CAVERTON REPORTS REVENUE OF N5.6BN FOR Q1 2015. OPERATING PROFIT WAS HIGHER AS A RESULT OF IMPROVED OPERATIONAL EFFICIENCY.
LAGOS, NIGERIA – 30 APRIL 2015 – 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 Q1 2015 financial results. The results show revenue of N5.6bn, a 6% increase over Q1 2014. Operating profit also came in 9% higher, highlighting improving operational efficiency.
Commenting on the results, Caverton’s Chief Executive Officer, Mr. Bode Makanjuola said, “Coming on the heels of a challenging business environment in 2014, the year 2015 is off to a slow start as the effect of the devaluation in the Naira and elections dominated the industry during the first quarter. Our net income was largely unchanged over the same period last year mainly due to higher finance cost. We continue to focus on reducing our operational costs to offer cost effective solutions to our clients without compromising safety and improving the efficiency of our operations. Our operating profit was 9% higher compared to same period last year.”
We remain focused on our near term strategic objectives which include:
- Fleet expansion: to support current tenders for marine and aviation services;
- Revenue diversification: gas transportation and pipeline surveillance for the marine business and the development of the aviation training centre (ATC) and Maintenance Repair and Overhaul centre (MRO). Within the aviation industry, our commitment towards developing the industry in Africa is evident in our ongoing investment in our Training centre and MRO facility; this will position us as the one-stop service provider for both commercial and non-commercial aviation activities.
- Exploration of additional high growth markets within the Sub-Sahara region: there is opportunity to leverage capabilities, assets and cross market relationships within the African shelf.
Overall, we are making collaborative efforts across both aviation and marine operations to offer combined logistics solutions to IOC’s and NOC’s to support their operations.
Group Financial Highlights
- Revenue up 6% to N5.9b
- Gross profit – up 7% over Q1 2014
- EBITDA up 23% N1.2b over Q1 2014
- Net Profit up 3% to N108m (Q1 2014: N104m)
- EPS 3kobo (Q1 2014:3k)
Capital Structure ratios
- Interest Coverage Ratio – 1.48x (Q1 2014: 1.87x)
- Net Debt/ Equity – 1.00x (Q1 2014: 1.67x)
- Net Debt/EBITDA – 10.20x (Q1 2014: 19.93x)
- Total Debt/Total Capitalisation – 57% (Q1 2014: 64.5%)
- Total Asset Turnover – 15% (Q1 2014: 13.8%)
- Sixth Annual General Meeting of CAVERTON OFFSHORE SUPPORT GROUP PLC will hold on the 6th of May, 2015. Dividend of 10kobo for every N0.50 ordinary share to be paid to shareholders.
- Caverton Helicopters signed a Helicopter Charter Service Agreement with Nigerian National Petroleum Company (NNPC).This service provision will cover offshore platforms operated by Nigerian Petroleum Development Company (NPDC) as well as all flight requests from other NNPC subsidiaries on a call-off basis.
- COSG migrated its accounting platform to the SAP Enterprise Resource Planning Tool. The new system which was customized to meet accounting and reporting needs is a game changer for Caverton as it enables us to become more efficient and easily compliant with reporting standards.