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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.