Bristow hails passing ‘positive inflection point’ in Q3 2023 results

Bristow Group has passed “a positive inflection point”, according to its president and CEO Chris Bradshaw, after the helicopter operator posted net income of $4.3m ($0.15 per diluted share) in the third quarter (Q3) of this year compared with a net loss of $1.6m ($0.06 per diluted share) in Q2.

Total Q3 revenues reached $338.1m compared with $319.4m in the second quarter of this year. EBITDA, adjusted to exclude special items, asset dispositions and foreign exchange factors, was $56.6m – up from $39m in the previous quarter.

Commenting on the results Bradshaw said: “Consistent with our outlook that the second half of 2023 would mark the positive inflection point for Bristow’s financial results, Q3 Adjusted EBITDA of $56.6 million represents a 45% sequential quarter improvement and supports our outlook for stronger financial results in 2024 and beyond.”

Bristow raised the company’s full-year 2023 adjusted EBITDA guidance range to $165m-$175m. “The fundamentals for Bristow’s business continue to strengthen, supporting our belief that we are in the early stages of a multi-year growth cycle,” said Bradshaw. “With the largest and most diverse aircraft fleet in the industry and the largest operational footprint, Bristow is well-positioned to benefit from opportunities in this upcycle.”

Q3 operating revenues were $18.7m higher than the previous quarter, with revenues from offshore energy services up $17.8m higher. This was mainly due to higher utilisation in each geographic region and higher lease payments received from Cougar Helicopters.

Operating revenues from government services were $1.8 million lower, mainly due to the transition from an interim contract to the tendered contract for the Dutch Caribbean Coast Guard. (This was partially offset by higher utilisation and the strengthening British pound sterling relative to the US dollar. Operating revenues from fixed wing services were $2.7m higher in Q3 mainly reflecting higher utilisation rates.

Bristow reported higher personnel and fuel costs in Q3 but these were offset by lower insurance costs, repairs and maintenance and other operating costs.

Bristow Q3 results – at a glance

• Total revenues of $338.1m versus $319.4m in Q2
• Net income of $4.3m ($0.15 per diluted share) versus net loss of $1.6m ($0.06 per diluted share) in Q2
• Adjusted EBITDA of $56.6m versus $39m in Q2
• Raised 2023 Adjusted EBITDA outlook mid-point and reaffirmed 2024 financial outlook.

Source: Bristow Group.