Nigeria’s leading aviation and marine company, Caverton Offshore Support Group revealed its Maintenance Repair and Overhaul (MRO) facility and Simulator Training facility will commence business in the second half of 2021.
This was revealed by the company’s Chief Executive Officer, Mr Bode Makanjuola via a press release published on the website of the Nigerian Stock Exchange.
“Our Maintenance Repair and Overhaul (MRO) facility and our Simulator Training facility, both in Lagos, are expected to officially commence business operation in the 2nd half of 2021 and when completed will herald a new age in the Nigerian aviation sector and better fortune for the Group.”
The facility is expected to boost revenues for the company in the second half of this year and beyond. Caverton has endured a tough 2020 impacted negatively by the Covid-19 induced lockdowns which affected the oil industry which depends largely on its services.
In its first-quarter 2021 results, the company posted revenue of N8.1 billion representing a 3.8% increase when compared to the N7.9 billion posted same period in 2020. Earnings per share printed at 16 kobo compared to 13 kobo same period in 2020. Caverton claimed it is still facing the consequences of Covid-19 as activities of international and local oil and gas companies remain subdued.
“This result came even in the face of the serious negative impact that the Covid-19 pandemic continues to have on business operations in Nigeria and the rest of the world, which has caused significant reduction in activities by International and Local Oil and Gas companies who are the major clients of Caverton.”
Caverton currently trades at N1.0 per share with a price to earnings ratio of 4.85X. It is also trading at a massive discount to book value posting a price to book ratio of 0.293x. Caverton share price is down 6% YTD but gained 9% last week.