Caverton‘s Revenue Down By 8% To N23.6billion In The 3rd Quarter Of The Year

Caverton‘s Revenue Down By 8% To N23.6billion In The 3rd Quarter Of The Year
LAGOS, NIGERIA – Caverton Offshore Support Group Plc, (COSG), the leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, announces its unaudited first half-year results for 2020. The results show a Profit before tax of N1.5billion, (and an after-tax profit of N1.2billion).

Revenue went down by 8%. In the same vein, direct operating expenses also dropped by 10% supporting the earnings per share which also dropped by 55% when compared to 2019 quarter three results.

Caverton‘s Revenue Down By 8% To N23.6billion In The 3rd Quarter Of The Year

Commenting on the recent events, COSG’s Chief Executive Officer, Mr. Bode Makanjuola stated that

“2020 is definitely a year we would all like to put behind us. While the Covid-19 pandemic and oil price crash continues to have adverse effects on the Nigerian economy, the recent protest has further exposed deep socio-economic problems in the country. Despite these setbacks, we are cautiously optimistic about the future for Caverton as well as Nigeria as a nation.

As a people, we remain resilient in weathering these uncertain times and look forward to finishing the year on a more positive note. As we move into the 4th Quarter of the year we look forward to the completion of our Maintenance Repair and Overhaul Hangar as well as the Caverton Aviation Training Centre which would be the first fully equipped simulator training centre in sub-Saharan Africa. When completed the MRO and CATC would help in reducing capital flight and providing employment for Nigerian pilots and engineers.”

Below are some of the highlights of the unaudited 2020 3rd Quarter results:

Group Financial Highlights:

  • Revenue for 2020 is N23.6b, (N25.8b September 2019)
  • Operating Profit, (excluding other income), is N4b, (N5b September 2019)
  • EBITDA for the period is N8.1b, (N9.5b September 2019).
  • Profit before tax of N1.5b, (N3.9b September 2019)
  • EPS is 35kobo, (77kobo September 2019)

Profitability Ratios

  • Gross Margin of 34% (34% September 2019)
  • EBITDA Margin of 34% (37% September 2019)
  • Net Profit Margin of 5% (10%, September 2019)
  • EBIT/Interest Expense of 1.56x, (3.4x September 2019)

Capital Structure ratios

  • Net debt/EBITDA of 1.63x (2.76x September 2019) Net debt/Equity of 0.61x (1.3x September 2019)
  • Total Debt/Total capitalization of 40% (57% September 2019)
  • Asset turnover of 36% (40% September 2019)

COSG is one of Nigeria’s leading oil services companies providing solutions for a range of multinational companies across aviation and marine services. Caverton Marine Limited, one of the fastest-growing indigenous shipping companies commenced operations in 1999, while Caverton Helicopters Limited is a helicopter charter, sales and Maintenance Company established in 2002. Both companies were consolidated to form Caverton Offshore Support Group on 2nd June 2008.

Caverton‘s Revenue Down By 8% To N23.6billion In The 3rd Quarter Of The Year

The Group’s focus and the primary business are to provide logistics and environmental support services to oil and gas fields with broader plans to support energy operations along the West African shelf as well as other ancillary support services. Caverton has a young and growing fleet of vessels and aircraft operating out of nine locations. The company has an impressive oil and gas client base which include Shell, Total, ExxonMobil, NNPC, Aiteo, Aje-Folawiyo, and Chevron, among others.