Bristow Upgrades Fleet with New AW189 Helicopters to Meet Customer Demand and Boost Profitability
- Strategic fleet expansion with 10 new AW189 helicopters to drive EBITDA growth
- Enhanced operational efficiency with superior performance and lower CO2 emissions
- Support for offshore transport and search and rescue missions
- Commitment to sustainability and customer needs
- Agreement with Leonardo for 10 AW189 helicopters with options for 10 more
- Operational flexibility and environmental performance improvements
- None.
Insights
Bristow Group Inc.'s fleet expansion through the acquisition of 10 new AW189 helicopters is a strategic move that is expected to have a significant impact on the company's earnings before interest, taxes, depreciation and amortization (EBITDA). The focus on financially sound operations suggests a careful consideration of cost-benefit analysis, with an expectation of attractive returns on investment. The operational efficiency and potential for lower maintenance costs due to the 10-year maintenance support agreement with Leonardo could lead to improved cash flows and margins. Investors should consider the implications of this fleet expansion on the company's long-term financial health, particularly in terms of capital expenditure, debt levels and the potential for increased revenue from expanded service capabilities.
The environmental aspect of the fleet expansion is noteworthy, as the new AW189 helicopters are touted to have lower CO2 emissions than comparable aircraft and are capable of operating on Sustainable Aviation Fuels (SAFs). This move aligns with increasing global emphasis on sustainability and could position Bristow favorably in markets where environmental regulations and client preferences are becoming more stringent. The ability to operate SAFs could also provide a hedge against future regulatory changes or carbon taxation schemes. Stakeholders with an interest in corporate sustainability should monitor the progress of these initiatives and their impact on the company's environmental, social and governance (ESG) metrics.
The diversification into search and rescue (SAR) missions, including the recent contract win for Coast Guard services in Ireland, indicates Bristow's strategic intent to tap into additional revenue streams. The SAR operations, coupled with offshore transport services, expand the company's market reach and resilience against sector-specific downturns. Market analysts should evaluate the competitive landscape and potential market size for SAR services, as well as the demand for offshore transport, to determine the growth prospects afforded by this fleet expansion. Furthermore, it's important to assess how the addition of these helicopters may affect Bristow's market share and positioning in comparison to its competitors.
- Bristow's strategic fleet expansion will drive EBITDA growth at attractive returns
- Bristow's order for 10 new AW189 helicopters underscores the Company's commitment to customer-focused and financially sound operations
- The new aircraft will offer added flexibility as well as superior operational and environmental performance, including lower CO2 emissions than comparable aircraft types
- The aircraft deliveries will occur over a three-year period from 2025-2028
"The AW189 is a leading super medium helicopter offering reliable and safe long-range, high-capacity performance, while allowing for lower operating costs than traditional heavy helicopters," said Bristow President and CEO Chris Bradshaw. "We are upgrading our fleet while taking a proactive approach to the evolving needs of our customers. In addition, this strategic investment will further our sustainability initiatives while driving EBITDA growth at attractive returns."
These new AW189 helicopters will offer added flexibility as well as superior operational and environmental performance including lower CO2 emissions than comparable aircraft types. The new aircraft will also be capable of operating Sustainable Aviation Fuels (SAFs) in the future due to certification standards already received by Leonardo.
In 2022, Bristow and Leonardo signed a 10-year maintenance support agreement for Bristow's AW139 and AW189 fleets, which aligned multiple, disparate agreements into a cohesive program resulting in lower maintenance costs and more consistent cash flows for the Company. These agreements also mitigate cost uncertainty in an inflationary environment and result in maintenance expenses that are more directly correlated with flight hours.
In addition to its Offshore Energy Services business, Bristow also operates SAR-equipped AW189 helicopters in its Government Services business, including for HM Coastguard and the Maritime and Coastguard Agency (MCA) in the
Forward-Looking Statements Disclosure
This press release contains "forward-looking statements." Forward-looking statements represent Bristow Group Inc.'s ("Bristow") current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project," or "continue," or other similar words. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, reflect management's current views with respect to future events and therefore are subject to significant risks and uncertainties, both known and unknown. Without limiting the generality of the foregoing, such forward-looking statements include statements regarding the capabilities, marketing and future operations of the Leonardo AW189 helicopter and Bristow's purchase of aircraft from Leonardo. Bristow's actual results may vary materially from those anticipated in forward-looking statements. Bristow cautions investors not to place undue reliance on any forward-looking statements.
Forward-looking statements speak only as of the date of the document in which they are made. Bristow disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in Bristow's expectations or any change in events, conditions, or circumstances on which the forward-looking statement is based that occur after the date hereof. You should not place undue reliance on our forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties, and other unpredictable factors, many of which are beyond our control. Our forward-looking statements are based on the information currently available to us and speak only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for us to predict these matters or how they may affect us. We have included important factors in the section entitled "Risk Factors" in Bristow's Transition Report on Form 10-KT for the year ended December 31, 2022 (the "Transition Report") which we believe over time, could cause our actual results, performance, or achievements to differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements. You should consider all risks and uncertainties disclosed in the Transition Report and in our filings with the United States Securities and Exchange Commission (the "SEC"), all of which are accessible on the SEC's website at www.sec.gov.
About Bristow Group
Bristow Group Inc. is the leading global provider of innovative and sustainable vertical flight solutions. Bristow primarily provides aviation services to a broad base of offshore energy companies and government entities. The Company's aviation services include personnel transportation, search and rescue ("SAR"), medevac, fixed-wing transportation, uncrewed air systems and ad hoc helicopter services. Bristow currently has customers in
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