Bristow Group Reports Update on Operational Status and Impact of Recent Storms
HOUSTON, Oct. 7 /PRNewswire-FirstCall/ -- Bristow Group Inc. (NYSE: BRS) today issued the following status update about the effect on Bristow of the recent storms in the U.S. Gulf of Mexico (GOM).
A total of four bases were damaged by Hurricane Ike: Galveston, Intracoastal City, and Creole, which were previously reported, and Sabine Pass which is a base that is used infrequently. In addition, several bases were damaged in prior storms this year. Flight activity from these damaged bases was redirected to other operational bases along the Gulf of Mexico and has recently resumed in Venice and Intracoastal City. We continue to experience higher than normal operating costs due to the Galveston and Creole bases operating from other locations. In addition, we expect September quarter results to reflect approximately $2 million of reduced operating income related to insurance deductibles, unreimbursed property, evacuation and redeployment expenses, and reduced flight hours. Due to the timing and magnitude of these storms, which were more severe than usual, it took longer than expected for our customer activity to return pre-storm levels. We believe that in future periods, we may experience higher-than-normal flight hours to support our customers' offshore reconstruction efforts.
The closing of the previously announced sale of 53 single-engine aircraft and the related business of transportation services for offshore production management services to Rotorcraft Leasing Company (RLC) is continuing to progress and is expected to be completed in October 2008. The transaction continues to be subject to several closing conditions, including regulatory clearance and transition matters. This sale is part of the strategic changes we are making to the mix of our aircraft operating in the GOM to larger and newer models. The new large S-92 aircraft we took delivery of earlier this year is operating for a customer, and we recently took delivery of a second S-92, which we expect to have on contract by December 31, 2008.
ABOUT BRISTOW GROUP INC.
Bristow Group Inc. is the leading provider of helicopter services to the worldwide offshore energy industry based on the number of aircraft operated. Through its subsidiaries, affiliates and joint ventures, the Company has major transportation operations in the U.S. Gulf of Mexico and the North Sea, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Mexico, Nigeria, Norway and Trinidad. For more information, visit the Company's website at http://www.bristowgroup.com.
FORWARD LOOKING STATEMENT
Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future, including those relating to operating income, customer activity and flight hours and the completion of the transaction with RLC, are forward-looking statements. 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 quarterly report on Form 10-Q for the period ended June 30, 2008 and the annual report on Form 10-K for the year ended March 31, 2008. 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.
Contact:
Linda McNeill, Investor Relations
(713) 267-7622
SOURCE Bristow Group Inc.
Released October 7, 2008