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 a profit after tax(PAT) of N595 million for the half year ended June 30, 2017. This is a recovery from a loss of N2.432 billion recorded in the corresponding period of 2016 and an indication that shareholders will smile at the end of the year.
The unaudited results showed that COSG recorded revenue of N10.1billion, up from N9.1 billion in 2016. Administrative expenses were reduced by 61 per cent from N5.031 billion to N1.953 billion. Finance cost increased marginally from N735 million to N759 million. Consequently, COSG ended the year with PAT of N595 million, compared with a loss of N2.432 billion in 2016.
According to the company, the increase in revenue during the quarter was due to increase in charter flights and vessel agency operations, which also affected its operating costs increasing by nine over last year’s result.
However, the company said on the other hand, it has been able to contain the administrative expenses during the period by about 61 per cent arising majorly from the impact of the government intervention in stabilising the foreign exchange rate.
As a result the earnings per share increased to 18 kobo from a negative 73 kobo same period last year.
Commenting on the results, the Chief Executive Officer (CEO) of COSG Plc, Mr. Bode Makanjuola said its ability to post this impressive performance was a result of the shared will and determination of the company’s management with the support of its board of directors to manage its overall expenses while maximizing company revenue potential.
“With the revenue increasing by 11 per cent and the profit before tax by 140per cent over 2016 half year result, we remain determined to ensure optimal use of the business resources,” Makanjuola said.
He added that the results further highlight the commitment of streamlining its operations in the face of challenging operating business environment, as well as its continued focus on cost efficiency.
“The board is very optimistic that the Group is in a good position to cope with the tough operating business conditions,” he said.
Makanjuola recently said that when the company’s Maintenance Repair and Overhaul (MRO) facility in Lagos, is completed, it will herald a new age in the Nigerian aviation sector and better fortune for the company and industry at large.