Surviving the oil slump

[industry insider]

That's quite a clear out at the top. Nigeria fall out probably, it will help to take some cost out of the business as well. Dangerous axe in Bristow.

[Nescafe]

Yes, he was quite adept at wielding the axe, now he has felt it's chop!

[Staticdroop]

Is this a clear-out or are the rats leaving the sinking ship? Also who's running the Nigerian unit now that Mike has "left to follow other opportunities".
Looks like all the companies, apart from Bond/Babcock, are struggling in this climate. How many will be left standing when the oil price finally recovers and the market becomes more bullish.

[nowherespecial]

Static, I'm not disagreeing with you but I would say we don't really know how Babcock MCS and their subdivision are getting on really as their reporting of $ is all internal. The commentary with their last investor report is all text and new bid win values with a comment of 'broadly maintaining MCS margins'. Nothing about MCS made (or lost!) $XX in the last 6 months which I think is really what we'd all like to see!

Not in any way a dig, I wish CHC employed similar rigour to their operations sometimes but without doubt, having access to a huge bank account and diversified model have helped Babcock weather the storm significantly better than CHC or BRS.

[Staticdroop]

Babcock are a huge global company of which their offshore helicopter group is a small part. I'm guessing that means that when they go to bid for a contract the can put a lower bid in as their overheads are not as big as perhaps CHC/BRS have. So while they have to make money of course they don't have to pay for all of the overheads in the way the other companies do. Gives them an edge in this difficult climate I suspect.
This is purely guesswork as I don't have access to their boardroom and their paperwork.
We'll find out soon enough I guess, good luck to those that are involved in this squeeze.