Airlifting service provider to oil and gas industry, Caverton Offshore Support Group, COSG, has released its unaudited financial results for the second quarter ended June 2017.
The report showed that the offshore group had a return to profit with N938 million as against a loss of N2.4 million in Q2 2016.
A statement signed by Amaka Obiora, the Company Secretary revealed that the exchange rate policy introduced by the government was favourable to the company as it was able to help reduce expenses by 61 percent and deliver better results to shareholders.
The results released at the Nigerian Stock Exchange, NSE, on Tuesday, July 25 indicated a revenue of N10.1billion which grew by 11% over N9.1 billion same period in 2016.
The company grew revenue during the quarter as a result of increase in charter flights and vessel agency operations. This in turn affected operating costs that increased by 9% over last year’s result.
“We have been able to contain the administrative expenses during the period by about 61% arising majorly from the impact of the government intervention in stabilising the foreign exchange rate,” the Company secretary said.
As a result, Caverton said its earnings per share increased to 18 kobo from a negative 73 kobo same period last year.
Reacting to the result, the CEO of COSG PLC, Mr Bode Makanjuola said “COSG’s ability to post this impressive result was a result of the shared will and determination of the company’s management with the support of its board of directors to manage our overall expenses while maximising company revenue potentials.
With the revenue increasing by 11% and the profit before tax by 140% over 2016 half year result, we remain determined to ensure optimal use of the business resources.”
Other highlights from the unaudited report include Profitability Ratios which pegs Gross Margin at 35% against 34% in June 2016, EBITDA Margin is 19% compared to -4% last year June while Net Profit Margin is 9% against -26% June 2016
The company’s capital Structure showed that the level of debt being serviced by shareholders funds reduced significantly as Net debt/Equity stood at 0.85x compared to 1.21x in June 2016 while Total Debt/Total capitalization is 0.95 against 1.42 in June 2016)
Asset turnover slightly improved to 24% from 23% in June 2016 confirming the firm’s improved utilization of assets to generate revenue for business operations.
