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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.