By love-89.com Kayode Tokede
In a recent interview, Caverton Offshore Support Group Plc’s Chief Executive Officer, Olabode Makanjuola, discussed the challenges and achievements the company faced during the fiscal year ending December 31, 2023. He pointed out that the operations of the group were significantly impacted by exchange rate fluctuations and the high cost of doing business in Nigeria, Africa’s most populous nation.
Despite these obstacles, Caverton reported a revenue of N31.99 billion, reflecting a 9.4 percent increase compared to N29.23 billion in 2022. The group’s gross profit surged to N7.2 billion, up 95 percent from N3.69 billion the previous year. However, it also recorded a loss after tax that escalated by 147 percent, reaching N12.75 billion, compared to N5.16 billion in 2022.
Makanjuola described the operating business environment in Nigeria as particularly challenging throughout 2023. “Businesses across the economy faced spiraling operational costs due to significantly higher inflation, a considerable devaluation of the Naira, and escalating energy costs,” he shared.
Nevertheless, he reassured shareholders attending the virtual Annual General Meeting that proactive measures have been implemented to mitigate these adverse effects. “We’re confident in our strategies for future growth,” he stated. “As we look ahead, we remain committed to seizing the abundant opportunities in both global and African markets. We will continue to deliver high-quality marine and aviation logistics services to support companies within the oil and gas industry.”
Makanjuola emphasized that the group’s strategic focus will involve consolidating its market share in aviation and marine sectors, while also seeking new and more profitable investment avenues.
In a statement, the Chairman of Caverton Group Plc, Aderemi Makanjuola, reassured shareholders that the company will continue prioritizing operational efficiencies and cost management to maintain profitability, especially in the face of fluctuating revenues. Responding to shareholder queries, he mentioned, “The group is working diligently to maximize the benefits of diversification. We are constructing boats at no cost to our company for our customers, and we have partnered with a Chinese firm to enhance profitability and affordability in boat building, now targeting electric boats.”
He added that the company is also securing more contracts from international markets, including agreements with the Benin Republic, Ivory Coast, and Senegal to either train pilots or service helicopters.
Shareholders attending the virtual AGM commended the board and management for their resilience in navigating the turbulent economic landscape. However, shareholder Mrs. Bakare Adebisi raised concerns about the rising operational costs and urged the management to take measures to prevent further increases.