Caverton top line figure declined slightly on slide in oil prices

Caverton Offshore Support Group Plc, one of the leading providers of marine, aviation and logistics services to local and international oil and gas companies in Nigeria has recorded a 7% drop in revenue while profits remained flat compared to last year. 

Administrative expenses however declined by 16% which highlights the company’s continued effort at streamlining its operations. Earnings per share retained last year level at 29 kobo.

For the group’s financial highlight released at the Nigerian Stock Exchange showed revenue of N23.2b down by 7%, (N24.9b December 2014), operating profit (excluding other income) of N2.5b down 32%, (N3.7b December 2014), EBITDA also down by 10% year – on –  year to N5.4bn in FY 2015, profit before tax of N1.7b down 35%, (N2.7b December 2014) and EPS is 29 kobo (29 kobo December 2014). The company’s profitability ratios were EBITDA margin of 26% (27% December 2014), net profit margin of 4% , same as previous year and EBIT/Interest Expense of 1.9x, (3.0x December 2014)

For its Capital Structure ratios, the company saw a net debt/EBITDA of 1.8x (1.7x December 2014), net debt/Equity of 0.8x (0.8x December 2014), total debt/total capitalization of 50% (51% December2014) and asset turnover of 59% (68% December 2014).

Commenting on the year end results, Bode Makanjuola, Caverton’s Chief Executive Officer, said, “The slide in oil prices with the resultant reduction of activities by international and local oil and gas companies continue to impact the service sector of the industry. Whilst we had new support contracts signed during the year, we have had reduction in the work scope and rate of existing contracts.”

He further stated that “part of our strategy to weather the current challenging business environment is to continue to focus on cost efficiency without compromising on our safety standards.

The implementation of our strategy to increase service offerings is ongoing as we have commenced construction of the maintenance, repair and overhaul facility in Ikeja Lagos.  We will also continue to explore other innovative solutions in support of deep and shallow water operations in both marine and aviation business.”

Makanjuola noted that Caverton so far has the largest fleet of AW139 in Nigeria and is an authorized Service Centre for Agusta Westland.

During the year 2015, Caverton Helicopters signed a two year contract extension with Shell and held its sixth Annual General Meeting of Caverton Offshore Support Group Plc on the 6th of May, 2015. Dividend of 10kobo for every N0.50 ordinary share was paid to shareholders.

Josiah Choms managing director, Caverton Helicopters was elected to the Board of HeliOffshore, Josiah Choms managing director Caverton Helicopters Ltd and Titilola Adigun, Group chief financial officer were appointed as board members of the board of directors for the group.

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. Focused

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 the company become more efficient and easily compliant with reporting standards.

The company has also commenced construction of Maintenance Repair and Overhaul (MRO) facility.al safety.

 Ifeoma Okeke