COVID-19 Has Caused Suspension of Some Contracts—Caverton

By Dipo Olowookere

The Chief Executive Officer of Caverton Offshore Support Group Plc, Mr Bode Makanjuola, has said the coronavirus (COVID-19) pandemic has resulted into huge losses to businesses in the world.

He said at the beginning of this year, his company had anticipated good fortunes for its marine business as the firm had been pre-qualified for a number of contracts. However, he said the present global health crises turned things south.

According, Caverton had also hoped for the completion of its Maintenance, Repair and Overall (MRO) facility and was to take delivery of the first ever helicopter flight simulator in sub Saharan Africa, but such no longer possible now.

But Mr Makanjuola said his firm remains resolute to maintaining the same level of service its clients were accustomed to whilst preserving shareholder value.

A while ago, the organisation released its audited results for the year ended December 31, 2019 and Caverton declared a profit before tax of N7.2 billion and an after-tax profit of N4.3 billion.

In the period, revenue increased by 5 percent, while direct operating costs increased by 3 percent, supporting the earnings per share which also increased by 15 percent when compared to 2018 financial year.

Mr Makanjuola, while commenting on the performance, said, “Coming off the back of a good year end, we were looking forward to the next decade with immense optimism.

“Our Maintenance, Repair and Overall (MRO) facility was due for completion and we were to take delivery of the first ever helicopter flight simulator in sub Saharan Africa.

“We also anticipated good fortunes for our marine business as we had been pre-qualified for a number of contracts.

“Unfortunately, the Corona virus pandemic sweeping across the globe has turned 2020 to an annus horribilis which has seen project dates pushed back and potential contraction and indefinite suspension of some contracts.

“As we all come to terms with the unprecedented effects of the pandemic and its negative impact on our economy, financial prudence is our watchword.

“We are mindful that these are extremely challenging times but we remain resolute to maintaining the same level of service our clients are accustomed to whilst preserving shareholder value.”

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