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.