Bristow Renegotiates Nigeria Contract
Bristow Group has renegotiated a contract with a major customer in Nigeria to include both retroactive and future rate increases. Total estimated revenue for the contract over the renegotiated period is approximately $109 million.
The agreement for helicopter services, which expires in February 2010, includes a rate increase retroactive to July 1, 2007 and rate escalations effective July 2008 and July 2009. Bristow expects to recognize retroactive rate increases and resulting revenue of approximately $1.2 million for the September 30, 2007 quarter in the Company's December 31, 2007 quarterly results.
"We are pleased to announce that we have completed the previously announced contract renegotiations with all of our major customers in Nigeria," said William E. Chiles, President and Chief Executive Officer of Bristow Group. "This latest agreement should result in improved operating margins for our West Africa business unit and is an important step towards meeting our return on capital goal for this region."
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