Bristow reports “better than expected” second quarter


Bristow AgustaWestland AW139

Bristow Group has seen a “better than expected” second quarter of fiscal year 2018.

The operator’s adjusted EBITDA is up a substantial 27.5% year-on-year from $25.4 million to $32.4 million this quarter. Bristow attributes this growth to increased flight activity across all regions.

As a result, it will raise its fiscal 2018 adjusted EBITDA guidance to $55 million – $85 million from its previous $15 million to $50 million target outlined last year.

Jonathan Baliff, president and CEO of Bristow Group, said: “This second quarter’s financial performance demonstrates the success of the fiscal 2018 improvements with notable accomplishments including OEM cost recoveries and capex deferrals that provide a significant strengthening of our liquidity position, annual EBITDA guidance improvement and positive free cash flow in the quarter.

“Our better than expected EBITDA was a result of higher revenue from increased flying activity across all regions, while also benefiting from the operating leverage created by our lower cost hub structure.”

Group revenue increased 4.2% year-on-year from $345 million in 2016 to $357 million in 2017. This results in a stable operating revenue for the six months ended 30 September, averaging out at $698 million – a 0.3% drop-off from 2016.

Bristow suffered a net loss of $31.2 million this quarter, a 4.6% greater loss year-on-year compared to 29.8 million in 2016. This was driven by higher income tax, rent and interest expense, and a higher loss on disposable assets, it says in its report.

The Group’s liquidity rose $96 million in September, reaching $389.4 million of total liquidity as of 30 September 2017. This is primarily because of a $230 million credit agreement. It expects to end the fiscal year with $410 to $450 million in liquidity.

Operation performance

Despite a challenging market, the Group saw operational revenue up across the board, with the exception of a drop-off in “corporate and other” operations.

Bristow’s oil and gas operations generated $243.8 million in revenue in the second quarter, a 2.3% increase year-on-year from last year’s $238.2 million figure, despite being in a period of “historic oil and gas downturn”, Jonathan Ballif, group president and CEO, said.

The Group’s fixed wing services saw a 9.1% increase in revenue from $52 million last year to $56.7 million this year, and its search and rescue (SAR) services increased 10.2% from $50.85 million for the second quarter of last year to $56 million.

Other operations saw a 44.1% drop-off from $2.6 million to $1.4 million.

Bristow also sold 100% of its flight training operations, resulting in a loss on its disposal of assets of $8.5 million. The full story can be read here.