Caverton Offshore Support Group Plc has reversed its losses from the previous year, posting a profit after tax of N1.64bn for the first quarter ended March 31, 2025, driven by strong foreign exchange gains and significant cuts in operating and administrative expenses.
The group’s financial statement filed with the Nigerian Exchange recently shows a marked improvement from the loss of N1.81bn recorded in the same period in 2024, reflecting a turnaround performance bolstered by a 36.7 per cent increase in net exchange difference, which rose from N3.33bn to N4.55bn.
Revenue, however, declined slightly by 3.6 per cent year-on-year, falling from N9.31bn in Q1 2024 to N8.98bn in Q1 2025. Despite the drop, the company aggressively cut down its operating expenses by 39 per cent, from N8.78bn to N5.35bn during the same period, thereby boosting its operating profit.
Operating profit surged to N3.62bn, representing a 585 per cent increase from the N528.97m recorded in the corresponding quarter of 2024. Administrative expenses also dropped significantly by 40 per cent from N3.06bn to N1.83bn, further strengthening the company’s bottom line.
Other operating income for the quarter stood at N20.07m, compared to N24.78m in Q1 2024.
However, the company’s net finance cost rose by 79.5 per cent from N2.62bn to N4.71bn, driven by an increase in interest on borrowings, as total borrowings surged by 25.4 per cent from N27.64bn to N34.66bn during the period.
Profit before tax stood at N1.66bn as against a loss before tax of N1.81bn in the corresponding period of 2024. A tax expense of N15.9m was recorded, leaving the group with a profit after tax of N1.64bn.
The profit is attributable to the owners of the company (N1.62bn) and non-controlling interest (N16.41m). The group’s basic earnings per share for the period stood at 49 kobo, compared to a loss per share of 54 kobo in the same period in 2024.
On the balance sheet side, Caverton’s total assets grew by 2.8 per cent from N76.16bn as of December 2024 to N78.29bn in March 2025. This growth was primarily driven by an 8.02 per cent increase in trade and other receivables, which rose to N40.15bn, and a more than 3,100 per cent surge in prepayments, from N21.06m to N675.25m.
Cash and bank balances also improved by 30.6 per cent to N585.14m, while property, plant and equipment dropped marginally by 2.15 per cent to N18.61bn.
Despite the return to profitability, Caverton’s equity position remains negative, though it improved slightly from a deficit of N54.61bn in December 2024 to a deficit of N52.95bn in March 2025, following the retained earnings boost.
The total liabilities of the group increased marginally to N131.23bn, up from N130.77bn, with lease liabilities and borrowings accounting for a significant portion of its obligations.
The PUNCH reported that Caverton Offshore Support Group Plc has reported an N50.53bn loss for the financial year ended December 31, 2024, marking a decline from the N12.89bn loss recorded in 2023.
