Caverton reports N1.1billion PBT for 2016 financial year

Caverton Offshore Support Group Plc has announced a profit before tax of N1.1bn, (and an after-tax profit of N612m).

The group’s audited 2016 financial year results show that despite this result, revenue and profit after tax dropped by 17 percent and 38 percent respectively, compared to last year.

Earnings per share also dropped by 38 percent compared to last year.  On the other hand, both the direct operating costs and administrative expenses declined by 20 percent and 37 percent respectively, which highlights its continued effort at streamlining its operations and cost reduction.

Commenting on the year end results, Bode Makanjuola, Caverton’s Chief Executive Officer, said that 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,” Makanjuola said.

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

“The implementation of our strategy to increase service offerings is ongoing as the construction of the Maintenance, Repair and Overhaul facility in Ikeja Lagos is at an advanced stage.  We will also continue to explore other innovative solutions in support of deep and shallow water operations in both marine and aviation business.

“We have continued to ensure that Caverton maintains its position as operator of the largest fleet of AW139 in Nigeria and an authorized Service Centre for Agusta Westland,” Makanjuola added.

The group’s financial highlights show revenue for 2016 at N19.3b, (N23.2b December 2015), operating profit, (excluding other income), is N2.2b, (N2.7b December 2015), EBITDA for the year is N3.7bn, (N5.4bn December 2015). Profit before tax of N1.1b, (N1.77b December 2015), EPS of 18 kobo, (29 kobo December 2015).

The profitability ratios include gross margin of 40 percent (37 percent December 2015), EBITDA Margin of 19% (26% December 2015), Net Profit Margin of 3 percent (4 percent , December 2015), and EBIT/Interest Expense of 1.7x, (1.9x December 2015).

Capital structure ratios include net debt/EBITDA of 3.7x (2.6x December 2015), Net debt/Equity of 1.02x (1.1x December 2015), Total Debt/Total capitalization of 1.5 percent (1.7% December2015), Asset turnover of 47 percent (59 percent December 2015)

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 aircraft operating out of nine locations.

Ifeoma Okeke