The management of Caverton Offshore Support Group Plc, last week presented its half-year report for the period ended June 30, 2018, indicating among others, a faster profit growth than revenue, despite the rise in operating costs, resulting in a possible increase in dividend, if the company sustains its growth.
The continued growth in top and bottom-lines is coming after almost a year since the company announced an August 2017 five-year contract between its subsidiary- Caverton Helicopters and the NNPC/Chevron Joint Venture to provide aviation services to Chevron Project based in Escravos, Delta State.
The result shows that revenue swelled by 40.64% from N10.112bn to N14.222bn, which expectedly, confirmed the contribution of the Chevron deal, with the helicopter/airplane contract contributing N13.827bn. This represented a juicy, but seemingly unhealthy 97.22% of income; followed from a long-distant with N310.922m, or 2.24% of total, helicopter charter, compared with N570.896m in the corresponding period of 2017. Vessel time charter earned N49.85m, a decline also from N56.766m; while the biggest decline was recorded in vessel agency service, which could only contribute N28.852m, deep cut, when compared to N99.801m in 2017.
Operating expense climbed 33.23% to N8.81bn, as against the N6.612bn reported in the prior half-year. Operating profit therefore stood at N5.411bn from N3.399bn, representing a 54.62%, with aviation fuel and spare parts gulping N3.039bn, rising by N1.403bn or 85.9% from N1.634bn in the prior Q2; this was followed by a less dramatic rise in crew salaries from the previous N2.139bn to N2.698bn; just as the N2.587bn cost of aircraft rentals, from N2.476bn; among others.
Other operating income dropped by a significant 65.04% at N52.554m, compared to the previous N150.308mn, without an exchange gain unlike in the past half year, while grant income fell to N24.872m from N117.247m. Interest income rose marginally from N9.911m to N10.347m; followed by the rise in “others” from N9.471m to N17.335m.
Administrative expenses also increased by 35.15% to N2.639bn from N1.953bn. Finance cost jumped to N1.267bn, 67.05% higher than the N759.04m reported in the preceding half year, being interest on debts and borrowings
Profit before tax rose by 65.95% to N1.556bn from N983.03m; even as tax expense jumped to N594.187m, a rise by N250.745m or 73%; leaving a net profit growth of 61.87% from N594.58m to N962.45m, which translated to earnings per share of 29 kobo; up from 18 kobo.