Caverton Offshore Q3 Profit Drops To N1.39 Billion

Caverton Offshore Q3 Profit Drops To N1.39 BillionThe unaudited results of Caverton Offshore Support Group Plc (COSG), a leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, for the third quarter, 2015, showed that its profit after tax fell to N1.39 billion down 26% or N1.87 billion recorded in comparable period of September 2014.

Also, profit before tax dipped to N2.25 billion as at the end of September, as against N3.6 billion it realised at the same period last year.

Similarly, the company recorded revenue of N17.8 billion, representing a 5 per cent decrease over the same period last year.

Further analysis of the results showed operating profit (excluding other operating income) of N2.78 billion down 35 per cent or N4.26 billion in September 2014) and earnings per Share of 42 kobo, as against 56 kobo in September 2014.

The company’s profitability rations include earnings before interest, taxes, depreciation and amortisation (EBITDA) margin of 27 per cent as against 30 per cent in September 2014; net profit margin of 8 per cent, (10 per cent September 2014) and EBIT/Interest Expense of 2.73x, (3.50x September 2014).

Commenting on the results, CEO of COSG PLC, Mr. Bode Makanjuola said: “The dip in net profit was due largely to reduction in ad-hoc revenue, increase in equipment lease cost and the effect of foreign exchange loss. We continued with our efficiency measures during the period and achieved some reduction in our overhead cost, however, the impact of the foreign exchange translation loss (year-on-year) muted the effect on our overall performance.”

He added: “In today’s challenging business environment, we are committed and focused on the delivery of efficient aviation and marine logistics services to our esteemed customers. We work to ensure value-add to their business even as they are also impacted by the present economic condition.

“As interest for logistics service support from Nigerian Oil Companies (NOC’s) continues to grow, we are adequately positioned to provide increased coverage for this sector and even for the non oil and gas sectors of the economy.”

Caverton Helicopters signed a two-year contract extension with Shell, held its sixth Annual General Meeting of on May 6, 2015. Dividend of 10kobo for every N0.50 ordinary share was paid to shareholders.

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