- Agreements with Leonardo Helicopters and Pratt & Whitney
provide comprehensive, long-term maintenance support for AW139
airframes and engines, respectively
- Aligns multiple, disparate pre-merger agreements into a
cohesive program that will result in lower maintenance costs and
more consistent cash flows for the Company
- These agreements mitigate cost uncertainty in an
inflationary environment and will result in maintenance expenses
that are more directly correlated with flight hours
- Expected cash-on-cash, unlevered returns of approximately 20
percent over the life of the agreements
HOUSTON, June 30,
2022 /PRNewswire/ -- Bristow Group Inc. (NYSE: VTOL)
today announced it has signed long-term, favorable maintenance
support agreements with Leonardo Helicopters for airframes and
Pratt & Whitney for engines on the Company's global fleet of
AW139 helicopters.
The legacy Era AW139 fleet was previously covered by a limited
power-by-the-hour ("PBH") support agreement with Leonardo for the
airframes, while the engines were maintained on a time and cost of
materials basis. The legacy Bristow AW139 fleet was covered by
multiple, disparate PBH support agreements with Leonardo for the
airframes, and the engines were covered under a PBH agreement with
Pratt & Whitney. The new agreements result in consistent,
global maintenance support programs for Bristow's AW139
helicopters, both the airframes and the engines.
"Following the merger of Era and Bristow in June 2020, we have been working for two years to
align our AW139 maintenance support agreements on the most
favorable terms possible for Bristow," said Stuart Stavley, Senior Vice President, Global
Fleet Management. "The cost certainty contained in these agreements
is particularly valuable given the broader economic backdrop of the
current inflationary environment."
The aggregate buy-in cost is approximately $55 million, which will be paid in installments
between June and December 2022.
"These long-term agreements provide greater certainty and better
economics for our global AW139 fleet," said Bristow President and CEO Chris Bradshaw. "In addition to the direct
investment benefits, which we expect to deliver unlevered,
cash-on-cash returns of approximately 20 percent over the life of
the agreements, these new support programs will result in
maintenance expenses that are more directly correlated with flight
hours and provide more predictable cash flows for the Company. In
addition, we believe the standardization of these maintenance
programs and associated reserves enhances the value of Bristow's
AW139 aircraft, and we believe the totality of the agreements,
inclusive of enhanced cash flows for the Company, represents
substantial value creation for Bristow shareholders."
In addition to the AW139 agreements, Bristow has also signed
long-term maintenance support agreements with Leonardo for the
AW189 airframe and with Honeywell for the AW139 avionics suite.
Bristow has also signed a long-term maintenance agreement with
General Electric for support of AW189 and S-92 engines.
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 major integrated,
national and independent offshore energy companies. Bristow
provides commercial search and rescue (SAR) services in several
countries and public sector SAR services in the United Kingdom (U.K.) on behalf of the
Maritime & Coastguard Agency (MCA). Additionally, the Company
offers ad hoc helicopter and fixed wing transportation
services.
Bristow currently has customers in Australia, Brazil, Canada, Chile, the Dutch Caribbean, Guyana, India, Mexico, the
Netherlands, Nigeria,
Norway, Spain, Suriname, Trinidad, the U.K. and the U.S. To learn more,
visit our website at www.bristowgroup.com.
Forward-Looking Statements
Disclosure
This press release contains "forward-looking statements."
Forward-looking statements represent Bristow Group Inc.'s (the
"Company") 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, and include statements
regarding the expected benefits of the maintenance support
agreements disclosed herein. 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. The Company's actual results
may vary materially from those anticipated in forward-looking
statements. The Company 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. The Company disclaims any
obligation or undertaking to provide any updates or revisions to
any forward-looking statement to reflect any change in the
Company's expectations or any change in events, conditions or
circumstances on which the forward-looking statement is based that
occur after the date hereof. Risks that may affect forward-looking
statements include, but are not necessarily limited to, those
relating to: our inability to execute our business strategy; the
credit risk of our counterparties; a shortfall in availability of
aircraft components and parts required for maintenance and repairs
of our helicopter and fixed wing aircraft and supplier cost
increases; global and regional changes in the demand, supply,
prices or other market conditions affecting oil and gas, including
changes resulting from a public health crisis or from the
imposition or lifting of crude oil production quotas or other
actions that might be imposed by the Organization of Petroleum
Exporting Countries (OPEC) and other producing countries;
fluctuations in the demand for our services; the possibility that
segments of our fleet may be grounded for extended periods of time
or indefinitely; the existence of operating risks inherent in our
business, including the possibility of declining safety
performance; the impact of supply chain disruptions and inflation
and our ability to recoup rising costs in the rates we charge to
our customers; and our reliance on a limited number of helicopter
manufacturers and suppliers.
If one or more of these risks materialize, or if underlying
assumptions prove incorrect, actual results may vary materially
from those expected. 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 the Company's Annual Report on Form 10-K for the fiscal year
ended March 31, 2022 (the "Annual
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 Annual 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.
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SOURCE Bristow Group