Brexit and N. Sea oil slump spin Bristow helicopters deep into the red

Bristow helicopter jobsSales slumped by more than $115 million dollars – while losses ballooned to more than $40 million – in the latest quarterly figures from Bristow Helicopters.

The slump in crude oil prices led to a 19% fall in income in the three months ending Jun 2016.

And the forecast for the rest of this year are equally gloomy, according to Jonathan Baliff, President and Chief Executive Officer of Bristow Group.

He said: “Our June 2016 quarter results reflect the challenging oil and gas industry conditions that continue to negatively affect offshore activity partially offset by the year-over-year growth in UK SAR operations

“The June 2016 quarter oil and gas results are expected to be indicative of the next three quarter’s expected performance with upside from cost reduction initiatives offset by foreign currency exchange rate depreciation

“Foreign currency exchange rate headwinds intensified at the end of the June 2016 quarter primarily due to the British pound sterling depreciation following Brexit with a more significant impact expected in future quarters;

“Our first quarter financial results continued to be severely impacted by the unprecedented challenges the oil and gas industry has been facing since 2014, which intensified in the first quarter of fiscal 2016, as reflected in reduced activity, lower revenue and margins and foreign exchange volatility.”

At the same time, it is facing competition from new operators at Aberdeen, with new aircraft that are able to carry more passengers /freight and further than Bristows.

The US-based company employs almost 2,000 people in the UK – many at Aberdeen airport – and last year announced plans to make up to 130 helicopter pilots redundant as the crude oil price plunged.

Meanwhile, David Mundell, MP the British Govt’s Minister for Scotland, is to hold a series of meetings over the summer with key sectors of the Scottish economy, including N. Sea oil and gas chiefs in Aberdeen.

 

 

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