Caverton Offshore Support Group Plc, (COSG), Nigeria’s foremost indigenous offshore logistic services provider, on Tuesday declared a dividend of 15kobo per ordinary share of 50kobo each for its shareholders during its 9th Annual General Meeting in Lagos.
Caverton, which was listed on the Nigerian Stock Exchange (NSE) four years ago, grew Profit after Tax (PAT) by 328 percent from N612.28million in the financial year ended December 31, 2016 to N2.62billion in the review financial year ended December 31, 2017. Profit before Tax (PBT) increased by N2.81billion or 256 percent from N1.10billion in 2016 to N3.91billion in 2017.
The management of Caverton was shrewd in cost management in the review financial year to achieve a robust bottom-line as revenue only grew marginally by 6.4 percent to N20.54billion in 2017 compared to N19.31billion recorded in 2016.
Over the years, the group has positively impacted the socio economic development of the country through various stakeholders; client, employees and communities alike. Its global workforce has equally grown remarkably with just below 700 employees in West Africa. With its rapid expanding fleet of aircraft and vessels coupled with its acquisition of key offshore assets and strategic partners, the group is able to provide a diverse range of services to its clients ensuring objectives are completely fulfilled, offshore to land.
COSG also takes pride in putting safety and quality at the core of its business and has been rewarded for this by its growing customer base. In September 2014, September Shell Petroleum Development Company (SPDC) awarded the company the Shell ‘Safety Conscious Award’ recognising its safety conscious effort.
Welcoming stakeholders to this year’s meeting, Aderemi Makanjuola, chairman of Caverton Group, said the impressive record of the company’s increase in revenue was due to stability of exchange rate, Nigerian economic growth courtesy of the massive government intervention in the agriculture sector and a ramp up oil production.
He also gave a pass mark to the company’s financial performance in spite of enormous challenge of economic environment in 2017. This,he attributes to continued effective execution of his team strategy as they innovate and break barriers to boost bottom line in building a client-centric group and generate sustainable long-term value of shareholders.
As he professes a prosperous business future in 2018 and beyond, Makanjuola seized the opportunity to thank the ‘Cavertonians’ for their value contributions and deep commitment to the company.
Thanking their esteemed shareholders for their continued support, the Chief Executive officer of the company, Mr. Bode Makanjuola assured them that the company would continue to wax strong. “In 2017, throughout a period of profound political and economic change around the world, our company remained steadfast in dedication to our clients in the host communities we serve while earning a fair return for our stakeholders. Also, our financial results for year ended in 2017 displays positive performance confirming our company’s ethos to deliver a cost effective and efficient service to our customers”.
He concluded, “Our desire is to continue to be a strong and financially sustainable group that puts our stakeholders at the heart of everything we do.”
Though shareholders of Caverton Offshore Support Group Plc expressed the opinion that their company could do better in the years ahead; they were unanimous in applauding the Board of Directors of the group for paying a dividend of 15kobo per share in the review financial year.
Moses Ogundeji, a shareholder affiliated to the Independent Shareholders Association of Nigeria (ISAN) at the AGM held at the Civic Centre in Lagos, praised the company for paying 15kobo per share as dividend but urged the Board of Directors to make the largesse better subsequently.
Patrick Ajugo, another shareholder however differs, saying that the company must come up with a track able dividend policy. According to Ajugo, a dividend of 15kobo per share out of an Earning per Share (EPS) was not good enough. He however commended the Company for the excellent performance of its Marine Business, which he said must be given a greater attention.
Nona Awoh, one of the shareholders, had a reservation on the ability of the company to sustain the dividend declared on Tuesday as he said the business the group runs is capital intensive and that it needs all the capital available to grow its businesses at the moment.