Caverton is first oil services company to list on NSE

Caverton will list on the Nigerian Stock Exchange (NSE) on May 20, according to a statement issued Sunday night by the leading provider of marine, aviation and logistics services to local and international oil and gas companies in the country.

When the company’s 3.35 billion shares are listed for trading at N9.50 per share, it will become the first Nigerian oil services company to go public.

This historic move is considered a major plus for the federal government policy of encouraging local capacity and ownership in the oil and gas sector.

Caverton Offshore Support Group (Caverton) is the holding company of Caverton Helicopters and Caverton Marine Limited.

The two companies that have grown dramatically to become industry leaders in the oil and gas aviation and marine sub-sectors.

These two highly technical and capital intensive areas were previously dominated by foreign firms.

“We are extremely pleased as Caverton enters its next phase of growth as a listed company,” Mr. Aderemi Makanjuola, chairman of the company, said.

“Leveraging on our expertise and execution capabilities, we plan to embark immediately on fleet expansion and the development of new service areas in the offshore marine and aviation sectors.

“We are also keen on exploring entry into new markets.

“We plan to create a balanced and diversified portfolio and we are pleased to have strong technical partners on board with us. This is in line with our strategy for sustainable growth and we are confident that the company will continue to achieve its growth aspirations while fostering indigenous participation in the Nigerian oil and gas industry.”

In the 2012 financial year, the company’s turnover rose 47.6% to N16.132 billion, from N10.928 billion in 2011.

Profit after tax and exceptional items jumped to N1.035 billion from N60.373 million in the previous year, an increase of 1,625%.

Even though its operations predated the passage of the Local Content Act, Caverton has been seen as the poster-child of indigenous capacity and ownership since 2010 when one of its subsidiaries, Caverton Helicopters, edged out long-established foreign operators to win a $648 million, multiyear contract from Shell Petroleum Development Company for the supply and operation of seven helicopters.

It is said to be the biggest contract ever awarded by the oil multi-national to an indigenous company.

Caverton has gone on to win more contracts from other oil majors such as Chevron, ExxonMobil, Total and Addax Petroleum.

In 2013, the company commenced its first international operation after it won the contract to provide passenger transfer and pipeline surveillance services to the Cameroon Oil Transport Company (COTCO), a subsidiary of ExxonMobil.

Caverton Marine, an indigenous shipping companies, commenced operations in 1999 while Caverton Helicopters a helicopter charter, sales and maintenance company was established in 2002.  Both companies were consolidated to form Caverton Offshore Support Group in 2008.