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Investors shrug off risks to Caverton earnings despite air mishap

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Equity investors in Caverton Offshore Support Group Plc (Caverton) waved off any form of possible risks to the Group’s earnings as they chose to hold onto the shares on Monday, February 4, 2019, on the Nigerian Stock Exchange (NSE) where the company is listed.

Their ‘hold’ decision came despite last weekend’s incident in which a Caverton helicopter carrying Vice President Yemi Osinbajo to a campaign rally of the All Progressives Congress (APC) crash-landed in Kabba, Kogi State.

Caverton Helicopters is a subsidiary of Caverton Offshore Support Group Plc, a company listed on the NSE.

The share price of Caverton remained unchanged at N2.20 kobo at the end of trading on the NSE, an indication of investors’ continuing interest in the company. With a year-to-date (YTD) increase of 14.6 percent, Caverton stocks have outperformed the NSE All Share Index (ASI), which has fallen by 2.18 percent this year.

The Caverton Helicopter skidded during landing, with all 12 people aboard the chopper safe. The incident was blamed on unusual weather. The Accident Investigation Bureau (AIB) has launched an investigation into the accident.

Meanwhile, Caverton Group, while restating its commitment to Osinbajo’s safety, said in a tweet the vice president has received a new chopper from Caverton Helicopters.

“A true statement of our commitment to safety and professionalism. Vice President Professor Yemi Osinbajo continues his campaign flying with Caverton,” the tweet read.

Caverton is listed on the support and logistics subsector of the NSE services sector. The company has N7.371 billion in market capitalisation and shares outstanding of 3,350,509,750 units. In the financial year ended December 31, the company paid a final dividend of 15 kobo per share to its shareholders.

Incorporated in Nigeria as a private limited liability company on June 2, 2008, Caverton Offshore Support Group Plc became a public limited liability company on July 4, 2008. The principal activity of the Group is the provision of offshore services to the oil and gas industry. It commenced business on July 1, 2008. The interests of the directors are stated in the Memorandum and Articles of Association of the company.

The issued and fully-paid share capital of the Group as at December 31, 2017 shows that 64 corporates own 2,362,835,245 units of Caverton Offshore Support Group shares representing 70.52 percent of the company’s entire equity holdings. Eight foreigners hold 5,070,000 units or 0.15 percent, and nine directors hold 657,720,462 units or 19.63 percent.

There are 1,628 individual shareholders in the company accounting for 264,219,840 units or 7.89 percent of the entire holdings. Five trust and pension funds hold 56,248,600 units or 1.68 percent, two foundation and schools hold 200,000 units or 0.01 percent, while six nominees hold 3,372,703 units or 0.10 percent of Caverton entire equity holdings.

There are four associations that hold 622,100 units or 0.02 percent of the company’s equities, while five enterprises bought 117,100 units of Caverton shares outstanding.
Also as at December 31, 2017 the directors of the company and their equity holdings in the shares are Aderemi Makanjuola (500.71 million units), Bashir Bakare (20 million units), Sola Falola (20 million units), Olabode Makanjuola (50.005 million units), King Edmund Daukoru (15 million units), Bello Gwandu (10 million units), Akin Kekere-Ekun (30 million units), Titilola Adigun (10.005 million units), and Josiah Choms (2 million units).

In the nine months to September 30, Carverton Group earned revenue of N23.16 billion, a 56.17 percent increase from the N14.83 billion it made in the same period of 2017.
Carverton made N502.711 million from helicopter charter in the review 9M’2018 period, which represents 18.02 percent decline when compared to the N613.233 million in 9M’2017. The airline raked in N22.54 billion in 9M’18 from helicopter/airplane contract, an increase of about 61.57 percent from the N13.95 billion in 9M’ 2017.

The company’s operating profit at N8.42 billion was higher by 65 percent in the nine months to September 30, 2018, as against N5.10 billion in the corresponding period of 2017.
Profit Before Income Tax expense increased by 39.2 percent to N2.63 billion, from N1.89billion, while earnings per share rose to 48 kobo, from 36 kobo in 9M’17.


Iheanyi Nwachukwu

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