Caverton Offshore Support Group Plc is a leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria.
The Half Year report for the period ended 30 June 2021 shows year on year growth in the company’s top line and bottom line figures.
A turnover of N18.069 billion was reported for the six months period, up by 12.38% from N16.079 billion reported the previous year.
Profit after tax grew by 1.83% year on year to N780 million from N766 million reported in HY 2020. Earnings per share for the six months period was 23 kobo, same as what was reported the previous year. At the share price of N1.78, the P.E ratio of Caverton stands at 7.65x with earnings yield of 13.08%.
The result came even in the face of the serious negative impact that the Covid-19 pandemic continues to have on business operations in Nigeria and the rest of the world, which has caused significant reduction in activities by International and Local Oil and Gas companies who are the major clients of Caverton.
Commenting on the results, Caverton’s Chief Executive Officer, Mr. Bode Makanjuola, said that “the result shows our continued determination to re-focus our operations in the face of the challenging economic conditions, to ensure continued business survival and profitability. To boost revenue, the marine service sector of the Group, has also been restrategizing to position the company towards exploring further opportunities within and outside the oil and gas sector”.
He further stated that “our Maintenance Repair and Overhaul (MRO) facility and our Simulator Training facility, both in Lagos, have officially commenced business operations in the 2nd half of 2021. This heralds a new age in the Nigerian aviation sector and better fortune for the Group. As expected with new projects, the income stream from these two new projects will gradually grow over the years ahead”
Profitability Ratios
- Gross Margin is 35.25% (34.95% in 2020)
- EBITDA Margin is 21% (23% in 2020)
- Net Profit Margin is 4.32% (4.76% in 2020)
- EBIT/Interest Expense is 1.58 %, (2.03 % in 2020)
Capital Structure ratios
- Net debt/Equity is 1x (1.04x in 2020)
- Net debt/EBITDA is 5.85x (6.12x in 2020)
- Long-Term Debt/Total capitalization is 0.59x (0.42x in 2020)
- Asset turnover is 0.23x (0.24x in 2020)
- EBIT/Capital Employed is 12 (15 in 2020)
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 2 ndJune 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 aircrafts operating out of nine locations. The company has an impressive oil and gas client base which include Shell, Total, ExxonMobil, NNPC and Chevron among others.