Caverton Reports Massive N50.53bn Loss in 2024

Caverton Offshore Support Group Plc has reported a staggering N50.53bn loss for the 2024 financial year, a significant decline from the N12.89bn loss in 2023. The primary driver was a massive N43.49bn net exchange loss, reflecting the impact of Nigeria’s volatile forex market on the company’s finances.

Despite a 42.7% revenue increase to N45.64bn, rising operating and administrative expenses further strained profitability. Operating expenses rose to N31.93bn, up 28.6%, while administrative expenses increased 12.4% to N12.07bn. Finance costs also climbed 51.3% to N8.81bn.

The company’s foreign exchange losses ballooned by 834.7% to N43.49bn, exacerbating the financial downturn. Consequently, profit before tax plummeted to N50.53bn. Basic earnings per share fell to N15.08, down from N3.85 in 2023.

Caverton’s total assets shrank by 30.9% to N54.81bn, with significant decreases in current assets (down 36.3%) and non-current assets (down 23.5%). Total liabilities, however, increased by 30.5% to N104.50bn, driven by a 45.6% rise in interest-bearing loans and borrowings and a 90.7% jump in trade and other payables. Retained earnings plunged to a negative N58.91bn, resulting in a negative total equity of N49.68bn.

Despite the losses, net cash flow from operating activities improved to N15.42bn. However, cash and bank balances plummeted by 88.9% to N2.27bn, raising liquidity concerns.

Caverton CEO, Bode Makanjuola, acknowledged the difficult economic climate but highlighted the company’s positive operating profit of over N9bn. He emphasized the resilience of Caverton’s business model and its focus on operational efficiency. Makanjuola reassured stakeholders of the company’s commitment to navigating these challenges and positioning itself for future growth. He noted the sensitivity of their core sectors to macroeconomic pressures and their impact on operating costs.

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