Helicopter transport co. Bristow Group says drilling moratorium will slim Gulf revenue

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Bristow revenue in Gulf trimmed by moratorium

HOUSTON — Bristow Group, which provides helicopter service to the offshore oil industry, said revenue from deep water drilling operations in the Gulf of Mexico may slide as much as 85 percent by the end of June because of the six-month moratorium on deep water drilling in the Gulf.

The company, which has large international operations, said that revenue from the Gulf generates about 6 percent of its operating income. Part of the loss of revenue is being offset by new work from oil company BP PLC, which is trying to contain a massive oil spill that prompted the moratorium.

The company said Thursday it has nine helicopters flying in support of deepwater drilling projects affected by the moratorium.

President Barack Obama imposed the moratorium after an April explosion on Deepwater Horizon oil rig, which triggered a spill that has sent millions of gallons of oil into the waters of the Gulf.

The company said the nine helicopters generate $3.8 million in revenue per month and approximately $600,000 in monthly operating income. Customers have told the company that they are releasing seven of the helicopters.

The company said it is trying to get the aircraft deployed to other regions.

Bristow has nine aircraft flying in support of the spill control and monitoring efforts.

These aircraft are generating about $3.8 million in monthly revenue and about 700,000 in monthly operating income. The company said it anticipates that this activity could continue for several months, but that it has no way of predicting whether BP will increase or decrease its need for the aircraft.