Shareholders of Caverton Offshore Support Group, on Friday presented its audited report for the year ended December 31, 2018, showing among others that profit increased at a faster pace than revenue, following which the directors have proposing a dividend of 25 kobo, far juicier than the previous 15 kobo per share.
The rise in profit was however despite the increased cost of sales, administrative expenses and drop in net foreign exchange differences; just as other income reduced drastically, like finance income, which finance cost ballooned.
According to the result, revenue rose by N11.568bn or 56.42% to N32.109bn from N20.54bn, with helicopter charter being the biggest operating segment, as it fetched N31.957bn; followed by all other segment’s N1.188bn, while marine services contributing N151.918m. Cost of sales was up by N5.788bn, or 43.43% from N13.327bn to N19.116bn, was driven mainly by the N7.308bn crew salaries, which increased from N4.428bn; followed by consumables of N5.83bn (being aircraft spare parts, aviation fuels, freight and courier services protocol and immigrations, among others), up from N3.43bn, and N5.253bn aircraft rental (relating to charges on aircraft hired, airport charges, other incidental cost to the aircraft services and interest on the operating lease of its aircrafts), as against N4.927bn in 2017. Gross profit therefore stood at N12.993bn, improving by N5.78bn or 80.15% from N7.212bn in 2017.
Administrative expenses increased to N5.248bn from N3.957bn; net foreign exchange difference fell to N239.404m from N960.702m; other income dropped by N702.03m or 65.16% to N375.363m, as against the N1.077bn reported in 2017. The 2017 value was driven by the NN472.953m profit on disposal of PPE and N375.086m accrued interest written back, besides the deferred income of N191.521m, which rose to N220.381m last year. This left operating profit at N8.359bn, compared to the previous N5.292bn.
Finance income slowed down to N12m, from N38.052m; while cost climbed to N2.619bn, up from N1.423bn; following which profit before tax for the period increased from N3.907bn to N5.752bn. Income tax expense for the period rose from N1.285bn to N1.455bn; which left net profit at N4.297bn, an increase of N1.675bn or 63.92% from N2.621bn reported in prior full-year. This translated to earnings per share of N1.27, up from 77 kobo in 2017.
The bulk of net profit was the N4.349bn from helicopter charter; followed from afar by the N1.278bn from ‘all other,’ as the marine business sustained a loss of N141.685m. despite a tax rebate of N27.967m.