Caverton Offshore: Operating Expenses Hampers 9-Month Profit Growth

Apparently due to its new contracts and increased operations, Caverton Offshore Plc, on Wednesday presented its unaudited financials indicating a robust 56.12% rise in revenue for the nine-month ended September 30, 2018. The impact of this was however constrained by the rise in various expense heads, such as operating and administrative expenses, as well as finance costs, which why net profit could only climb 35.23% up.
According to the report presented to the Nigerian Stock Exchange (NSE), revenue rose from N14.834bn to N23.16bn, boosted significantly by the N22.541bn earned from helicopter and airplane contract, up from N13.954bn, followed from afar by the N502.711m helicopter charter, which dropped from N613.233m. Operating expenses increased by 51.34% from N9.734bn to N14.731bn; resulting from the jump in aviation fuel and spare parts from N2.417bn in 2017, to N5.198bn; followed by crew salaries of N4.731bn from N3.067bn; and aircraft rentals from N3.727bn to N3.985bn; among others. Operating profit for the period jumped 65.25% from N5.1bn in the corresponding period of 2017, to N8.428bn.
Other operating income dropped to N66.38m from N897.69m, representing a 92.61% decline; administrative expenses rose 33.12% up from N3.051bn to N4.061bn, with depreciation rising from N662.319m to N1.332bn; other expenses and overheads climbed to N1.017bn to N910.338m; and employee benefit expenses from N695.431m to N954.948m. Finance cost, being interest on debts and borrowings, rose to N1.8bn from N1.056bn, representing a 70.52% increased.
Profit before tax increased by 39.22% to N2.632bn from N1.89bn; while net profit stood at N1.613bn, representing 48 kobo Earnings Per Share, from N1.193bn, or 36 kobo each.