A stock that more than doubled through the first seven months of the year stumbled hard on the first trading session of August. Skyway Aviation Handling Company, traded under the ticker SKYAVN on the Nigerian Exchange, opened at ₦171.20 on August 3 and closed at ₦154.10.
That opening price was also the stock’s 52-week high, first touched at the end of June. The selloff landed one day after SAHCO published unaudited half-year results showing pre-tax profit had fallen 41% year on year, and the next few sessions could shape the stock’s trajectory for months.
SAHCO stock fell 10% on August 3 as sellers overwhelmed thin volume
The NGX Daily Official List for August 3 shows SKYAVN opened at ₦171.20 and closed at ₦154.10, a decline of 9.98% on just eight shares traded. The thin volume suggests a handful of motivated sellers drove the price lower with minimal resistance from buyers.
The broader market gained ground that day, with the NGX All-Share Index rising 0.18% to 245,730.53 points, Nairametrics reported. Market capitalization climbed to ₦158.61 trillion, but breadth remained negative with 38 decliners against 24 gainers.
SAHCO’s 41% profit decline raises fresh questions about cost management
Pre-tax profit for the six months ended June 30 fell to ₦5.83 billion, down 41.49% from ₦9.96 billion a year earlier, Nairametrics reported. Revenue rose 9.25% to ₦23.01 billion, but direct costs surged 63.07%, dragging the gross profit margin from 68.69% to 53.27%.
Equipment repairs more than doubled, equipment running costs tripled, and profit after tax fell 52.73% to ₦3.85 billion. Equipment repairs, equipment running costs, depreciation, and direct labor together accounted for 67.89% of total direct costs, the company’s unaudited filings confirmed.
SAHCO H1 2026 financial snapshot
- Revenue: ₦23.01 billion, up 9.25% year on year (source: SAHCO unaudited H1 2026 results)
- Pre-tax profit: ₦5.83 billion, down 41.49% year on year
- Basic EPS: 284 kobo, down from 601 kobo
- Direct cost-to-revenue ratio: 46.73%, up from 31.31%
SAHCO stock gained 93% in 2026 before the August selloff
SAHCO began 2026 at ₦88.45 and reached ₦171.20 by the end of June, a year-to-date return of 93.56%, the report noted. Full-year 2025 profit after tax had surged 142% to ₦11.73 billion on revenue of ₦44.46 billion, Billionaires.Africa reported. The company also declared a ₦1.20 per share dividend, quadrupling its prior-year payout.
Qudus Adebara, a research analyst at DLM Securities, pointed to SAHCO’s appointment as the sole ground handler at Gateway International Airport as evidence of the company’s growing competitive strength.
“SAHCO’s exclusive appointment at the Gateway International Airport is a strong validation of its operational capabilities and industry leadership. The development positions the Company to benefit from rising air traffic and cargo volumes, particularly as Nigeria intensifies efforts to modernise its aviation infrastructure.” — Qudus Adebara, research analyst, DLM Securities, in a research narrative published on Simply Wall St
Rising costs and expansion plans will shape SAHCO’s next chapter
SAHCO Chairman Taiwo Afolabi, who controls 60.72% of the company, had flagged persistent industry headwinds during a prior annual meeting. High operational costs, infrastructure limitations, and forex volatility remained constraints for aviation stakeholders, Afolabi indicated, as summarized in a research narrative published on Simply Wall St.
The company’s current ratio fell to 1.76 from 3.20 a year earlier as current liabilities jumped 64%. Total assets grew 63% to ₦86.55 billion, but the larger asset base has yet to deliver proportionally stronger returns, the filings showed.
The stock’s 52-week range stretches from ₦80.60 to ₦171.20, meaning shares remain well above their trailing midpoint even after the selloff. The official list shows a trailing P/E of 1,008.97 based on trailing EPS of ₦0.17, though that ratio drops closer to 906 at the closing price of ₦154.10.
SAHCO has outlined plans to expand into the UAE and selected African markets, seeking to transform from a domestic ground handler into a regional aviation logistics platform. Whether that ambition can offset the cost headwinds visible in the H1 numbers will likely determine whether the stock’s 93% climb resumes or gives back more ground in the sessions ahead.
