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COSG 2016 Q1 financial results for the period ended March 31, 2016

Group revenues dropped in the quarter due slower business activities in the oil and gas space; however continued efforts to curb costs and increase efficiency across the group resulted in a 20% drop in directing operating expenses. 

LAGOS, NIGERIA – 29 APRIL 2016 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 unaudited results for the first quarter of 2016.


Group Financial Highlights
• Revenue down 26% to N4.4BN
• Total Operating Costs also down by 25% y-o-y
• Operating Profit at N538MN is 14% lower y-o-y
• Net debt of N11.5BN down 6% from 31st December, 2015
• EPS flat at N0.03


Operational Highlights
• There is reduced demand for offshore support activities in the O & G space but we continue to boost our efforts in diversifying our services to other sectors of the economy
• In line with this, we signed a new 5-year contract in our helicopter operations to manage and operate a fleet of aircraft for the Lagos State Government
• We are also making steady progress with the construction of our new Maintenance, Repair & Overhaul facility (MRO) at our Ikeja base; timeline for delivery of the MRO is still on track for end of 2017
• We maintained our 0.00 Air Accident Rate in the quarter as we continue to enforce our international safety standards

Commenting on the interim results, Mr. Bode Makanjuola, the Group CEO said, “Whilst 2015 was a tough year in the O&G space, we are cautiously optimistic that the persisting oversupply in the industry is not sustainable; our view is that oil prices will stabilize by the second half of the year based on recent trends which will be positive for our operations within that space. Furthermore, we are working tirelessly to broaden our service offerings
through diversification into other sectors, as well as geographically into newer markets in a bid to boost our non – O&G revenues”.
He further stated that “in the quarter, we successfully signed a new 5-year contract for helicopter management services which highlights our ongoing diversification efforts. We are also in the process of concluding terms of a new contract in our helicopter operations which we expect to have a significant impact on the scale of our business. Overall, our strategy is to remain diligent in our operations by offering cost effective offshore support logistics services to a broad range of clients without compromising on our safety standards”.

 


About Caverton
Caverton is one of Nigeria’s leading oil services companies providing solutions for a range of multinational companies across aviation and marine services.
Caverton Marine, one of the fastest growing indigenous shipping companies commenced operations in 1999 while Caverton Helicopters a helicopter charter, sales and maintenance company was established in 2002.
Both companies were consolidated to form Caverton Offshore Support Group on 2nd June 2008. The group’s focus and primary business is 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 client base which includes Shell, Total, ExxonMobil, Folawiyo Aje Services and NNPC among others.