

    “2025 is better than the previous years but we are still rotating, not moving forward. He suggested that the group change its borrowing structure.”

    On his part, Comrade  Oguntoye Lawrence, a shareholder, appreciates the performance of the revenue  in 2024, which is better than 2023.  He noted that the Helicopter contributed to the bulk but lamented that FX wiped off the gains.

    Meanwhile, two shareholders, Ajudua Patrick  and Sunny Nwosu raised the need for Caverton to raise fresh capital either by Rights Issues or Public Offer to improve liquidity level of the company.

    A review of Caverton’s financial performance in 2024 showed that revenue gre to N40.18 billion, up from N32.99 billion in 2023. Gross profit increased to N8.42 billion, compared to N7.16 billion in 2023.

    However, a loss before tax of N53.67 billion, a sharp increase from the N12.69 billion loss in 2023.

    Loss after tax  stood at N53.86 billion, compared to N12.74 billion the previous year. Total assets declined to N76.16 billion, down from N79.32 billion. Shareholders’ funds ended at ( N54.61 billion), from a ( N747.64 million) in 2023.

  • Caverton returns to profitability with N2.09b pre-tax profit

    Caverton returns to profitability with N2.09b pre-tax profit

    • New strategic expansion in marine tech

    Caverton Offshore Support Group Plc  yesterday announced its unaudited financial results for the period ending 30 June 2025, showcasing a robust financial recovery with a profit before tax of N2.09 billion, up from a loss in the same period last year.

    In line with its strategic growth agenda, Caverton is actively repositioning its marine and aviation divisions. Notably, the Group has entered into a groundbreaking strategic partnership with Chinese electric marine engine manufacturer Explomar. This collaboration aims to develop Nigeria’s first all-electric OMIBUS ferry, pioneering sustainable marine transportation in the region. Additionally, Caverton is advancing several other innovative boat-building and design projects, leveraging cutting-edge technology and sustainable practices to enhance its marine fleet and capabilities.

    On the aviation front, Caverton Helicopters is refining its charter business while expanding its Maintenance and Training business units.

    The Group recently diversified into unmanned aerial vehicles (UAVs), opening new avenues for innovative aerial solutions in the oil and gas, security, and logistics sectors.

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    Group Chief Executive Officer Mr. Bode Makanjuola emphasized the management’s commitment to sustainable growth and diversification. He highlighted efforts to mitigate foreign currency risks through reduced foreign liabilities and rigorous cost controls across all operations. Mr. Makanjuola expressed confidence in the company’s prospects, noting the positive momentum driven by ongoing government reforms and macroeconomic stabilization, which have contributed to improved profitability.

    He further underscored Caverton’s strategic collaborations, including the recent partnership with Explomar, as vital to future growth. “Our collaboration with Explomar marks a significant milestone in our commitment to innovation and sustainability. Developing Nigeria’s first all-electric ferry exemplifies our dedication to environmentally responsible solutions that will revolutionize maritime transportation,” he stated. “This project, along with other vessel design initiatives, positions Caverton as a leader in green maritime technology in Africa.”

    Looking ahead, Caverton remains committed to its long-term growth strategy, investing in sustainable projects and strategic alliances that enhance its operational resilience. The Group’s recent joint venture partnership with NNPC and Stena Bulk,  initiated in February 2025, continues to be a key milestone in shipping capacity development, with operations set to commence later this year, further strengthening Caverton’s maritime capabilities.

    In conclusion, Caverton reaffirms its dedication to safety, quality, and security across all operations. By embracing innovative, environmentally sustainable solutions and strategic collaborations, the company aims to deliver long-term value to stakeholders while supporting Nigeria’s economic development.

    A review of the financial performance of the group showed that revenue stood at N16.1 billion as against N18.8 billion in H1 2024. Gross Profit  was N9.0 billion compared with  N2.9 billion in H1 2024.

    Total Operating Profit/(loss), (excluding Finance Cost), is N11.7 billion (N1.1 billion in H1 2024).

    Profit/(Loss)-Before-Tax is N2.1 billion (Loss N3.7 billion in H1 2024)

    EPS reversed from a loss of -0.54 kobo to  0.62 kobo.

    Profitability ratios showed that Gross Margin stood at 55.9 per cent as against 15.2 per cent in H1 2024.

    Net Profit(loss) Margin is 12.9 percent from -19.7 per cent  in H1 2024.

    EBIT/Interest Expense is 27.2 per cent as against -11.1 percent  in H1 2024.

    The group’s capital structure ratios indicate a Net debt/Equity is -1.5x (-2.1x in 2024). Long-Term Debt/Total capitalization is -1.9x (-1.9x in 2024), Asset turnover is 0.20x (0.12x in 2024) and EBIT/Capital Employed is 0.28 percent  (-0.13% in 2024).

  • Caverton Group records 9% revenue growth in FY 2023

    Caverton Group records 9% revenue growth in FY 2023

    • Firm suffers huge FX loss

    The operations of Caverton Offshore Support Group Plc was affected substantially by the fluctuations in exchange rate and high cost of doing business in Nigeria in the financial year ended December 31, 2023.

    However, the group recorded a revenue of N31.99 billion, representing a growth of 9.4 percent compared with N29.23 billion recorded in the financial year ended December 31, 2022.

    The group’s gross profit in the review for the financial period ended December 31, 2023 stood at N7.2billion as against N3.69 billion recorded in 2022, increasing by 95 per cent.

    Loss after tax in the review financial year stood at 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.

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    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 within the oil and gas industry.

    “Our strategic focus will be on consolidating our market share in aviation and marine *secrirs* 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 eaither  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, Mrs 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.

    The Chairman 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 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.