Caverton reports 73.9% decline in Profit After Tax to N203m in H1 2022

By Philemon Adedeji

Caverton Offshore Support Group Plc, a provider of marine, aviation, and logistics services to local and international oil and gas companies in Nigeria said it realised a Profit After Tax (PAT) of N203 million in Half year (H1) 2022 from N708 million achieved in half year (H1) 2021, reflecting a decline of 73.9 per cent.

The amount is 22 per cent dip from the N18.07 billion in the same period of last year according to a disclosure signed by the Company Secretary, Amaka Obiora.

The company stated that this is due to tremendous financial and operational headwinds in the first half of the year.

The group revenue moved to N13.96 billion  in H1 2022 from N18.07 billion in H1 2021, reflecting a dip of 22 per cent.

The group reported 44.9 per cent decline in Gross Profit  to N3.51 billion in H1 2022 from N6.37 billion in H1 2021.

Total Operating Profit, (excluding Finance Cost), is N1.38 billion in H1 2022 from N3.24 billion in H1 2021.

EBITDA for the period is N7.06 billion from N9.02 billion in 2021.

Earnings Per Share recorded for the period dipped by 73.9 per cent 6 kobo in H1 2022 from 23 kobo in prior-year 2021.

Gross Margin is 25.14 per cent from 35.25 per cent in 2021.

EBITDA Margin is 51 per cent from 50 per cent in 2021

Net Profit Margin is 1.43 per cent from 4.32 per cent in 2021.

EBIT/Interest Expense is 5.65  per cent from 3.71 per cent in 2021.

Net debt/Equity is 0.89x from 1.28x in 2021.

Net debt/EBITDA is 2.16x from 2.46x in 2021.

Long-Term Debt/Total capitalisation is 0.51x from 0.53x in 2021.

Asset turnover is 0.17x from 0.23x in 2021EBIT/Capital Employed is 4 per cent from 9 per cent in 2021.

Caverton’s Chief Executive Officer,Bode Makanjuola said that the company faced tremendous financial and operational headwinds in the first half of the year which necessitated the need for the management and the board of Caverton to urgently review the company’s management structure and business portfolio as a group.

He said, “We recently announced the appointment of a new Managing Director for Caverton Helicopters, restructured Caverton Offshore Support Group’s executive management and diversified our aviation business from oil and gas aviation logistics to third party training and maintenance, via our recently commissioned Maintenance Repair and Overhaul (MRO) facility and our Caverton Aviation Training Centre (CATC), both in Lagos.

“These announcements have been well received by the wider aviation and oil and gas industry and we are confident this strategy would yield positive financial fortunes for the Group whilst addressing this infrastructure gap in the aviation sector of Nigeria and sub-Saharan Africa.

“Our marine subsidiary, Caverton Marine, has also been repositioned for growth with our foray into local manufacturing of GRP boats. We recently launched our prototype 40-seater GRP ferry at the recently concluded NOG 2022 conference in Abuja, Nigeria and reception has been very positive. The ferry protype was locally built to the highest safety and quality standards under guidance of government and safety agencies and has applications in both oil and gas and commercial mass transit ferry transportation.”