Caverton Offshore Support Group Plc is one of the latest companies in Nigeria to report a return to profitability for the full year ended December 31, 2025, posting a profit after tax of ₦2.04 billion—a significant turnaround from the ₦7.64 billion loss recorded in the previous year—according to its unaudited consolidated financial statements.
News.ng reports that the aviation and marine logistics company, which provides critical support services to Nigeria’s oil and gas industry, demonstrated remarkable operational recovery despite challenging macroeconomic conditions, even as revenue declined by 11% to ₦3.74 billion from ₦4.19 billion in 2024.
The financial statements, signed by Chief Executive Officer Olabode Makanjuola and Chief Finance Officer Adedeji Adeola, were approved by the Board of Directors on January 30, 2026.
The company’s return to profitability was driven primarily by aggressive cost management and improvements in operational efficiency. Operating expenses were slashed by 88% to ₦2.01 billion from ₦10.22 billion in the prior year, reflecting restructuring efforts and streamlined operations.
Net foreign exchange gains of ₦2.36 billion, compared to losses of ₦7.79 billion in 2024, also contributed significantly to the bottom-line recovery, as the company managed its currency exposure more effectively amid naira volatility.
Operating profit stood at ₦2.04 billion for the year, a dramatic improvement from the ₦5.23 billion operating loss recorded in 2024. Administrative expenses declined to ₦2.01 billion from ₦9.75 billion, further demonstrating the company’s commitment to cost discipline.
More importantly, Caverton’s total assets surged by 53% to ₦116.27 billion as of December 31, 2025, from ₦76.16 billion in the previous year. This growth was primarily driven by a substantial increase in property, plant and equipment, which rose to ₦69.72 billion from ₦19.02 billion—an increase of 267%—suggesting significant capital investments or revaluation adjustments.
The revaluation surplus accounted for ₦56.84 billion of the equity position, indicating asset revaluations that strengthened the company’s balance sheet.
Right-of-use assets declined to ₦1.50 billion from ₦3.30 billion, while goodwill remained unchanged at ₦6.03 billion compared to ₦6.03 billion in December 2024.
Current assets fell by 19% to ₦38.04 billion from ₦47.02 billion, with inventories remaining relatively stable at ₦9.34 billion. Trade and other receivables declined by 25% to ₦27.96 billion from ₦37.17 billion, suggesting improved collections or reduced business activity.
Cash and bank balances stood at ₦690.52 million, down 54% from ₦1.47 billion in the previous year, raising questions about liquidity management despite the return to profitability.
Total current liabilities decreased slightly to ₦89.52 billion from ₦94.99 billion, with trade and other payables falling by 16% to ₦49.33 billion. However, interest-bearing loans and borrowings (current portion) rose by 29% to ₦35.52 billion from ₦27.64 billion, indicating increased near-term debt obligations.
Despite the return to profitability, shareholders’ equity remained in negative territory at ₦9.69 billion (net deficit), though this represents a significant improvement from the ₦54.61 billion deficit recorded in December 2024. The ₦44.91 billion improvement was driven by the year’s profit and revaluation gains.
Retained earnings showed a deficit of ₦74.33 billion, compared to ₦62.49 billion in the previous year, reflecting accumulated losses over time. Share capital and share premium remained unchanged at ₦1.68 billion and ₦6.62 billion, respectively.
Non-controlling interest stood at a deficit of ₦494.52 million, compared to ₦408.95 million in 2024.
Total liabilities declined to ₦125.96 billion from ₦130.77 billion. Non-current interest-bearing loans and borrowings increased by 12% to ₦30.26 billion from ₦27.03 billion, while lease liabilities fell by 26% to ₦6.18 billion from ₦8.38 billion.
Breaking down performance by period, Caverton recorded an operating profit of ₦8.75 billion in the January–December 2025 period, compared to an operating loss of ₦6.69 billion in October–December 2025, highlighting significant quarterly volatility.
The company reported basic earnings per share of 2.18 kobo for the January–December period, a sharp improvement from the loss per share of 15.96 kobo recorded in the corresponding period of 2024.
While the return to profitability marks a significant milestone for Caverton, the company continues to face challenges, including substantial debt obligations, negative working capital, and accumulated losses. The sustainability of the turnaround will depend on its ability to grow revenue, maintain operational efficiency, and manage its capital structure effectively.
Following the impressive report, Caverton has also shown signs of recovery amid increased exploration and production activities in Nigeria’s oil and gas sector.
