On Tuesday, May 8th, Caverton Offshore Support Group Plc held its 9th Annual General Meeting where a 15kobo dividend per share was declared.
This is the first dividend the company is paying its shareholders in three years. In addition, it is the biggest ever dividend declared by the company; followed only by the 12.5kobo it declared for the financial year ended December 2013.
The company’s Chairman, Aderemi Makanjuola, while addressing shareholders at the AGM, attributed Caverton’s revenue growth and profitability in 2017 to a general increase in oil production, a stabilized exchange rate, among other factors. He also expressed optimism for 2018, while projecting increased profitability for the company.
Also speaking at the event was the company’s Chief Executive Officer, Mr. Bode Makanjuola who thanked the shareholders for their support, while assuring of the company’s dedication more. According to him, Caverton is positioned to generate more revenue this year and improve bottom-line, especially in light of the new contracts it signed, the acquisition of 11 new helicopter fleets, etc.
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. -Bode Makanjuola
Meanwhile, shareholders’ opinion about the 15kobo dividend differed because while some commended it, others expressed displeasure over it. Patrick Ajugo, a shareholder, though commending the company’s efforts, said there is the need to have a trackable dividend policy. He frowned at the 15kobo dividend while expressing the need for more to be done.
Another shareholder, Moses Ogundeji, commended the 15kobo dividend while calling for more in subsequent years.
Some shareholders were however unsure whether Caverton can sustain its 15kobo dividend or revert back to its lesser pays in previous years. According to Nona Awoh (a shareholder), the capital-intensive nature of the business may require it to resort to ploughing its profit into running the business.
Recall that the company has begun on a good note this year, having acquired eleven new helicopters and recently marked the commencement of its contract with Chevron Nigeria Limited. Global oil prices have also been favourable so far, a situation that presents immense growth opportunities for the company. It is therefore in for good times, as it could potentially earn higher revenue this year, increase its profit and hopefully, pay higher dividends to its shareholders.
The company reported a turnover of ₦20.5 billion in 2017, marking a 6% increase compared to ₦19.3 billion that it generated in 2016. In the same vein, profit before tax grew from ₦1.1 billion in 2016 to ₦3.9 billion in 2017.
Caverton Offshore Support Plc is a marine and aviation logistics company which operates in Nigeria’s oil and gas [upstream] sector. Caverton was incorporated in 2008 and positioned for the acquisition of Caverton Marine Limited and Caverton Helicopters Limited, two previously existing logistics companies that were incorporated in 1999 and 2002 respectively. In 2014, it became Nigeria’s first offshore support company to be listed on the Nigerian Stock Exchange.
Its shares are currently trading at ₦2.61 in today’s trading session on the Nigerian Stock Exchange.
Airtel Nigeria announces appointment of Surendran as new Chief Executive Officer
Airtel Nigeria, has announced the appointment of Mr C. Surendran as the new MD/CEO with effect from August 1, 2021.
Telecommunications giant, Airtel Nigeria, has announced the appointment of Mr C. Surendran as the new Managing Director and Chief Executive Officer with effect from August 1, 2021.
Surendran would be replacing the outgoing Managing Director and Chief Executive of Airtel Nigeria, Olusegun Ogunsanya, who has been elevated to the position of Chief Executive Officer of Airtel Africa Plc with effect from October 1, 2021.
According to a report from the News Agency of Nigeria, this disclosure is contained in a statement issued by Airtel on Wednesday, May 5, 2021, in Lagos.
The statement says that Surendran would also be appointed to the Executive Committee (ExCo) as Regional Operating Director, reporting to the CEO of Airtel Africa plc, and onto the Board of Airtel Networks (Nigeria) Limited.
Airtel in its statement said, “Surendran has been with Bharti Airtel since 2003 and has contributed immensely in various roles across customer experience, sales and business operations.
He was the Chief Executive Officer of Karnataka, which is the largest circle in Airtel India, with over one billion dollars in revenue.
Surendran delivered an exceptional performance with significant movement in Revenue Market Share (RMS) over the last few years, currently at 54 percent. He has over 30 years of business experience, including 15 years at Xerox.’’
Airtel said that Surendran would transition into his new role from June 1, 2021, and spend the time onboarding into the business until July 31, 2021.
In case you missed it
It can be recalled that a few days ago, Airtel Africa Plc, a leading provider of telecommunications and mobile money services in Nigeria and 13 other countries, announced the appointment of Mr Olusegun Ogunsanya as the new Chief Executive Officer, following the notice of retirement given by the current Managing Director/Chief Executive Officer, Raghunath Mandava, to the Board.
In the notification sent by Airtel Africa to the Nigerian Exchange, Ogunsanya is expected to join the board of Airtel Africa with effect from October 1, 2021.
Our First Bank loan is being serviced, reduced by 30% in 2 years – Honeywell Group
The credit facilities accessed from First Bank were granted after due negotiations, with the necessary documentation and in line with regulatory policies and industry standards.
The Honeywell Group has said that its loan with First Bank is being serviced as the conglomerate had reduced the facility by 30% in the last two and half years.
This was disclosed by the Group via a statement issued on Sunday and seen by Nairametrics.
According to the statement, the company and the bank have had a professional business relationship since 1975, which preceded the group’s investment in the bank over a decade later.
According to the Honeywell Group, the credit facilities accessed from First Bank were granted after due negotiations, with the necessary documentation and in line with regulatory policies and industry standards.
The Group further explained that following agreed terms, its facilities are adequately secured with First Bank with collaterals in place at over 170% of forced sales value and 230% at open market value.
It stated, “In 2015, First Bank under the directive of the Central Bank of Nigeria, drew our attention to a 2004 circular (BSD/9/2004) which requires that insider related facilities must not exceed 10% of paid-up share capital.
Based on this directive we subsequently entered negotiations with the bank to agree on an appropriate repayment structure and the final negotiated position was duly approved by the CBN.
In addition to the above, First Bank, on the directive of CBN, requested additional security in the form of FBN Holdings Plc shares held by the Chairman of Honeywell Group, Dr Oba Otudeko citing a 2001 circular. This was duly provided through an authorisation to place a lien on the shares.”
Honeywell Group has continued to meet all its obligations on its facilities with the bank according to agreed terms and has reduced its exposure by nearly 30% in 2.5 years. The facilities were charged at market rate and the bank continues to earn significant interest therefrom.”
What you should know
- Nairametrics had reported when the Central Bank of Nigeria directed Honeywell to fully repay its obligations to First Bank within 48 hours, warning that failure to do so would cause the CBN to take regulatory measures against the insider borrower and the bank.
- The Chairman of Honeywell Group, Oba Otudeko, also served as Chairman of FBN Holdings Plc until he was asked by the apex bank to go along with other directors on Thursday.
- The apex bank had noted in a letter last Wednesday that First Bank had yet to comply with regulatory directives on divesting its interest in Honeywell despite several reminders.
- Also, the CBN asked First Bank to forward evidence involving the divestment of interest in Honeywell Flour Mills and Bharti Airtel Nigeria Ltd within 90 days.
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