Caverton Posts N8.66bn Pre-tax Loss in H1 2026 as Costs Surge

Caverton Offshore Support Group Plc reported a pre‑tax loss of N8.66 billion for the six months ended June 30 2026, reversing a N2.07 billion profit in the same period of 2025. The company also posted a net loss of N8.69 billion, down from a N2.04 billion profit a year earlier. Revenue fell 11% year‑on‑year to N14.68 billion, while administrative expenses jumped to N7.90 billion from N4.73 billion, driven by a N5.37 billion depreciation charge. Finance costs remained high at N8.37 billion, pushing the operating result to a N283.09 million loss versus an N11.57 billion profit in H1 2025. On the balance sheet, cash and bank balances fell 50% to N1.68 billion, interest‑bearing loans rose to N77.07 billion, and shareholders’ funds stayed negative at N15.50 billion. The share price closed at N5.50 on August 4 2026, a 34.9% year‑to‑date decline from N8.45 in January.

These figures show Caverton’s core aviation and marine support operations are being overwhelmed by rising overheads and debt‑service costs, eroding profitability despite modest asset growth. For investors, the worsening liquidity and growing debt raise concerns about the company’s ability to sustain operations without further capital injections or restructuring.

If you hold Caverton shares or are considering an investment, would you keep the stock given the declining cash flow and rising debt, or look for companies with stronger balance sheets in the offshore support sector?

SOURCE: https://nairametrics.com/2026/08/05/caverton-posts-n8-66-billion-h1-loss-as-admin-costs-surge/