Caverton Offshore Support Group Plc has reported a pre-tax loss of N8.66 billion for the six months ended June 30, 2026, compared with a pre-tax profit of N2.07 billion recorded in the corresponding period of 2025. The company also reported a net loss of N8.69 billion, reversing the profit of N2.04 billion achieved in the prior-year period as higher administrative expenses and finance costs outweighed revenue generated from its aviation and marine support operations.
This is contained in its unaudited financial statement for H1 2026, seen by Nairametrics.
Key Highlights
- Revenue: N14.68 billion (Down 11% YoY from N16.47 billion)
- Gross Profit: N7.33 billion (Down 22% YoY from N9.37 billion)
- Operating Loss: N283.09 million (Compared with Operating Profit of N11.57 billion in H1 2025)
- Pre-tax Loss: N8.66 billion (Compared with Pre-tax Profit of N2.07 billion in H1 2025)
- Loss After Tax: N8.69 billion (Compared with Profit After Tax of N2.04 billion in H1 2025)
- Administrative expenses: N7.9 billion (Up YoY from N4.73 billion)
- Earnings Per Share: Loss of N2.59 per share (Compared with Earnings Per Share of N0.61)
Driving the numbers
Caverton’s performance was impacted by weaker revenue generation and a sharp rise in operating costs. Revenue declined 11% to N14.68 billion from N16.47 billion in the corresponding period of 2025. Helicopter maintenance generated N4.27 billion, helicopter and airplane contracts contributed N4.36 billion, while vessel agency services generated N3.28 billion. Helicopter charter revenue declined significantly to N1.01 billion from N3.51 billion, contributing to the overall reduction in turnover.
Although operating expenses increased only modestly by 3% to N7.35 billion, gross profit fell 22% to N7.33 billion due to lower revenue. Crew salaries, consumables, vessel charter hire costs and aircraft-related operating expenses remained major cost drivers during the period. Consumables alone amounted to N2.27 billion, while vessel charter hire expenses stood at N998.0 million.
Administrative expenses surge
The most significant pressure on earnings came from administrative expenses, which surged to N7.90 billion from N4.74 billion in the prior-year period. Depreciation expense accounted for N5.37 billion, compared with N1.21 billion a year earlier, making it the single largest administrative cost item. Employee benefit expenses also increased to N563.22 million.
As a result, the company moved from an operating profit of N11.57 billion in H1 2025 to an operating loss of N283.09 million in H1 2026.
Finance costs weigh heavily
Finance costs remained a major drag on profitability. Net finance costs amounted to N8.37 billion, only slightly lower than N9.50 billion recorded in the corresponding period of 2025. Interest expenses on borrowings and lease obligations continued to absorb a substantial portion of operating cash generation, ultimately resulting in a pre-tax loss of N8.66 billion.
On the balance sheet, total assets increased to N122.04 billion from N118.62 billion in H1 2025, supported by growth in trade receivables and the recognition of N6.08 billion in contract assets. However, liquidity weakened considerably as cash and bank balances fell by half to N1.68 billion.
Debt and equity concerns
Interest-bearing loans and borrowings increased to N77.07 billion from N65.79 billion, reflecting continued reliance on debt financing. Shareholders’ funds remained negative at N15.50 billion, indicating that accumulated losses continue to exceed the company’s equity base.
Balance Sheet
- Total External Debt: N77.07 billion (Up 17% from N65.79 billion)
- Total Assets: N122.04 billion (Up 3% from N118.63 billion at December 2025)
- Cash Balance: N1.68 billion (Down 50% from N3.37 billion at December 2025)
Market reaction
Caverton share price closed at N5.50 on Tuesday, August 4, 2026. This represents a 34.91% year-to-date decline when compared to N8.45 it traded on January 14, 2026.
What you should know
The H1 performance came on the back of a pre-tax loss of N13.87 billion in 2025. This represents 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.
