Caverton Offshore Support Group Plc has announced plans for an extensive restructuring across all its subsidiaries following a difficult 2024 financial year in which the company recorded losses exceeding N53bn.
According to a statement made available to The Press on Sunday, the Group’s Chief Executive Officer, Olabode Makanjuola, disclosed the development during the company’s 2024 Virtual Annual General Meeting held on Friday. He explained that the restructuring would span the board and all operating units, with the goal of improving operational efficiency and restoring profitability.
Makanjuola said the year had been tough for many Nigerian businesses, including Caverton, but assured shareholders that cost-cutting efforts in the helicopter division and other operational adjustments were already underway.
He said, “2024 was a difficult year for businesses in the country, which includes Caverton. We are going through a massive overhaul in our businesses. Cost is being pruned in the helicopter business. Improved revenue is certain.”
A review of the company’s 2024 financial results showed that revenue rose to N40.18bn, up from N32.99bn in 2023, while gross profit improved to N8.42bn, compared with N7.16bn the previous year.
Despite this growth, the company posted a loss before tax of N53.67bn, a significant jump from N12.69bn in 2023. Loss after tax also widened to N53.86bn, compared with N12.74bn the year before. Total assets fell to N76.16bn from N79.32bn, and shareholders’ funds deteriorated further into negative territory, closing at N54.61bn from N747.64m in 2023.
The CEO confirmed that Caverton’s partnership with the National Agency for Science and Engineering Infrastructure to advance its drone business is progressing steadily. He also announced that the company’s fixed-wing cargo operations are scheduled to begin in the first quarter of 2026, a move he believes will add significant momentum to revenue growth.
Speaking on developments in its marine division, Makanjuola revealed that Caverton has delivered 15 of the 25 boats it is contracted to build for the Lagos State Government, adding that a 30-seater electric ferry will soon be completed.
He also noted that Caverton formalised its involvement in UNITY Shipping Worldwide earlier in the year, a joint venture between NNPC Ltd., Caverton, and Swedish firm Stena Bulk during a ceremony in Abuja.
He said, “The company had built 15 boats for Lagos State Government out of the targeted 25. And the electric ferry (30-seater) will be delivered soon. Earlier this year in Abuja, the company collaborated for the formalisation of NNPC shipping joint venture UNITY Shipping Worldwide, a joint venture that brought together NNPCL, Caverton, and Stena Bulk, a Swedish shipping company.”
In a bid to strengthen its leadership pool and promote gender balance, Caverton Marine Limited recently appointed Pauline Sessou-Diop, formerly the General Manager of Euronav London, as its Chief Commercial Officer. Her mandate, according to the statement, includes driving the company’s commercial strategy, expanding its eco-efficient fleet, and deepening Caverton’s presence in the West African maritime market.
The Group’s chairman, Aderemi Makanjuola, also addressed shareholders, reaffirming the board’s commitment to returning the company to profitability. He said steps have been taken to mitigate the impact of foreign exchange losses, which have been a major setback for the company in recent years, adding that the company is increasingly shifting its dollar-denominated obligations into naira to ease pressure on its finances.
Shareholders, however, expressed mixed reactions over the various developments. At the AGM, stakeholders led by Mrs Bisi Bakare urged the company to improve gender diversity at the board level. Adio Alex acknowledged the board’s efforts in sustaining operations despite economic headwinds, though he advised management to revisit its borrowing strategy.
Another shareholder, Oguntoye Lawrence, noted that while the company’s revenue improved in 2024, largely driven by the helicopter business, foreign exchange volatility wiped out much of the gains. Additionally, Ajudua Patrick and Sunny Nwosu advocated for fresh capital injection through a rights issue or public offer to strengthen the company’s liquidity.
Caverton’s leadership expressed optimism that ongoing restructuring, operational adjustments, and strategic expansions in drone, marine, and cargo services would position the company for a gradual return to profitability and long-term growth.
