Bristow Group: New contracts to generate $2.8B in revenue

Bristow Group Inc., the provider of helicopter services to the offshore energy industry, has announced that since the beginning of calendar year 2014, it has secured several renewal and new multi-year contracts for oil and gas and search and rescue operations (SAR).

The announcement was made in advance of the Johnson Rice Energy Conference.

These contracts provide for a total of 31 large and five medium helicopters and are expected to generate in excess of $2.8 billion in revenue over the current life of the contracts.

Jonathan E. Baliff, President and Chief Executive Officer, commented, “We continue to enter new markets by creating a more integrated logistics solution for our global clients. The renewal of existing contracts in Canada that were not previously disclosed and the securing of new contracts in new markets like the Falklands are proof of our ability to expand through a complete and differentiated suite of point to point transportation services. These successes derive from the innovation and close coordination that our operations, commercial, and finance teams bring to our clients every day, worldwide. These contract wins also exemplify the strong demand we continue to see for offshore logistics services, specifically as it relates to the increasing number of deepwater production facilities across the globe.”

In the European Business Unit, Bristow has been awarded several new contracts:

– A five-year contract for one large helicopter that started in June 2014;

– A previously announced three-year contract for one large helicopter starting in April 2015 with extension options totaling six years;

– Two-year contracts for two different clients for one large and one medium helicopter. One previously announced contract started in June 2014 with up to three year extension options and the second one started in July 2014;

– One-year contracts each for two different clients for three new large helicopters. One previously announced contract started in June 2014, and the other for two large helicopters started in September 2014;

– A one-year contract for three large helicopters starting in February 2015 with a two-year option to support drilling operations. One aircraft will be used for crew change work, the second one will be dedicated to SAR operations while the third helicopter will have dual use; and

– A six month contract for two large helicopters which started in June 2014.

In the North American Business Unit, Bristow also has secured several new contracts:

– A new contract for a large helicopter beginning in February 2015 for one year with a two-year option to extend;

– A previously announced five-year contract for one large helicopter starting in October 2015 with options to extend up to three years;

– A previously announced three-year contract for one large helicopter starting in August 2015 with options to extend up to two years;

– Two previously announced one-year contracts each for two different clients for two large helicopters. One contract started in April 2014, and the second will start in December 2014; and

– Bristow’s Canadian affiliate, Cougar Helicopters Inc., has been successful in renewing a six-year contract for seven existing and two new helicopters starting in March 2016 with options to extend up to four years, as well as an unpriced option for five additional years. This contract award by a consortium of major clients provides for passenger crew change and dedicated SAR services.

Bristow has also secured several new contracts in other operating regions:

– In the Australian Business Unit, Bristow has been awarded three new contracts for six large helicopters. One contract for two helicopters started work in April 2014 for a period of three years with options to extend an additional two years. The second previously announced contract for three helicopters will start work in December 2015 for a period of two years with options to extend an additional two years. The third contract for one helicopter will start work in October 2014 for a period of three years.

– In the West African Business Unit, Bristow has been awarded two new contracts for one medium helicopter each. One contract started in April 2014 for a period of two years with a two one-year options, and the other contract started in May 2014 for a period of one year;

– In the Other International Business Unit, Bristow was awarded a previously announced six month contract for two medium helicopters starting in April 2015.

Jeremy Akel, Bristow’s Chief Operating Officer, said, “Our latest commercial successes illustrate the market’s increasing confidence in the value proposition that the Bristow brand is delivering to our clients. Of particular note is the new contract in the Falkland Islands, which demonstrates Bristow’s ability to deliver logistical support not only in developed basins but also in more remote emerging basins, making us the supplier of choice in the industry.”