Airnorth future? Bristow in financial trouble
Key assets for disposal include Airnorth and Eastern Airways, based in Australia and the UK respectively, which are both forecast to be negative on earnings before (EBTIDA)
Bristow is about to close it’s Broome base next week as it has finished flying for Inpex after the contract was terminated. In terms of 2014 levels of aircraft (30 now 3) pilots and engineers (140 now 16 each) it’s now 10% of its 2014 size.
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How do you know this? Air North makes a small profit, do you have a source? Or is it "the vibe"?[/QUOTE]
Will Bristows own statement suffice? The vibe about this operation has been around for a while.
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I think the thing to remember here is that Airnorth has been very profitable in the past. They have only started loosing money since Bristow came on board. I have no doubt money has been shifted overseas. At the end of the day, they are a helicopter company attempting to run a fixed wing business - it was never going to work. The sooner they get MB back onboard, the better. Together we try.
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ersa
Same Santos drilling contract they have been supporting contract as Bristow has been supporting from Karratha, 2x S-92s. Bristow has 5 in country now, 3 are heading to the North Sea.
Pavement
The recent Bristow 10Q flings have shown Air North to be making a small loss, profit or loss is highly dependent on the fuel price.
The whole idea was to buy airlines (Eastern in the UK and Air North in Australia) and to control the whole travel supply chain for the offshore oil and gas workforce. But in Australia, Bristow customers didn't buy it, in fact, they are very adverse to having one logistics transport supplier. Bristow canvassed their customers and the reaction was negative.
But one or two management types in Bristow had delusions of grandeur and with the cash rolling in at that time from helicopter operations, they went ahead and did it anyway. After the purchase, Bristow didn't actually try to make the tie up with the helicopter contracts so Air North was always going to be a stepchild. They installed a "tea bag and toilet paper sheet counting" finance type as Air North CEO who had briefly held a position in Bristow as Service Delivery Manager. He was moved to Air North because the Bristow Helicopter customers neither liked the service nor the Manager.
3 S92 are about to turn up for a contract in Port Hedland WA, they were marking the taxi ways out 2 weeks ago
Pavement
The recent Bristow 10Q flings have shown Air North to be making a small loss, profit or loss is highly dependent on the fuel price.
The whole idea was to buy airlines (Eastern in the UK and Air North in Australia) and to control the whole travel supply chain for the offshore oil and gas workforce. But in Australia, Bristow customers didn't buy it, in fact, they are very adverse to having one logistics transport supplier. Bristow canvassed their customers and the reaction was negative.
But one or two management types in Bristow had delusions of grandeur and with the cash rolling in at that time from helicopter operations, they went ahead and did it anyway. After the purchase, Bristow didn't actually try to make the tie up with the helicopter contracts so Air North was always going to be a stepchild. They installed a "tea bag and toilet paper sheet counting" finance type as Air North CEO who had briefly held a position in Bristow as Service Delivery Manager. He was moved to Air North because the Bristow Helicopter customers neither liked the service nor the Manager.
They installed a "tea bag and toilet paper sheet counting" finance type as Air North CEO who had briefly held a position in Bristow as Service Delivery Manager. He was moved to Air North because the Bristow Helicopter customers neither liked the service nor the Manager.
WaanBeBiggles
Same one. Ex Finance Manager Bristow, Head of Bristow Travel where he honed his tea bag counting and toilet paper rationing skills. After a brief spell as Bristow Service Delivery Manager, a new concept introduced by the then Bristow Australia CEO but which lasted only weeks, the purchase of Air North provided a promotion opportunity which also conveniently moved him away from the important oil and gas clients.
The Bristow Financial Year ends in April. Between April 2017 and April 2018 (latest figures not yet available) Bristow (mostly) and Air North lost $31,776,293 between them in Australia alone.
If it's the person that is still CEO at AN now, then that individual is also CEO of Bristow Australia.
The Bristow Financial Year ends in April. Between April 2017 and April 2018 (latest figures not yet available) Bristow (mostly) and Air North lost $31,776,293 between them in Australia alone.
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From memory AirNorth accounted for less than $2mil of that loss, roughly the cost of only one second hand CF34-8E from the sandpit. How many new engines did AN need in the last FY? So if it weren't for that, it wouldn't be a stretch to argue the company is a profitable entity..
FY15: EBITDA $0.7m (1Q Only)
FY16: EBITDA $12.4m (No Loss Making Qs)
FY17: EBITDA $8.9m (No Loss Making Qs)
FY18: EBITDA $7.2m (Q4 Loss of $1.4m)
FY19: EBITDA -$1.6m (Q1 Profit of $0.2m)
Great, their EBITDA figures are not too bad. What about after they have paid their bills? My earnings before tax are pretty good too but those dollars are useless in the real world as I cannot spend them.
EBITDA. Earnings BEFORE interest, tax, depreciation and amortisation.
EBITDA. Earnings BEFORE interest, tax, depreciation and amortisation.
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Great, their EBITDA figures are not too bad. What about after they have paid their bills? My earnings before tax are pretty good too but those dollars are useless in the real world as I cannot spend them.
EBITDA. Earnings BEFORE interest, tax, depreciation and amortisation.
EBITDA. Earnings BEFORE interest, tax, depreciation and amortisation.
Therefore, after D and A and even accounting for some I, they probably paid next to no tax and got to keep most all of the cash actually!
