Caverton Offshore Support, a provider of aviation, marine and logistics services to local and international oil and gas companies have recorded a 5 percent dip in profit after tax to N566.1 million as a result of a challenging business environment.
The firm’s revenue declined by 35 percent to N5.18 billion in the first quarter of 2023 from N7.98 billion in the first quarter of 2022.
“The period’s financial position is a manifestation of the various efforts put in by management to mitigate the effects of the negative results posted in 2022 due to negative occurrences that bedevilled the company in the immediate past year,” Bode Makanjuola, chief executive officer of Caverton Offshore Support said.
Caverton’s first quarter revenue was obtained from helicopter charter which stood at N1.53 billion, helicopter/aeroplane contract (N3.4 billion), vessel time charter/boat income (N223.26 million) and vessel agency service (N26.82 million).
The firm’s operating expenses dropped to N3.02 billion in the first quarter of 2023, a 46.2 percent increase from N5.61 billion in the first quarter of 2022.
Similarly, administrative expenses dipped to N936.86 million in the first quarter of 2023, a 14 percent increase from N1.09 billion in the first quarter of 2022.
“To ensure that Shareholders’ values are not eroded, necessary steps have been taken to turn the fortune of the company around and strengthen shareholders’ confidence in the affairs of the company,” Makanjuola said.
Other operating income dropped 88.9 percent to N8,000 in the first quarter of 2023 from N72,000 in the first quarter of 2022.
Caverton’s net finance cost stood at N230.47 million, a 79.6 percent decline from N1.13 billion in the reviewed period.
Read also: In race against fuel challenges, Schneider Electric canvass adoption of electric vehicles
Net cash flows from operating activities stood at N3.92 billion negative cash flow from N5.36 billion positive cash flow in the comparable period.
Furthermore, net cash flows from investing activities stood at N18.44 million in the first quarter of 2023, a 96.5 percent increase from N522.97 million in the first quarter of 2022.
Net cash flows from financing activities stood at N1.88 billion in the first quarter of 2023 from a negative of N8.86 billion in the first quarter of 2022.
Makanjuola said the group has refocused its efforts on diversifying its business interest within the aviation and marine sectors while exploring other more profitable areas for investments and business development.
“The company is also reconsolidating its aviation oil contracts and industry market share and efforts are underway to boost revenue and reduce our operating and finance costs,” Makanjuola said.
Makanjuola added that the Maintenance Repair and Overhaul (MRO) facility and the Caverton Aviation Training Centre (CATC), both in Lagos, have officially commenced business with prospects to improve the earning capacity of the group.
Cash and cash equivalents dipped to N1.2 billion in the first quarter of 2023, a 62.5 percent increase from N3.2 billion in the first quarter of 2022.
Caverton’s basic earnings per share stood at N0.17 per share in the first quarter of 2023 from N0.18 per share in the first quarter of 2022.