Caverton Offshore Support Group has reported a significant financial impact due to Nigeria’s challenging economic conditions in the 2023 financial year. The company experienced a substantial foreign exchange loss, leading to a loss after tax of N12.75 billion, a 147% increase from the previous year.
Despite these challenges, the company recorded a 9.4% revenue growth, reaching N31.99 billion. However, the rising costs of operation, particularly fuel and foreign exchange, eroded the company’s profitability.
Olabode Makanjuola, CEO of Caverton Offshore Support Group, acknowledged the difficult operating environment, citing high inflation, currency devaluation, and increased energy costs. He assured shareholders that the company is taking proactive measures to mitigate these challenges and position itself for future growth.
To enhance profitability and diversify its revenue streams, Caverton is exploring new opportunities in the global and African markets. The company is also focusing on operational efficiencies and cost management to maintain profitability amidst fluctuating revenues.
Aderemi Makanjuola, Chairman of Caverton Group, highlighted the company’s efforts to build boats for customers at no cost and its partnership with a Chinese company to make boat building more profitable and affordable. Additionally, Caverton is securing contracts from countries like Benin Republic, Ivory Coast, and Senegal.
While the company faces significant challenges, its strategic focus on diversification, cost management, and international expansion positions it to navigate the turbulent economic landscape and emerge stronger.
