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What's happening in CHC?

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What's happening in CHC?

Old 3rd Aug 2015, 22:25
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https://www.energyvoice.com/oilandga...ea-job-losses/
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Old 4th Aug 2015, 00:33
  #202 (permalink)  
 
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fish CHC Doom and Gloom....

Oh bugger...! Should have stuck to being a postman!

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Old 4th Aug 2015, 10:38
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Unless you subscribe to the Double Bogey school of "everything North Sea helicopter is brilliant" it can not be a surprise.
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Old 4th Aug 2015, 11:38
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Surely with CHC taking on the Shell crew change from Abz things can't be all that bad or have they lost or not renewed other contracts. I believe Marathon oil is due to be awarded soon.
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Old 4th Aug 2015, 14:49
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Bleepup

It almost doesn't matter any more if CHC win lose or retain any contracts. The previous 11 pages of this thread are pretty clear that CHC is failing to make a profit on its existing contracts (due to debt and leasing costs) and there are no new contracts out there that are going to be that lucrative in this market.

The city has lost all confidence in CHC (now trading at 34c). This is down from $10 last year and gives CHC a market capitalisation of less than the cost of a pair of 225s. If you add in that the entire asset value of CHC is effectively spoken for in preferred debt held by CD&R then I would say the shares are overvalued by about....34c!!!

If the once mighty Humming Bird wants to be around at the end of next year then they must be either refinanced, go through a bankruptcy process, or a debt write off process. Why would any Oil and Gas company risk giving new business to CHC in its present difficulties?

My thoughts are with the guys facing job losses as this is a terrible time to be thrown on the beach. Like many others here I watch the jobs boards and have seen the number of new vacancies fall to almost zero. I guess that any new jobs are going by word of mouth at the moment. My advice would be to run for any government or state funded vacancy you can grab as these should be immune to the oil price fall.
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Old 4th Aug 2015, 16:35
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I here CHC has lost Marathon from 1st Sept due usual reasons
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Old 4th Aug 2015, 16:56
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Who got it Bristow or Bond?
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Old 4th Aug 2015, 17:01
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Bristow. Using EC225.
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Old 4th Aug 2015, 18:20
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My thoughts are with all those who are struggling at the moment - CHC, Bristows or Bond.

Max

The last 11 pages of this thread, unless you are reading a different thread, are speculation and opinion. As a pilot, I am sure you are trained to evaluate the facts in front of you, and not be distracted by chaff and flare.

There is no evidence on here that CHC's current contracts are dragging them down, or costing them money. They may be, but it's speculation, especially if you believe Terminus Mos who works for an oil company - so either he's speculating, repeating hearsey or knowingly awarded a contract knowing the winner would make a loss.... None of which are particularly professional.

Share price is something different.......

It's a sad blow for CHC losing Marathon but it's a competitive market and that's how it rolls.

All operators are suffering and this could easily be a Whats happening at Bristows or Bond thread.

None of the NS operators are laughing all th way to the bank at present, and idle speculation doesn't help those under the sword of Damocles in the North Sea
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Old 4th Aug 2015, 19:30
  #210 (permalink)  
 
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MGD,

Well said.


From where I'm standing, the first 15 seconds of this clip sums things up rather well:

https://www.youtube.com/watch?v=QnSDDXtd5qI
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Old 4th Aug 2015, 19:37
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There is no evidence on here that CHC's current contracts are dragging them down, or costing them money.
On what basis do you evaluate the above?

Share price is something different.......
Different from what?

idle speculation doesn't help
Where is the idle speculation?
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Old 5th Aug 2015, 03:03
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12 pages of thread, LOTS of opinions on highly complex financial matters (most of which are quite likely completely devoid of ANY actual truth).

Might one make a wee suggestion please? For those of you who, for whatever bizarre reason, feel you are somehow even remotely qualified to opine about what CHC's share price situation/overall situation actually represents, I challenge you to provide all of us here with proof of financial analysis credential and experience, or some other meaningful tool that somehow elevates you to the pedestal you are presently occupying.

What's that you say? You DON'T possess such credential? Ah ha, thought as much. Now go back to studying your RFM or this month's edition of FHM.
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Old 5th Aug 2015, 08:53
  #213 (permalink)  
 
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I challenge you to provide all of us here with proof of financial analysis credential and experience, or some other meaningful tool that somehow elevates you to the pedestal you are presently occupying.
Maybe you would be better served to ask the former management of this organization a similar question regarding the operation of a helicopter business, the factual result and outcome of which is the topic of this discussion!

The facts and analysis are freely available, and are far from being devoid of any truth are driving every aspect of the survival of this once great company.
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Old 5th Aug 2015, 10:25
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Tass I'll rise to it.

What credentials do you need? Should we get log books out, compare universities, club memberships, my dads in the SAS and drives the Indy 500 at weekends... come on.

For some reason very many can not get their heads around the stock price and the fundamental health of a business entity....which might include its contracts?

The stock is at 30cents... The last time I was told I was talking shite by Double Bogey, NWS and others the stock was at what? 48cents... before that it was almost 2 bucks. What do you think that data is telling you?

Is it telling you that things are absolutely super or not? You figure it out.

Don't take my word for it, just use the skill of reading and read this:-

http://ir.chc.ca/Cache/1500065945.PD...T=&iid=4293047

Go to slide 23.It shows year ended April 2013 & April 2014. So business from April 2012 to April 2014 if you will. Now I don't know how these contracts get priced BUT one might argue credibly that without a helicopter the business entity they label "Helicopter Services" isn't going to work. i.e. You might like to include the leasing costs or depreciation on the helicopters and associated kit?

If you agree with that statement and the need to ensure that your earnings in NOK, GBP, EUR, CAD or whatever can cover your costs in USD.....then what are you left with?

Well in those two years the Net Loss totals circa $290M and I can read that the totals that come under interest debt total circa $280M. So even if you scrap all of that debt at best (even when the oil price is at an average of over $100 a barrel) CHC just about washes its face.

If you read that differently then great - lets hear it.
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Old 5th Aug 2015, 11:11
  #215 (permalink)  
 
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Slide 5 is interesting!
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Old 5th Aug 2015, 11:34
  #216 (permalink)  
 
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Tass

I too will rise. You are absolutely correct in that I have no financial credentials to present. However.....

I have been flying for over 30 years. I don't build or maintain aircraft but I listen very carefully to those that do and I make informed decisions on that basis.

I have been an investor for over 25 years. I am not a financial analyst but I listen very carefully to those that are and I make informed decisions on that basis.
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Old 5th Aug 2015, 12:54
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MGD wrote

if you believe Terminus Mos who works for an oil company - so either he's speculating, repeating hearsey or knowingly awarded a contract knowing the winner would make a loss.... None of which are particularly professional.
I work for an oil company and I am a sometimes customer of CHC. I have only ever praised their people and systems.

I know the purchase, lease, running and overhead costs of helicopters from operator, OEM and customer perspectives. I should do after 30+ years.

I can run our internal evaluation pricing model and work out whether a contract is making a loss or a profit. Suggesting that we would knowingly sign a loss making contract is to fail to understand how to manage financial and business risk.
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Old 5th Aug 2015, 14:52
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Terminus

Excellent, If oil companies know the
purchase, lease, running and overhead costs of helicopters from operator, OEM and customer perspectives
and they never knowingly
sign a loss making contract
.... Just how is it that CHC is losing 0.4 billion dollars a year
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Old 5th Aug 2015, 15:05
  #219 (permalink)  
 
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Suggesting that we would knowingly sign a loss making contract is to fail to understand how to manage financial and business risk.
TM,


I don't doubt that - but please re-read read your sentence and have a quick irony check......
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Old 5th Aug 2015, 23:09
  #220 (permalink)  
 
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MGD

I said "we", I don't speak for others.

Tendering is expensive and time consuming. Our support contracts are long term with defined annual escalations. Financial portion of any pre award evaluation includes risk to both parties of entering into the contract. We can't be without our air or vessel services, a weak contractor is no use.

Max

CHC used to make a profit. What has changed? Too many spare aircraft leased maybe? The recent sale of 31 aircraft to Waypoint Leasing is interesting. They have to be paid for and they are not all contracted. From the presentation earlier, 37 x 332L, L1 and L2. Where are they all working? 58 x S-76. All working? 20x 365s? Not even all the 225s and S-92s are working.
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