Caverton Offshore Support Group Plc (COSG), a provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria has announced increases in profit before tax (PBT) and profit after tax (PAT).
The audited results showed revenue of N20.5 billion in 2017, up from N19.3 billion in 2016. Operating profit (excluding other income) stood at N4.2billion, compared with N2.2 billion in 2016. PBT rose from N1.1 billion to N3.9 billion in 2017, while PAT improved from N2.6 billion, from N612 million in 2016.
Gross margin was 35 per cent in 2017, down from 40 per cent in 2016, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin improved to 28 per cent, from 17 per cent in 2016. Similarly, net profit margin improved from three per cent to 13 per cent.
Commenting on the results, the Chief Executive Officer of COSG, Mr. Bode Makanjuola said that the company remains the leader in offshore support logistics in Nigeria. He stated that part of our strategy to weather the current challenging business environment of the past couple of years is to continue to focus on cost efficiency without compromising on our safety standards.
He added that the company will shortly commence its five- year Chevron contract from April and is confident of securing and renewing support contracts with new and existing clients alike.
“The implementation of our strategy to increase service offerings is also ongoing as the construction of the Maintenance, Repair and Overhaul facility in Ikeja Lagos is at an advanced stage. We continue to explore other innovative solutions in support of deep and shallow water operations in both marine and aviation business,” he said.
Makanjuola disclosed that they have been able to contain the administrative expenses arising majorly from the impact of the government intervention in stabilising the foreign exchange rate market as well as consistent paying down of their loan which resulted in lower finance charge.
He said that as Nigeria gradually moves out of recession, the firm remains optimistic for an improved business operating environment.
“The impending commencement of our helicopter service contract for Chevron, as well as the completion of our MRO in Lagos are just some of the positive developments we are looking forward to. Meanwhile we are doubling efforts to refocus our marine business strategy and are confident of positive results going forward,” he said.
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