Relieved Investors Bid Up Chopper Company Bristow Group Inc (NYSE:BRS)


A better than expected earnings report from Bristow Group Inc (NYSE:BRS), which provides chopper services to the oil and gas exploration industry, gave the stock a lift on Friday.

The stock surged 14.13% to close at $11.63, with 3.41 million shares traded.

Technically, the stock is setting up a bottom in the range of $9 to $11, and Friday’s high volume advance, which at one point took the stock above the 50-day moving average, is a good omen.

Bristow Group Inc (NYSE:BRS) in the fiscal second quarter

For its fiscal second quarter Houston-based Bristow reported EPS of $-0.35, which beat by $0.12, and revenue of $357.47 million, which missed by $14.39 million.

Net loss attributable to shareholders was trimmed to $29.80 million from $42.33 million in the year ago quarter.

The company is of the view that its global oil and gas business is bottoming out. “While our results continue to be impacted by the challenges facing the oil and gas industry, we have been successful on a number of fronts, including generating positive cash flow, reducing and deferring capital expenditures and amending our bank group facilities in order to improve our business in fiscal 2017 and beyond,” said Bristow Group President and Chief Executive Officer Jonathan Baliff in a statement.

Meanwhile the company’s diversification efforts, a means of reducing reliance on oil and gas, have paid off. Bristow launched Search and Rescue services in the UK. Revenue at this unit was up 30% year on year to $50.85 million during FQ2, and up 48.6% year on year to $100.4 million for the first half year.

Bristow Group Inc (NYSE:BRS) cash flow and dividend

The company was also cash positive. During the quarter, it generated $43 million in operating cash flow, and had cash and cash equivalents of $266.6 million.

“With the financial flexibility provided by our current amended debt covenants and the deferral of oil and gas aircraft capital expenditures into fiscal 2019 and beyond, we continue to focus on addressing our debt maturities as part of our commitment to maintaining a prudent balance sheet,” said Don Miller, Senior Vice President and Chief Financial Officer.

Bristow’s Board of Directors approved a dividend of $0.07 per share to be paid on December 15, 2016 to shareholders of record on December 1, 2016.


Leave A Reply