Caverton Offshore Support Group, the first fully integrated offshore support company in Sub-Saharan Africa, has reported its first loss in eight years due to rising operating costs.
According to the financial statement published on the Nigerian Exchange Group, the firm reported an after-tax loss of N3.7 billion in the first half (Q1) of 2024 from an after-tax profit of N258.6 million in the same period of last year.
The firm’s operating cost rose to N15.9 billion from N8.7 billion and net finance cost increased to N4.81 billion from N763.2 million.
Read also: Caverton Offshore appoints Adedeji Adeola as new CFO
Operating in a challenging business environment, the offshore support company is grappling with escalating aviation fuel, spare parts, consumables and salaries expenses as the cost of doing business rises.
A further breakdown of the company statement disclosed that administrative expenses also grew to N4.94 billion from N3.16 billion.
The group is principally engaged in the provision of offshore services to the oil and gas industry, harbour and general marine operations; and the provision of charter, shuttle and maintenance services of helicopters and aeroplanes to third parties.
Similarly, net exchange difference rose to N3.1 billion from a loss of N364 million, and its operating profit also rose to N1.1 billion, compared to N1 billion.
The company’s financial statement disclosed that its revenue from contracts with customers rose to N18 billion from N13 billion during the period.
A breakdown of the revenue segment includes Helicopter Charter which rose to N6.1 billion from N1.5 billion; Helicopter maintenance amounting to N1.06 billion, a 61 percent fall from N2.69 billion; Helicopter/ Airplane contracts rising to N10.5 billion from N8.7 billion; Vessel Time charter/Boat Income amounting to N931 million from N 223 million and Vessel Agency Service amounting to N90 million from N83 million.
Read also: Caverton’s liquidity grows more than 15-fold despite widened after-tax loss
During the period surveyed, Caverton Offshore reported a negative working capital management as the balance in its current liabilities exceeds its balance in its current liabilities.
Total Equity reported a negative balance of N4.45 billion during the first half compared to a positive N12.4 billion recorded in the same period of 2023.
Total liabilities rose to N70.4 billion from N57 billion while its total assets fell to N65.9 billion from N69.4 billion.
Net cash from operating activities demonstrated an increase to N12.3 billion, compared to a negative N3.9 billion, primarily driven by an upsurge in trade and other receivables.
In the reviewed period, Net cash from investing activities reported a negative balance amounting to N86 million, a turnaround from a positive balance amounting to N552 million recorded.
On the other hand, Net cash from financing activities reported an increase of N2.5 billion from N1.5 billion. The closing balance of Cash and cash equivalents at the end of the period amounted to N13.4 billion H1, from a loss of N1.3 billion in the corresponding period of 2023.
The firm recorded a loss per share of N1.11 per share from N0.08 per share.
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