COVID-19: Caverton’s revenue drops by five percent

Caverton Offshore Support Group Plc, (COSG), the leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, has announced its unaudited first quarter end results for 2020.

The results show a Profit before tax of N585million, (and an after-tax profit of N427million). According to the report, revenue went down by 5 per cent, while direct operating costs increased by 19 per cent supporting the earnings per share which also dropped by 46 per cent when compared to 2019 quarter one.

Commenting on the recent events, Bode Makanjuola, COSG’s Chief Executive Officer, said, “Coming off the back of a good year end we were looking forward to the next decade with immense optimism. Our Maintenance, repair and Overall (MRO) facility was due for completion and we were to take delivery of the first ever helicopter flight simulator in sub Saharan Africa.

“We also anticipated good fortunes for our marine business, as we had been pre qualified for a number of contracts. Unfortunately the Corona virus pandemic sweeping across the globe has turned 2020 to an annus horribilis which has seen project dates pushed back and potential contraction and indefinite suspension of some contracts.

“As we all come to terms with the unprecedented effects of the pandemic and its negative impact on our economy, financial prudence is our watchword. We are mindful these are extremely challenging times but we remain resolute to maintaining the same level of service our clients are accustomed to whilst preserving shareholder value,” he said.

Group financial highlights include revenue for 2020 is N7.9b, (N8.3b March 2019); Operating Profit, (excluding other income), is N912m, (N1.6bn March 2019);EBITDA for the period is N2.14bn, (N2.16bn March 2019); Profit before tax of N585m, (N1.2bn March 2019) and EPS is 13kobo, (24 kobo March 2019).

The company has profitability ratios of Gross Margin of 28 percent (43percent March 2019); EBITDA Margin of 27 percent (26 percent March 2019); Net Profit Margin of 5percent (10percent, March 2019) and EBIT/Interest Expense of 2.38x, (3.61x March 2019).

Capital Structure ratio as follows: Net debt/EBITDA of 6.52x (7.2x March 2019); Net debt/Equity of 0.64x (0.81x March 2019); Total Debt/Total capitalization of 42percent (51percent March 2019) and Asset turnover of 12percent (14percent March 2019).

Caverton Offshore Support Group Plc, (COSG), the leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, has announced its unaudited first quarter end results for 2020. The results show a Profit before tax of N585million, (and an after-tax profit of N427million).

According to the report, revenue went down by 5 per cent, while direct operating costs increased by 19 per cent supporting the earnings per share which also dropped by 46 per cent when compared to 2019 quarter one.

Commenting on the recent events, COSG’s Chief Executive Officer, Bode Makanjuola said, “Coming off the back of a good year end we were looking forward to the next decade with immense optimism. Our Maintenance, repair and Overall (MRO) facility was due for completion and we were to take delivery of the first ever helicopter flight simulator in sub Saharan Africa. We also anticipated good fortunes for our marine business, as we had been pre qualified for a number of contracts. Unfortunately the Corona virus pandemic sweeping across the globe has turned 2020 to an annus horribilis which has seen project dates pushed back and potential contraction and indefinite suspension of some contracts.

“As we all come to terms with the unprecedented effects of the pandemic and its negative impact on our economy, financial prudence is our watchword. We are mindful these are extremely challenging times but we remain resolute to maintaining the same level of service our clients are accustomed to whilst preserving shareholder value,” he said.

Group financial highlights include revenue for 2020 is N7.9bn, (N8.3b March 2019); Operating Profit, (excluding other income), is N912m, (N1.6bn March 2019);EBITDA for the period is N2.14bn, (N2.16bn March 2019); Profit before tax of N585m, (N1.2bn March 2019) and EPS is 13kobo, (24 kobo March 2019).

The company has profitability ratios of Gross Margin of 28percent (43percent March 2019); EBITDA Margin of 27percent (26percent March 2019); Net Profit Margin of 5percent (10percent, March 2019) and EBIT/Interest Expense of 2.38x, (3.61x March 2019).

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