Caverton's CFO, Titilola Adigun, Resign After Revenue Sources Collapsed, New CFO Takeover

Days after AllNews reported that Caverton Offshore, parent company of Caverton Helicopters, revenue sources collapsed, with the company's Q3 revenue dropping by 14.9%, the company's Chief Financial Officer, Titilola Adigun, has resigned from her position. Prior to Adigun's exit, the company's Q3 2020 operating profit also declined significantly, failing to surpass that of Q3 last year.

According to a statement seen by AllNews, Adigun also resigned from the board of Caverton on November 2, 2020. She was replaced with Chesa Okoroafor by the board of Directors of Caverton. Before his new appointment, Okoroafor was the Financial Controller of Caverton Helicopters Limited. Okoroafor first joined caverton in 2010.

Caverton Having Revenue Problem Before Adigun's Exit

Caverton's revenue fell to NGN7.54 billion in Q3 this year, crashing -14.9% from the NGN8.87 billion the company generated in the corresponding period of 2019 third quarter. Operating Profit for Q3 this year failed to surpass the NGN2.77 billion reported for 2019 third quarter, as Caverton recorded NGN2.29 billion in three months of Q3 2020, which falls between July to September.

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The decline occurred at a period Caverton was able to reduce its quarterly expenses, which dropped to NGN5.25 billion in Q3 2020 from NGN6.09 billion of Q3 2019.

Caverton's Revenue Sources On A Decline

The company generates its income from five sources; Helicopter Charter, Helicopter Maintenance, Helicopter/Airplane contract, Vessel Time charter/Boat Income, Vessel Agency Service - all of which saw their revenue crash in nine months of this year.

AllNews gathered that revenue from Helicopter Charter fell to NGN241.57 million in the nine-month period of 2020, a significant drop when compared to the NGN854.60 million revenue the company generated in the corresponding period of 2019.

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Helicopter maintenance also saw a revenue drop, failing to surpass the NGN8,493 million of last year nine-month period, after recording NGN5.194 million in same period of 2020. The decline continued in contract for Helicopter or Airplane, as the company posted NGN23.23 billion in revenue for nine-month period of 2020, lower than the NGN24.76 billion of same period last year.

Vessel Time charter/Boat Income also nosedived for the period under review, as the earnings report disclosed revenue for this service hit NGN74.50 million in 2020, lower than the NGN74.62 million it generated during the nine-month period of last year. Revenue from Vessel Agency Service also dropped in the nine months of 2020, as Caverton reported NGN74,336 million as revenue, failing to surpass the NGN77.49 million recorded during the same period of 2019.