HI Uplift: Bristow CEO welcomes offshore opportunities
Bristow and Leonardo agreed an AW139 and AW189 support and training deal last November. (Photocredit: Bristow).
Bristow Group welcomed worldwide opportunities – particularly growth in offshore energy markets – during an investors’ call last week. The only clouds darkening the operator’s sunny world view are continuing supply chain challenges including the prospect of US tariffs.
Chris Bradshaw, president and CEO revealed a 9% increase in revenue to $1.4bn in full-year results for 2024 compared with $1.3bn in the previous year. Fourth-quarter results were also described as “very strong”, with both the quarter and full-year results exceeding last year’s outlook range.
“This outperformance was driven by strong growth in our offshore energy services business, where industry fundamentals remain positive,” said Bradshaw. “We continue to believe that we are in the midst of a multi-year upcycle.”
Offshore energy
Jennifer Whalen, senior vice president and chief financial officer, reminded investors that the operator had restructured its reporting structures into three segments. These are: Offshore energy, government services – mainly search-and-rescue (SAR). Its third segment includes everything else mainly fixed wing missions, supplying transportation through scheduled passenger flights and aircraft charter services.
Whalen attributed the $113m rise in offshore revenues in 2024 compared with 2023 to higher utilisation and increased rates in Africa, the start of new contracts in Brazil, higher utilisation in other parts of the Americas and the launch of a new contract in Norway. This increase in activity and revenues was partially offset by higher repairs and maintenance costs of $20m and operating personnel costs of $8.7m due to the increased activity. Adjusted operating income from offshore was $84m higher last year.
Bradshaw warned of the energy market’s inherent volatility and the need to maintain a robust balance sheet to withstand market cycles. The company intends to pay down debt to a balance of about $500m by the end of 2026.
Bradshaw added: “At the same time, we will continue to execute on compelling growth opportunities such as the long-term government SAR contracts, as well as the attractive opportunities we have to introduce new AW189 helicopters to meet customer demand and boost profitability in our offshore energy services segment.”
New S-92 contract
The offshore markets singled out for their growth potential were west Africa – with Nigeria being a strong positive contributor – plus Brazil and the Caribbean triangle including new projects in Suriname. But the company also reports strength in more mature markets like the Gulf of Mexico. “Not the same growth rates given the size, but there is incremental demand here in the US,” said Bradshaw. “We just started a new S-92 contract for a customer here in the US at the beginning of this year, and we see incremental demand over the course of ’25 and ’26 as well.”
Revenues in Bristow’s second largest sector – government services – were $7.6m lower than last year, due mainly to a change in rates after transitioning to a long-term contract with the Dutch Caribbean Coast Guard. Adjusted operating income was $10m lower in 2024, because of aircraft availability penalties related to supply chain challenges hitting its UK SAR contract, the start-up cost for the Irish Coast Guard SAR contract and the transition to the long-term DCCG contract.
Whalen added: “However, it is important to note that the duration of these contracts generally lasting 10 or more years with additional one-to-three-year extension options, provide stable long-term cash flows with high credit quality customers, strong margins and reliable capital return once operations are fully ramped.”
Opportunities in Australia
Asked about new government contracts, Bradshaw said while nothing was imminent, the company expected new opportunities in Australia where the existing SAR support services is expected to come to tender over the next couple of years. There may also be opportunities in the Middle East. “We’re seeing some potential interest to launch search-and-rescue services to privatise those services for those communities as well as in Europe, probably more around training opportunities that could exist,” he said.
While the outlook seemed sunny – with the company affirming its guidance to maintain revenue at $1.4bn this year – supply chain challenges and the prospect of trade tariffs imposed by President Trump could cloud short term prospects.
Bristow said it was monitoring developments, after president Trump this week re-affirmed his plan to impose 25% tariffs on imports from Canada and Mexico, due to come into effect on March 4th. (The president also said he planned to apply a new 10% tariff to Chinese imports following an initial 10% border tariff announced earlier this year).
“We do have a portion of our supply chain that comes through Canada, engines and other components and we have a heavy portion of our supply chain that’s coming out of Europe,” said Bradshaw. “This is definitely an important issue that we monitor.”
But current helicopter orders from Europe would be unaffected by any new tariffs. “As it [the prospect of tariffs] relates to the new deliveries that we’re bringing into the fleet – whether it’s the H135 light twins that we’re taking delivery of right now or the AW189 orders that we have in place – those are fixed and firm prices. So, will not be impacted by tariffs.”
New Helicopter Investor Deal of the Year Awards
Helicopter Investor’s new Deal of the Year Awards aims to give credit where credit is due by recognising excellence in rotary finance transactions. We need your help to find worthy winners.
Whether it’s financial deals supporting life-saving search and rescue and air ambulance missions or powering the growth in offshore energy supply and other deployments, we want to celebrate the very best of helicopter finance deals.
To help us highlight that innovation and excellence, we are recruiting an independent panel of leading industry financial insiders. Reaching for their calculators to help us select category winners will be Clark McGinn, founder of consultancy UpLifting Aviation, John Mannion, MD of Kylemore Group, Conor O’Briain, director and Helicopter Finance leader at PwC Ireland and Ed Washecka, CEO, RACE Aviation Partners.
Please click here to find out more and how to make a nomination. Thank you.
HI Uplift Dashboard: Helicopters for sale
Multi engine
- Total for sale/lease: 294 – one more than last week
- Percentage for sale/lease: 3.94
- Absorption rate: 4.12 months
- Total fleet: 7,468 – 10 more than last week.
Single engine
- Total for sale/lease: 444 – three more than last week
- Percentage for sale/lease: 3.84
- Absorption rate: 4.12 months
- Total fleet: 11,554 – nine more than last week.
Source: Amstat, February 28th, 2025.
