Caverton explains dip in net profit

Caverton Offshore Support Group PLC (COSG) has expressed commitment to quality services despite drop in financial results.

COSG, a leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, has released its unaudited Q3 2015 results showing revenue of N17.8 billion which represented a 5 percent decrease over the same period last year.

Earnings per Share came in at 42 kobo, already trending higher than FY 2014 (29 kobo).

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.”

Makanjuola further stated that, “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.”

Group financial highlights include: Revenue of N17.8b down by 5 per cent, (N18.7b September 2014); Operating Profit (excluding other operating income) of N2.78b down 35 per cent (N4.26b September 2014); Profit before tax of N2.25b down 26 per cent, (N3.6b September 2014).

Profit after tax of N1.39b down 26 per cent, (N1.87b September 2014) and EPS of 42 kobo (56 kobo September 2014).

Profitability ratios are: EBITDA Margin of 27 per cent, (30 per cent 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).