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Old 30th Jul 2015, 13:26
  #189 (permalink)  
nowherespecial
 
Join Date: Jun 2005
Location: nowhere special
Posts: 470
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Max,

Unlike some operators who win loss making contracts just to win them (Inaer Italy's recent forays into Africa being the most recent example), CHC does not have any contracts which are not profitable at the moment (emphasis on at the moment).

Therefore all the business units are profitable. Brazil, Aberdeen and Norway are the big units revenue wise, I think Aberdeen is the biggest.

The major issue CHC faces (as outlined very well by the Seeking Alpha article) is the catastrophic debt CHC holds which comes out of the corporate centre, not the regions. I appreciate that an investor does not need to see the difference and does not.

The debt was accrued by First Reserve issuing debt to buy CHC and then making CHC pay for it. This is what is crippling CHC. Some regions are bleeding more than others with idle ac (undeniably a problem for sure) and the leasing companies are laughing all the way to annual bonuses.

First Reserve have screwed CHC royally and for me it's bordering on criminal. Literally. But I still think it's worth more than 50c odd...
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