Insiders in Caverton Offshore Rapidly Selling Equity Interest
An insider, Molar Vessels Limited with 7.49% shareholding in Caverton has continued to reducing equity interest in the Offshore Support Group after flattish earnings per share growth in the second quarter of 2021, reports on directors insiders dealings show.
Caverton, a highly volatile share is a strong sell according to consensus analysts screening ratings following mounting pressure facing the company’s operations due to the pandemic and sustained heavy borrowings.
Its interest-bearing loans and borrowings jumped from N9.740 billion at the end of the financial year 2020 to N19.99 billion in just six months. It appears the company reduced its financial burden with debt restructuring as short term borrowing declined from N11.106 billion to N3.11 billion in June.
In total, the major shareholders in the offshore support group own 73.76% of the company, according to the first half of the 2021 financial statement.
Key directors in Molar Vessels Supplies limited, a company established to provide supply services to Caverton Plc, include the offshore support group Managing Director, Rotimi Mokanjuola.
As of the first half, Aderemi Mokanjuola owned 12.24% of the support group in what looks like a family empire, but this was against a 13.40% ownership rate a year ago. Another Olabode Makanjuola maintained direct and indirect holdings of 1.93% in the company.
Other Molar Vessels’ directors are, Lolade Abiola who also happens to be Director at Caverton Helicopters Limited and Yoyinsola, wife of Caverton Plc.’s Chairman.
The company is valued by investors at N6.265 billion on 3.35 billion outstanding shares, traded at N1.80 after recording price depreciation from N1.88 in the last 7 trading sessions.
Since Caverton Offshore reported its second quarter earnings results on July 29th, Molar Vessel, a company where at least three Caverton directors have interest have been selling off shares.
Detail from the Nigerian Exchange shows that in August, Molar has dumped 4.645 million shares at an average prices range of N1.80 to N1.83.
The company’s reported a profit after tax of N780 million in the first half of 2021 compares with N766 million reported a year ago amidst rising inflation in the country.
The company’s object clause allows the offshore to provide marine, aviation and logistics services to local and international oil and gas companies in Nigeria. Its pre-tax profit printed at N924 million in the first half.
In a statement issued by the company, it said this result came even in the face of the serious negative impact that the Covid-19 pandemic continues to have on business operations in Nigeria and the rest of the world.
Management believes this has caused a significant reduction in activities by International and Local Oil and Gas companies who are the major clients of Caverton.
Commenting on the results, Caverton’s Chief Executive Officer, Mr. Bode Makanjuola, said that “the result shows our continued determination to re-focus our operations in the face of the challenging economic conditions, to ensure continued business survival and profitability”.
“To boost revenue, the marine service sector of the Group has also been restrategizing to position the company towards exploring further opportunities within and outside the oil and gas sector”.
He said “our Maintenance Repair and Overhaul (MRO) facility and our Simulator Training facility, both in Lagos, have officially commenced business operations in the 2nd half of 2021.
“This heralds a new age in the Nigerian aviation sector and better fortune for the Group. As expected with new projects, the income stream from these two new projects will gradually grow over the years ahead”.
Caverton has a free float of 21.77% at the end of the first half of 2021, in compliance with listing requirements by the Nigerian Exchange for companies listed on its mainboard.
CAVERTON started operation on July 1, 2008, and provides offshore logistics services to the oil and gas industry. It was quoted on the Nigerian Stock Exchange in May 2014. Tasmania Investment Limited controls 54.03%.
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Insiders in Caverton Offshore Rapidly Selling Equity Interest
