Caverton Offshore Support Group PLC, once the high-flying leader of Nigeria’s oil and gas logistics sector, has fallen into a state of technical insolvency.
The provider of marine and aviation services saw its balance sheet flip into negative territory in the 2025 fiscal year, as recurring losses and a sharp contraction in its core helicopter contracts eroded its capital base.
The company’s total liabilities now stand at ₦125.95 billion, outweighing its ₦116.26 billion in assets. This deficit has resulted in a negative shareholders’ fund of ₦9.69 billion, signaling that the firm’s obligations have officially outpaced its value.
The Equity Deficit: A Balance Sheet in Crisis
Caverton’s slide into technical insolvency follows a multi-year struggle to maintain liquidity amid a shifting energy landscape:
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Net Asset Erosion: The negative net asset value of ₦9.69 billion means the company is effectively operating on borrowed time and capital, requiring an urgent equity injection or debt restructuring to remain a going concern.
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Loss Narrative: While the 2025 net loss of ₦11.83 billion was a narrowed improvement over the staggering ₦53.86 billion loss in 2024, it was still enough to push the group over the brink.
Revenue Turbulence: Helicopter Contracts Plummet
A drastic reduction in flight operations and airplane contracts has hollowed out the group’s top line:
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Revenue Slump: Total revenue fell 35.81% to ₦25.75 billion, down from ₦40.18 billion the previous year.
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Fleet Grounding: The most severe blow came from the Helicopter/Airplane Contract segment, where sales collapsed by 54.06% to ₦9.20 billion. The slump reflects a curtailment in activity from major oil producers and increased competition in the offshore logistics space.
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Impairment Shock: Financial pressures were compounded by a 300% spike in impairments on financial assets, which jumped to ₦12 billion, indicating deepening difficulty in recovering receivables.
Caverton says it is carrying out reforms that span all key departments within the business with the aim of improving operational efficiency and restoring profitability.
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