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COSG 1H 2014 Results - Press Release

Financial results for the period ended June 30, 2014

CAVERTON REPORTS 21% INCREASE IN REVENUE COMBINED WITH IMPROVING OPERATING PERFORMANCE FOR THE FIRST HALF ENDED 30 JUNE 2014 TO N12.5 Billion 

LAGOS, NIGERIA –  12 AUG 2014 – 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 today announces its unaudited 2014 half year results.

Commenting on the half year 2014 results, CEO of COSG PLC, Mr Bode Makanjuola said,

We are pleased to report a steady progress in the first half of the year as revenue grew 21% year on year driven by growing demand for helicopter charters that complemented our recurring revenues from fixed contracts. In addition we delivered improved operating performance as our operating and administrative costs fell from 79% of revenue excluding other operating income to 75%. Overall, the outlook remains positive and we expect to meet our growth targets for the full year”.

Our strategic plans remain on course. The recent addition of our 7th AW 139 helicopter illustrates our delivery on our fleet expansion strategy. This serves as a boost to our aviation business and positions us on track to service our growing portfolio of contract tenders. Most pleasing is the recent award of a 2 year contract extension with TOTAL which gives us confidence in our capabilities for increased activities in the oil and gas sector.

We are also making progress on plans to diversify our income base. In partnership with CAE, we have embarked on building the first aviation training centre and aviation maintenance, repair and overhaul services in Nigeria which we plan to launch in 2015. Furthermore, we shall continue to explore our options for opportunities to increase our market penetration in other sub-Saharan African countries.

We are confident that our cost control measures combined with the roll out of our strategic growth plan positions us to improve profitability thereby adding significant value to the Group and for our shareholders.

 

Group Financial highlights

  • Revenue of N12.51bn up 21%, (N10.32bn June 2013)
  • Operating Profit excluding other operating income of N3.18bn up 49%, (N2.13bn June 2013) [1]
  • Profit before tax of N2.60bn down 32%, (N3.82bn June 2013)
  • Profit after tax of N1.59bn down 12%, (N1.79bn June 2013)
  • EPS of 0.47kobo (0.54 kobo June 2013)

 

Profitability Ratios

  • EBITDA Margin of 33% (47% June 2013)
  • Net Profit Margin of 13% (17% June 2013)
  • EBITDA/Interest Expense of 6.89x (11.71x June 2013)

 

Capital Structure Ratios

  • Net Debt/EBITDA of 4.53x (3.05x June 2013)
  • Net Debt/Equity of 1.48x (1.28x June 2013)
  • Net Debt/Operating Profit of 5.82x (3.51x June 2013)
  • Net Debt/Total Capitalisation of 58% (54% June 2013)
  • Total Debt/Total Capitalisation of 61% (58% June 2013)

 

Operational Highlights

Successfully listed 3.35 billion shares on the Nigerian Stock Exchange by way of Introduction, the first indigenous oil services operator in the sector.

Contract signed with CAE, a global leader in the provision of flight simulators to operate the first commercial aviation training centre in the sub-Saharan African region.

Won 2 year contract extension from TOTAL to further service the company into 2016.

Addition of brand new AW139 Helicopter to Caverton Helicopter’s growing fleet making it the largest fleet in sub-Saharan Africa.

 

Outlook – Full Year 2014 

 

We maintain our market guidance on EBITDA between 30 – 35% of revenue and Y-o-Y average revenue growth of 15%. We do not expect any major increase in operating expenditure and therefore maintain that our net profit margin should mirror the half year position.



[1] In 2013 the group recorded an extraordinary accrued loan interest write-back of N1.68bn under Other Operating Income.

 

COSG FY 2014 End Year Results - Press Release

Financial results for the period ended December 31, 2014

CAVERTON REPORTS 33% INCREASE IN REVENUE FOR FY2014 TO N24B WITH IMPROVED OPERATING MARGIN. NET INCOME IMPACTED BY FOREIGN EXCHANGE LOSS.  

LAGOS, NIGERIA –  27 MARCH   2014 – Caverton Offshore Support Group Plc (Bloomberg: Caverton NL) the leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria today announces its audited 2014 FY results. The result show a 33% increase in revenue to N24B over last year with improved operating performance. Net income however was impacted as a result of the weak Naira due to the devaluation.

 Commenting on the year end results, Caverton’s Chief Executive Officer, Mr. Bode Makanjuola said, “The year has been of a mixed fortune! Whilst steady implementation of our strategic plans translated to strong top-line growth - with group revenue soaring 33% year-on-year to N24Billion-, an exchange translation loss of N2Billion resulting from the official devaluation of the Naira resulted in a drop in net income.”

He further stated that “In the current challenging business environment, we continue   to focus on reducing cost and increasing efficiency for all sectors of our business in 2015.   Our drive to diversify and grow our revenue base is on track with the planned development of our aviation training centre; and maintenance, repair and overhaul facility. In addition to our existing contracts, for FY 2014, we witnessed increased activity in the helicopter charter segment which resulted in increased revenue for the end year. We signed new agreements to provide aviation and marine logistics services to indigenous oil and gas companies as we continue to take full advantage of the opportunities offered by NOC’s as more multinationals unbundle and divest assets to Nigerian Oil Companies.”

 

Group Financial Highlights

  • Revenue up 33%  to N24.9b
  • Gross profit – up 47% over last year  
  • Exchange translation loss  - N2b
  • Net Profit down 48%  to N979m ( N1.87b FY 2013)
  • EPS  29kobo ( 55k FY 2013)

 

Capital Structure ratios

  • Interest Coverage Ratio -  2.75x (1.39x FY2013)
  • Net Debt/ Equity 1.18x (1.63x  FY 2013)
  • Net Debt/EBITDA 2.31x (3.11x  FY2013)
  • Net Debt/Operating Profit  3.45x (4.21  FY 2013)
  • Total Debt/Total Capitalisation  58%  (64%  FY 2013)

 

Operational Highlights

  • Growth in group revenue was driven by increased activity in helicopter charter segment – segment revenue up from N267.6million in FY 2013 to N4.6Billion in FY 2014.
  • Gross margins improved to 44% in 2014 as the group pressed on with cost cutting initiatives which led to efficiency gains.
  • Petroleum Technology Development Fund (PTDF) and Caverton signed MoU - a cooperative agreement to train pilots sponsored and trained by the fund. Caverton will employ the pilots on successful completion of the training having gained type rating and flying hours
  • Contract signed with CAE, a global leader in the provision of flight simulators to operate the first commercial aviation training centre in the sub-Saharan African region.
  • AW139 Type Rating Course held for 13 Caverton engineers and two NCAA Inspectors. Course was delivered at Caverton facilities here in Nigeria by renowned training providers REH Aviation   LTD UK.
  • Caverton-RK awarded a contract to supply two drilling vessels to Shebah Exploration and Production Company Limited (SEPCOL).
  • Caverton Marine Ltd –a subsidiary of Caverton Offshore Support Group PLC- received an AA categorization from NCDMB showing full compliance with Local Content Act as it pertains to Company and Asset ownership.

Caverton Brings Hope to Persons with Sickle Cell Disorder

LAGOS, NIGERIA – MAY 2015 – In furtherance of our Corporate Social Responsibility ideals, Caverton Offshore Support Group Plc -COSG (Bloomberg: Caverton NL) the leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria is happy to partner with the Sickle Cell Foundation Nigeria (SCFN) to help persons with sickle cell disorder (SCD) lead normal lives.

 
L-R Mr. Ebenezer Adeleye-Program Coordinator Sickle Cell Foundation Nigeria, Mrs Titi Adigun-Deputy CFO COSG, Prof Olu Akinyanju,OON Chairman Sickle Cell Foundation Nigeria accepting the cheque from Mr. Bode Makanjuola-CEO COSG and Ms. Joy Okebalama-GM COSG

 Mr. Bode Makanjuola CEO of Caverton Offshore Support Group recently presented a N10m donation to the Foundation to pay for joint replacement surgery for persons with avascular necrosis of the hip and shoulder joints.  The donation was received by the Founder and Chairman of SCFN, Professor Olu Akinyanju, OON. The SCFN was established in 1994 for the purpose of driving sickle cell research, providing appropriate care for affected persons, educating on proper management of the disorder and to drive the establishment of State Sickle Cell Centres across the country (www.sicklecellfoundation.com).

SCD is a genetic disorder that is a life-long condition which is curable only by stem cell transplantation.  With appropriate management, persons affected by SCD can lead better quality lives. In Nigeria, 1 in 4 persons carries the sickle cell trait (HbAS) and over 150,000 babies are born each year with sickle cell anaemia (HbSS). Most of these children die in infancy due to lack of care, ignorance and misinformation.  With education and care, the lives of the babies can be improved and much prolonged into adulthood.

Avascular necrosis (AVN) occurs when the bone at the head of the femur withers off and can no longer fit properly into the hip joint leading to pain and difficulty in walking and moving around. Patients with this condition most times are unable to live a normal life of going to school, to work, etc. The replacement surgery is expensive ranging from N2m in Nigeria to N7.5m when performed in South Africa and India. Thankfully, the surgery can be performed at the National Orthopedic Hospital in Igbobi, etc. Speaking at the presentation ceremony, Mr. Bode Makanjuola thanked the Professor for the good work he is doing at the Foundation. “He is a great doctor of our generation and hopefully our small token will bring succour to the patients. In his response, Professor Akinyanju stated “we are happy and very grateful that COSG decided to help about 5 patients who require the surgery. I have known the COSG founders for many years and I’m happy to have them support our joint replacement initiative.” Caverton had also made a donation of N5m in 2011 towards the installation of solar powered lights at the National Sickle Cell Centre to address the challenges with burglary due to lack of proper lighting at night.

The Foundation, which is a non-profit organization, is calling for support from individuals and corporate bodies. In 2008, the United Nations declared June 19 to be observed every year as the World Sickle Cell Day (WSCD) in order to raise worldwide awareness and support for SCD. Activities lined up in Lagos for this year’s commemoration of the WSCD include, a Media Workshop on Sickle Cell Reporting and Advocacy on Thursday June 11; Community Awareness Program in Epe LGA with free haemoglobin genotype tests for about 500 people on Saturday June 13; a Schools Quiz Program for Secondary School Students on Tuesday June 16; a Symposium where experts will discuss SCD and draw attention to sickle cell programs and services in Nigeria on the WSCD, Friday June 19 at the National Sickle Cell Centre; and a Public Information and Education Session in collaboration with the Health Services Commission of the Lagos State Government at the Yoruba Tennis Club, Onikan, on Wednesday June 24. The theme for the World Sickle Cell Day this year is ‘SCD: Life Saving Measures.’

Caverton Supports Tertiary Education In Nigeria; Commisions A 500-Seater Lecture Hall

Chairman COSG PLC Mr. Aderemi Makanjuola Cuts the tape to commission the building.jpgPlaque engraved on the 500-seater Lecture Hall.jpgFront view of 500-seater capacity Lecture Hall donated by caverton to the university.jpgInside view of the 500-seater lecture hall.jpg

LAGOS, NIGERIA 23 JUNE 2014 – Caverton Offshore Support Group PLC (“CAVERTON”,  ISIN Code: NGCAVERTON07) is pleased to announce the commissioning of a 500-seater lecture hall ‘CAVERTON HALL’ at the Federal University of Technology, Minna, Niger State.

The commissioning ceremony which was attended by dignitaries from the State, the University and the Caverton Board of Directors has been lauded as a step in the right direction to assist in improving the quality of tertiary education in the country. Speaking at the occasion, the Group Chairman of Caverton, Aderemi Makanjuola stated that ‘This is in furtherance of our Corporate Social Responsibility ideals, and we are mindful to leave our footprint on the sands of time’. The construction  commenced in 2010 and was completed in 2013.

The Group Chairman also announced during the commissioning that Caverton plans to deepen the collaboration with the Federal University of Technology, Minna by offering Internship (IT) positions to students of the institution.  He further stated that Engineering students from the University who finish at the top of their class graduating with First and Second class upper degrees are encouraged to seek employment with Caverton.

Caverton continues to demonstrate commitment to Nigerian Government’s ‘Local Content Policy’, and the company has trained well over 40 local pilots and engineers from the ab-initio atage in the last 3 years. Caverton has made major donations towards numerous initiatives including Standard Chartered’s ‘Seeing is Believing’ project aimed at combating blindness; AMFAR (American Foundation for AIDS Research) aimed at AIDS prevention, treatment and research; Nigeria Association of Master Mariners towards the construction of the Association’s permanent site; to name a few.

It will be recalled that Caverton Offshore Support Group recently listed on the Nigerian Stock Exchange (NSE), the first oil and gas Service Company to go public in Nigeria. This new development shows a diversification in Caverton’s business portfolio and income base.

Chairman’s speech at the commissioning ceremony

News Update

22-08-2017

CAVERTON Expands Existing Bell Helicopter Fleet with Eight 407GXPs

Interview with MD Caverton Helicopters PART 1 Watch here 
22-08-2017
Interview with MD Caverton Helicopters PART 2 Watch here 
 
21-08-2017

CAVERTON SECURES 5-YEAR LOGISTICS CONTRACT WITH CHEVRON

CAVERTON Offshore Support Group Plc has secured a five year logistics support contract from Chevron Nigeria Limited, the operator of NNPC/CNL Joint Venture, for the provision of aviation services Read more 
 
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