Caverton Offshore Support’s share price soars by 65% in Sept

• Published On: 14 September 2024 at 12:00

Caverton Offshore Support, a well-known marine and aviation logistics firm, has seen its share price rise by more than 65% month to date on the Nigerian stock market.

The company, which serves the oil and gas sector in Nigeria and Sub-Saharan Africa, has been boosted by positive market sentiment following its announcement to incorporate electric outboard engines from ExploMar (Suzhou) into its marine ferries.

This week, the stock peaked at N2, boosted by bullish trading and increased market activity.

Trading volume more than doubled in the second week of September, indicating an increase in investor confidence.

Caverton's shares had previously fallen to N1.30 in June from a high of N1.80 in March.

However, the stock began to recover in July, as market sentiment improved.

By mid-September, Caverton's stock had risen above N2.20, representing a 65% increase month-to-date.

The company's strategic partnership with ExploMar (Suzhou) Energy Technology Co. Ltd., which focuses on integrating electric outboard engines into passenger boats, has boosted investor confidence.

This initiative is consistent with the global trend toward sustainable transportation and has been well received by the market.

Key indicators:

Caverton reported a 24.8% year-over-year increase in revenue for the second quarter of 2024, from N7.6 billion in 2023 to N9.4 billion.

Pre-tax profit soared to N2.2 billion, up from N184.6 million in the previous year.

Earnings per share also increased significantly, reaching N0.67 in 2024 compared to N0.06 in 2023.

Additionally, the company's cash and cash equivalents increased by 881.1%, reaching N13.4 billion in 2024 from N1.3 billion the previous year.

Caverton announced a strategic partnership with China's ExploMar (Suzhou) Energy Technology Co. Ltd. in August to integrate electric outboard engines into its newly launched passenger ferries, known as OMIBUS.

Bode Makanjuola, CEO of Caverton Offshore Support Group, emphasized the importance of the partnership, saying, "This agreement with ExploMar represents a significant milestone in our journey toward sustainable maritime operations. By leveraging ExploMar's cutting-edge technology, we are raising the bar for passenger ferry services in Nigeria and demonstrating our commitment to a greener future."