Caverton Returns To Profitability, Posts N2.09bn Pre-tax Profit

Caverton Offshore Support Group Plc has reported a financial turnaround in the first half of 2025, marking a return to profitability. The group posted a pre-tax profit of N2.09 billion, reversing a loss of N3.7 billion in the same period last year.

The company’s unaudited financial results announced on the Nigerian Exchange on Thursday showed that despite a slight decline in revenue to N16.1 billion from N18.8 billion in H1 2024, Caverton demonstrated improved operational efficiency and cost management, reflected in a gross profit of N9.0 billion—a sharp increase from N2.9 billion previously.

The result also showed that total operating profit, excluding finance costs, surged to N11.7 billion compared with just N1.1 billion in the previous period.

Caverton is actively repositioning its marine and aviation divisions to align with its strategic growth agenda.

The group noted that it entered a groundbreaking strategic partnership with Chinese electric marine engine manufacturer Explomar. This collaboration aims to develop Nigeria’s first all-electric OMIBUS ferry, pioneering sustainable marine transportation in the region. Additionally, Caverton is advancing several other innovative boat-building and design projects, leveraging cutting-edge technology and sustainable practices to enhance its marine fleet and capabilities.

On the aviation front, Caverton Helicopters is refining its charter business while expanding its Maintenance and Training business units. The Group recently diversified into unmanned aerial vehicles (UAVs), opening new avenues for innovative aerial solutions in the oil and gas, security, and logistics sectors.

Group chief executive officer, Bode Makanjuola, emphasised management’s commitment to sustainable growth and diversification. He highlighted efforts to mitigate foreign currency risks through reduced foreign liabilities and rigorous cost controls across all operations. Makanjuola expressed confidence in the company’s prospects, noting the positive momentum driven by ongoing government reforms and macroeconomic stabilisation, which contributed to improved profitability.

He further underscored Caverton’s strategic collaborations, including the recent partnership with Explomar, as vital to future growth.

“Our collaboration with Explomar marks a significant milestone in our commitment to innovation and sustainability. Developing Nigeria’s first all-electric ferry exemplifies our dedication to environmentally responsible solutions that will revolutionise maritime transportation,” he stated.

“This project, along with other vessel design initiatives, positions Caverton as a leader in green maritime technology in Africa.”

Looking ahead, Caverton said it remained committed to its long-term growth strategy, investing in sustainable projects and strategic alliances that enhance its operational resilience.

The Group’s recent joint venture partnership with NNPC and Stena Bulk, initiated in February 2025, continues to be a key milestone in shipping capacity development. Operations are set to commence later this year, further strengthening Caverton’s maritime capabilities.

Caverton reaffirms its dedication to safety, quality, and security across all operations. By embracing innovative, environmentally sustainable solutions and strategic collaborations, the company aims to deliver long-term value to stakeholders while supporting Nigeria’s economic development.

Further review of the results showed that earnings per share (EPS) also reversed from a loss of 0.54 kobo to a positive 0.62 kobo, underscoring the company’s improved financial health.

Profitability ratios showed marked improvements, with a gross margin of 55.9 per cent, up from 15.2 per cent a year earlier. The net profit margin turned positive at 12.9 per cent, compared to a negative 19.7 per cent in H1 2024. The EBIT to interest expense ratio rose to 27.2 per cent from a negative 11.1 per cent, indicating stronger earnings relative to financial costs.

Caverton’s capital structure remains stable, with a net debt-to-equity ratio of -1.5x, slightly improved from -2.1x in 2024. Long-term debt to total capitalisation held steady at -1.9x. Asset turnover improved to 0.20x from 0.12x, and EBIT to capital employed returned to positive territory at 0.28 per cent, compared to a loss of -0.13 per cent last year.

Alongside the robust financial performance, Caverton announced a strategic expansion into the marine and marine technology sectors, signalling its commitment to enhancing capabilities and growing its footprint in key business areas.

The company’s leadership expressed optimism about sustaining the positive momentum and delivering enhanced value to shareholders as they navigate the evolving industry landscape.