Caverton reports pre-tax loss of N13.87 billion in 2025 as revenue declines

Caverton Offshore Support Group Plc has released its 2025 audited results for the period ended December 31, 2025, reporting a pre-tax loss of N13.87 billion, representing a 74.15% reduction from the N53.67 billion loss recorded in 2024.

Also, revenue declined by 40% to N24.1 billion in 2025 compared to N40.2 billion in 2024.

However, the group moved from an operating loss to an operating profit, supported by foreign exchange gains, liability settlements, lease-related gains, and proceeds from an asset disposal.

Key Highlights (2025FY vs. 2024FY)

• Revenue: N24.10 billion (Down 40.01% YoY from N40.18 billion)
• Gross profit: N12.15 billion (Up 44.22% YoY from N8.42 billion)
• Operating profit: N3.60 billion, compared with an operating loss of N30.96 billion in 2024
• Loss after tax: N13.89 billion (Loss narrowed by 74.22% YoY from N53.86 billion)
• Loss per share: N4.11 (Loss narrowed by 74.31% YoY from N16.00)
• Borrowings: N71.36 billion (Up 30.51% YoY from N54.67 billion).
• Total assets: N118.63 billion (Up 55.75% YoY from N76.16 billion)
• Cash and bank balances: N3.37 billion (Up 653.16% YoY from N447.86 million)
• Total equity: Negative N8.76 billion, compared with negative N54.61 billion in 2024.

Driving the numbers

Revenue weakness was broad-based across the group’s disclosed service categories.

• Flight-contract revenue, the largest contributor, fell by 61.36% to N7.74 billion and accounted for 32.11% of group revenue.
• Helicopter-charter revenue declined by 6.82% to N7.60 billion, contributing 31.51%.
• Training-services revenue fell by 35.04% to N4.52 billion, while helicopter-maintenance revenue declined by 19.03% to N2.73 billion.
• Boatbuilding and charter-service income decreased by 5.65% to N1.42 billion, and agency-service revenue fell by 40.64% to N101.79 million.
• Aviation-related activities generated about 93.67% of revenue, leaving marine services with approximately 6.33%.

Although revenue contracted, the cost of sales declined sharply, falling by 62.35% to N11.96 billion. Consumables dropped to N1.48 billion from N11.03 billion; crew-related employee expenses fell to N5.46 billion from N10.73 billion, and training certification expenses declined to N532.64 million from N1.83 billion.

• Consequently, the gross margin expanded to 50.39% from 20.96%.
• The improvement in gross profit was offset by administrative expenses, which increased by 176.25% to N28.99 billion.
• The largest item was a N17.42 billion write-off of security deposits paid on leased aircraft after the group was unable to recover value following the termination of the lease agreements.
• Administrative depreciation also rose to N3.47 billion, while bank charges increased to N2.82 billion from N707.40 million.
• Operating profit was supported by N13.00 billion in other gains, compared with a N27.44 billion loss in 2024.

These gains included N7.68 billion in exchange gains, N3.35 billion from lease termination, N3.28 billion from the settlement of liabilities and N1.29 billion in exchange gains on borrowings, partly offset by a N2.60 billion revaluation loss on Caverton Marine’s assets.

• Other income rose to N6.33 billion from N1.54 billion, largely due to a N5.44 billion profit from the disposal of an asset previously classified as held for sale.
• The group also recorded a N1.11 billion reversal of impairment on financial assets, compared with a N2.99 billion impairment loss in the previous year.
• These items were central to the turnaround from a N30.96 billion operating loss to a N3.60 billion operating profit.

However, finance costs remained substantially above operating profit. Total finance costs fell by 18.72% to N18.64 billion because the group did not repeat the N12.19 billion exchange loss on borrowings reported in 2024.

Nevertheless, interest in debts and borrowings more than tripled to N15.82 billion from N5.22 billion, reflecting the group’s higher debt burden. This pushed the business back into a pre-tax loss after the operating-profit line.

Balance sheet

The balance sheet expansion was driven principally by property, plant and equipment, which increased to N73.78 billion from N19.02 billion following the asset revaluation.

• Total assets consequently rose to N118.63 billion. The N59.72 billion revaluation gain was recorded in other comprehensive income and equity rather than operating profit.
• Liquidity remained under pressure as current assets of N35.92 billion are lower than the current liabilities of N106.25 billion, producing net current liabilities of N70.33 billion.

Current borrowings almost doubled to N53.45 billion, although trade and other payables fell to N44.01 billion from N59.05 billion.

Market reaction

The stock has gained 2.78% year-to-date from its opening 2026 price of N5.40 and up 13.27% month-to-date. At N5.55 per share, its market capitalisation stood at N18.60 billion.