Caverton Offshore’s Stock Price Drops to N2.68 on Discrepancies in H1 Results

Kayode Tokede

For announcing discrepancies in its unaudited half year 2024 results, the stock price of Caverton Offshore Support Group Plc has depreciated to N2.68 per share as investors profit-taking rock the support and logistics company quoted on the Nigerian Exchange Limited (NGX).

On the backdrop of profit-taking, the stock price of Caverton Offshore Support Group led other stocks as top losers on the Exchange, dropping by 27.37per cent to N1.01per share from N3.69 per share it opened for trading.

The stock price that reached N4.05 per share last week witnessed a free fall to N2.68 per share when the news of discrepancies in H1 2024 results was filed on the Exchange.

The company reported N3.7 billion loss in H1 2024 from N258.64 million in H1 2023, amid N4.8 billion net finance cost in the period under review as against N763.22million reported in the corresponding period of 2023.

Revenue in H1 2024 stood at N18.8 billion, about 41.5 per cent increase from N13.3 billion reported in H1 2023,

Capital market analysts said investors were anticipating improved performance from the first quarter ended March 2024 but were surprised when the company declared a loss.

They added that investors also reacted over the discrepancies in H1 2024 unaudited result and accounts, calling on thee regulatory body to investigate. 

The Company Secretary/Legal Adviser, Caverton Offshore Support Group, Amaka Obiora in a statement had explained that the management discovered discrepancies in the unaudited H1 2024 financial statements particularly concerning the inaccurate reporting of losses incurred.

She siad,“On behalf of the Company, we wish to express our sincere apologies for this error. Upon investigation, it was found that the issue arose due to a formatting error in the preparation of the financials. We would like to assure the NGX and the investing public that the company had no intention of misleading or deceiving the market.”