Bristow(US:VTOL)2025-05-07 15:00Financial Data and Key Metrics Changes - Revenues decreased by $3 million primarily due to lower utilization in the Other Services segment, partially offset by higher revenues from new contracts [9] - Adjusted EBITDA remained consistent at $58 million, with lower operating and administrative expenses offsetting the decrease in revenues [10] - Available liquidity as of March 31 was approximately $254 million, with 86% of capital investments for new government services contracts funded [12] Business Line Data and Key Metrics Changes - Offshore Energy Services (OES) revenues in Europe decreased by $4.5 million due to lower utilization in the UK, while revenues in Africa increased by $2.2 million and in the Americas by $1.9 million [10] - Government Services revenues increased by $3.4 million, primarily due to the Irish Coast Guard contract [11] - Other Services revenues decreased by $6 million due to lower seasonal activity in Australia and unfavorable foreign exchange impacts [11] Market Data and Key Metrics Changes - The company noted that macroeconomic risks and uncertainties have increased, particularly due to U.S. tariffs on steel and aluminum imports affecting repair and maintenance costs [6] - Concerns about slowing economic activity could lead to decreased demand for crude oil and natural gas, impacting customer spending plans [7] - Despite these challenges, the company maintains a positive outlook for its offshore Energy Services business, particularly for deepwater projects [7] Company Strategy and Development Direction - The company aims to lead in vertical flight solutions, focusing on the ongoing launch of search and rescue services and transitioning operations for new contracts [15][16] - The company is committed to sustainability and minimizing its environmental footprint while maintaining operational resilience [18] - The strategic focus includes leveraging stable cash flows from Government Services and the diversity of geographic markets served [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in affirming financial guidance for 2025 and 2026, supported by stable cash flows from Government Services and the nature of offshore energy revenues [8][18] - The company anticipates that deepwater projects will continue to attract investment due to their favorable economic returns [15] - Management acknowledged supply chain challenges but noted incremental improvements in component deliveries [37] Other Important Information - The company is involved in a project in Norway for zero and low emission aircraft, with demonstration flights expected to begin soon [29] - A long-term agreement with Sikorsky for S-92 support provides price visibility and stability for a significant portion of the fleet [25] Q&A Session Summary Question: Why is the company reaffirming guidance amid market uncertainty? - Management conducted a thorough review of the macro environment and customer plans, leading to confidence in reaffirming guidance due to stable cash flows from Government Services and the nature of offshore energy revenues [22][24] Question: What are the benefits of the new S-92 agreement with Sikorsky? - The agreement provides price visibility and stability for a large portion of the fleet, enhancing business management capabilities [25] Question: How confident is the company in the remaining CapEx related to the Irish contract? - Management expressed confidence in the remaining CapEx, which is primarily related to infrastructure and modifications rather than airframe deliveries [26][28] Question: Have there been improvements in supply chain challenges? - Management noted incremental improvements in component deliveries for the S-92 fleet, although challenges persist across the broader aviation industry [37][38] Question: What impact have oil prices had on offshore activity? - Currently, there has been no tangible impact on offshore activity, with deepwater projects well-positioned within oil and gas portfolios [43][44]