Due to a challenging business environment, Caverton Offshore Support, which provides aviation, maritime, and logistics services to local and foreign oil and gas firms, saw its earnings after tax drop 5% to N566.1 million.
In the first quarter of 2023, revenue fell 35% to N5.18 billion from N7.98 billion in 2022.
“The period’s financial condition is a representation of management’s numerous measures to ameliorate the effects of the bad results produced in 2022 due to unfortunate occurrences that bedevilled the company in the immediate past year,” Caverton Offshore Support CEO Bode Makanjuola stated.
Caverton’s first-quarter revenue came from helicopter charter (N1.53 billion), helicopter/aeroplane contract (N3.4 billion), vessel time charter/boat income (N223.26 million), and vessel agency service (N26.82 million).
In the first quarter of 2023, operating expenses reduced to N3.02 billion from N5.61 billion in 2022.
Administrative expenses dropped to N936.86 million in the first quarter of 2023, up 14% from N1.09 billion in 2022.
Makanjuola added that actions were taken to turn the company’s fortunes around and boost shareholders’ trust.
Other operating income declined 88.9% to N8,000 in the first quarter of 2023 from N72,000 in 2022.
Caverton’s net finance cost dropped 79.6% to N230.47 million from N1.13 billion.
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Operating cash flow fell to N3.92 billion from N5.36 billion in the previous period.
Net cash flows from investing operations increased 96.5 percent to N18.44 million in the first quarter of 2023 from N522.97 million in 2022.
In the first quarter of 2023, net cash flows from financial activities were N1.88 billion, up from a negative N8.86 billion in 2022.
Makanjuola said the organisation has refocused its efforts on diversifying its aviation and marine business interests while investigating other more profitable investment and business growth areas.
Makanjuola said the company is reconsolidating aviation oil contracts and industry market share to increase revenue and lower operational and finance costs.
Makanjuola noted that Lagos’ Maintenance Repair and Overhaul (MRO) plant and Caverton Aviation Training Centre (CATC) have opened, which could boost the group’s earnings.
Cash and cash equivalents dropped to N1.2 billion in the first quarter of 2023, a 62.5 percent increase from N3.2 billion in 2022.
Caverton’s first-quarter 2023 basic earnings per share were N0.17, down from N0.18 in 2022.
