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Bristow Group Provides Update on the Impact of the U.S. Gulf of Mexico on Its Operations
Fiscal 2010 operating income from the U.S. Gulf of Mexico represents six percent of the company's consolidated operating income
HOUSTON, June 10, 2010 /PRNewswire via COMTEX/ --Bristow Group Inc. (NYSE: BRS) today provided an update on the impact of the ongoing deepwater oil spill and the recently announced 180-day moratorium on deepwater drilling in the Gulf of Mexico (the "Drilling Moratorium") on its activity in the U.S. Gulf of Mexico.
"While we expect that the Drilling Moratorium will have a near term negative impact on our operations in the U.S. Gulf of Mexico, we have a large international footprint and our exposure in the U.S. Gulf of Mexico was only six percent of our operating income in fiscal year 2010," said William E. Chiles, President and Chief Executive Officer of Bristow Group.
Although the majority of our work in the U.S. Gulf of Mexico is production related, we currently have three Sikorsky S-92s and six Sikorsky S-76s flying in support of deepwater drilling projects affected by the Drilling Moratorium:
Type Project Block ---- ------- ----- Sikorsky S-92 Large North Platte Garden Banks # 959 Sikorsky S-92 Large Buck Skin Keathley Canyon # 972 Sikorsky S-92 Large Front Runner Green Canyon # 338 Sikorsky S-76 Medium Oceanographer Green Canyon # 973 Production / Sikorsky S-76 Medium Drilling Eugene Island # 300 Sikorsky S-76 Medium Front Runner Green Canyon # 338 Sikorsky S-76 Medium Pony Green Canyon # 468 Sikorsky S-76 Medium Innsbruck Mississippi Canyon # 993 -------------------- --------- ------------------------ Sikorsky S-76 Medium Appaloosa Mississippi Canyon # 503 -------------------- --------- ------------------------
These aircraft are currently generating approximately $3.8 million in monthly revenue and approximately $0.6 million in monthly operating income. We have been notified by customers that they will be releasing two S-92s and five S-76s. As a result, our revenues from this deepwater drilling work may decline by as much as 85% by the end of June 2010. We are actively seeking to redeploy these aircraft to other customers and other geographic regions to keep them earning revenue and income.
In the near term, these declines may be offset by increased work for BP. We are currently flying seven Sikorsky S-76 medium aircraft and two Eurocopter EC135 small aircraft for BP in support of the spill control and monitoring effort. These aircraft are expected to be generating approximately $3.8 million in monthly revenue and approximately $0.7 million in monthly operating income. We anticipate that this activity could continue for several months; however, we have no way to predict whether BP will increase or decrease its need for these or other aircraft in our fleet.
ABOUT BRISTOW GROUP INC.
Bristow Group Inc. is a leading provider of helicopter services to the worldwide offshore energy industry and one of two helicopter service providers to the offshore energy industry with global operations. Through its subsidiaries, affiliates and joint ventures, the Company has significant operations in most major offshore oil and gas producing regions of the world, including the North Sea, the U.S. Gulf of Mexico, Nigeria, Australia and Latin America. For more information, visit the Company's website at http://www.bristowgroup.com/.
FORWARD-LOOKING STATEMENTS DISCLOSURE
Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include statements regarding impact of the Drilling Moratorium, deployment of aircraft and related revenues and operating income, customer needs and activity levels. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's annual report on Form 10-K for the fiscal year ended March 31, 2010. Bristow Group Inc. disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.
SOURCE: Bristow Group Inc.