CAVERTON OFFSHORE SUPPORT GROUP PLC
Audited Financial Results for the Period Ended 31 December 2022
CAVERTON MAKES A LOSS-AFTER-TAX OF N5.16BILLION FOR THE PERIOD JANUARY TO DECEMBER 2022
LAGOS, NIGERIA – 12 MAY 2023 – 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, announced its audited results for the year ended 31st December 2022 on 9 May 2023. The results show a Loss- After-Tax of N5.16 billion.
Commenting on the results, Caverton’s Chief Executive Oﬃcer, Mr. Bode Makanjuola, said “coming oﬀ the back of a diﬃcult 2022 for the company this loss was anticipated and the Group’s management have already been taking the necessary steps to mitigate the negative impact across the Group to ensure shareholder value is not eroded. Whilst oﬀshore helicopter logistics has accounted for a substantial amount of the company’s revenue over the past decade, the Group has refocused its eﬀorts on diversifying its business interest within the aviation and marine sectors while exploring other more proﬁtable areas for investments and business development. While reconsolidating on our aviation oil contracts and industry market share, eﬀorts are underway to boost revenue and reduce our operating and ﬁnance costs”.
He stated that “our Maintenance Repair and Overhaul (MRO) facility and the Caverton Aviation Training Centre (CATC), both in Lagos, have oﬃcially commenced business with prospects to improve the earning capacity of the Group. We have already commenced third party maintenance of helicopter aircraft in Nigeria and given our Free Trade Zone status we are also attractive to operators and aircraft owners in neighboring West African countries who have also had to endure the arduous task of sending aircraft and engines to Europe for heavy maintenance. We are conﬁdent that the level of patronage we have witnessed over the 1st quarter of the year will herald improved revenues for 2023. Furthermore, coming oﬀ the successful reception of our AW139 ﬂight training simulator, a second Simulator for the smaller AW 109 helicopter is due to arrive in the second quarter of 2023”. This according to him will further boost the revenue generating potential of our Training Centre.
On the marine front, Caverton Marine Limited has been at the forefront of promoting and supporting improved water transportation. As a result of the growing interest in waterways transportation, the quality and safety of water ferries has been a major talking point amongst both regulators, passengers and operators. Caverton recently invested in a boatyard where the company is currently building GRP passenger ferries and security boats to promote and encourage safe water transportation. These marine vessels are being built to the highest safety and quality standards under international marine vessel classiﬁcation agency guidelines. Marine vessels are classiﬁed according to the soundness of their structure and design and classiﬁcation agency guidelines are there to ensure the vessels meet an acceptable standard of stability, safety and environmental impact acceptability.
With our ever-increasing population, demand for marine transportation as an alternative to our congested roads is rapidly growing. There is therefore a need for high-quality vessels that can meet the demands of both local and international markets. the CEO stated that “Our boatyard and jetty will provide a hub for the construction and maintenance of marine vessels, creating jobs and contributing to the development of the Nigerian maritime industry. Our team has signiﬁcant experience in boat building and we are conﬁdent that we can deliver top- quality vessels that meet international standards. We presently use modern technology and equipment to ensure that our boats are not only durable and eﬃcient but also environmentally friendly”.
Below are some of the highlights of the 2022 audited Results:
Group Financial Highlights:
- Revenue is N29.23B (N34.76b in 2021)
- Gross Proﬁt N3.69B (N8.2B in 2021)
- Total Operating Proﬁt, (excluding Finance Cost), is N527M, (N26.31B in 2021)
- Proﬁt/(Loss)-Before-Tax is (N5.08B), (N5.6B in 2021)
- Proﬁt/(Loss)-After-Tax is (N5.16B), (N4.32B in 2021)
- EPS is (1.53) kobo, ((1.28) kobo in 2021)
- Gross Margin is 12.60% (23.69% in 2021)
- Net Loss Margin is (17.39)% (16.11% in 2021)
- EBIT/Interest Expense is 6 %, (4 % in 2021)
Capital Structure ratios
- Net debt/Equity is 1.67x (1.22x in 2021)
- Long-Term Debt/Total capitalization is 1.71x (1.1x in 2021)
- Asset turnover is 0.39x (0.43x in 2021)
- EBIT/Capital Employed is 0.01% (0.01% in 2021)
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 2ndJune 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 aircrafts operating out of nine locations. The company has an impressive oil and gas client base which include Shell, Total, ExxonMobil, NNPC, Aiteo, among others.
For more information, visit the company’s website at www.caverton-oﬀshore.com