Other Ops Income Growth Lifts Caverton Offshore 2019-9m Profit By 60%

Directors of Caverton Offshore Support Group Plc, on Wednesday, submitted its result for the nine-month ended September 30, 2019, to the Nigerian Stock Exchange (NSE), highlight of which was the faster growth in net profit than its revenue in the period. A further probe of the financials showed that the group recorded a robust 714.16% growth in other operating income in the period, as a result of which net profit soared by a significant 59.98%, compared to the 11.29% rise in revenue.
According to details of the score-card, revenue rose by N2.616bn from N23.16bn in the first nine months of 2018 to N25.776bn, with revenue from helicopter and airplane contract remaining its honey-pot, raking in N24.76bn, up from the previous N22.541bn; followed from afar by helicopter charter, N854.608m, compared to the previous N502.711m; while vessel time-charter/boat income stayed flat at N74.625m, compared to the N74.725m of prior nine-month. Income from vessel agency services doubled from N36.078m to N77.492m; just as helicopter maintenance income climbed to N8.493m from N4.673m.
Operating expenses increased to N16.998bn, compared to the previous N15.849bn, driven mainly by the N6.815bn spent on aviation fuel, spare parts and consumables, up from N5.198bn; followed by “right to use others,” which gulped N5.84bn from N4.731bn; just as right to use- aircraft depreciation cost N2.788bn, from N1.118bn. The company did not, however, earn any money from aircraft rentals, and as such did not incur any cost, unlike prior nine-month, when that sub-head gulped N3.985bn; among others. This resulted in an operating profit of N8.777bn, compared to the N7.31bn in the prior nine-month.
Administrative expenses inched to N3.804bn from N2.943bn, principally the N1.742bn employee benefits expense, which increased from N954.948m; followed by management expenses, which rose from N280.065m to N441.38m; just as other expenses and overheads dropped from N1.017bn to N910.009m. Other operating expenses rose by N474.064m from N66.381m to N540.445m in the review period. It was boosted by grant income of N137.502m, up from N36.367m; and what the company tagged “others,” which contributed N371.008m, as against the previous N6.526m
These swelled total operating profit by N1.079bn, or 24.34% from N4.433bn in the corresponding period of 2018, to N5.512bn.
Finance cost, being interest on debts and borrowings, dropped marginally from N1.8bn to N1.619bn; following which profit before tax stood at N3.893bn, as against the previous N2.632bn. The tax expense for the period rose by N292.77m or 28.74% from N1.018bn to N1.311bn. Net profit for the period, therefore, stood at N2.581bn, up by 59.98% from N1.613bn in 2018; translating to earnings per share of 77 kobo, as against the previous 48 kobo each.