Bristow Group provided an update on the impact of the ongoing deepwater oil spill and the recently announced 180-day moratorium on deepwater drilling in the Gulf of Mexico on its activity in the U.S. Gulf of Mexico.
"While we expect that the Drilling Moratorium will have a near term negative impact on our operations in the U.S. Gulf of Mexico, we have a large international footprint and our exposure in the U.S. Gulf of Mexico was only six percent of our operating income in fiscal year 2010," said William E. Chiles, President and Chief Executive Officer of Bristow Group.
Although the majority of our work in the U.S. Gulf of Mexico is production related, we currently have three Sikorsky S-92s and six Sikorsky S-76s flying in support of deepwater drilling projects affected by the Drilling Moratorium.
These aircraft are currently generating approximately $3.8 million in monthly revenue and approximately $0.6 million in monthly operating income. We have been notified by customers that they will be releasing two S-92s and five S-76s. As a result, our revenues from this deepwater drilling work may decline by as much as 85% by the end of June 2010. We are actively seeking to redeploy these aircraft to other customers and other geographic regions to keep them earning revenue and income.
In the near term, these declines may be offset by increased work for BP. We are currently flying seven Sikorsky S-76 medium aircraft and two Eurocopter EC135 small aircraft for BP in support of the spill control and monitoring effort. These aircraft are expected to be generating approximately $3.8 million in monthly revenue and approximately $0.7 million in monthly operating income. We anticipate that this activity could continue for several months; however, we have no way to predict whether BP will increase or decrease its need for these or other aircraft in our fleet.
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