What's happening in CHC?
Join Date: Nov 2004
Location: USA
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Share price this evening is only 17 cents, so that 30/1 reverse split is barely going to achieve $5.00 per share.
Looks scarily close to $1 still, especially seeing that the present shares have lost close to 80% of their value since that blip of optimism a few months ago.
Looks scarily close to $1 still, especially seeing that the present shares have lost close to 80% of their value since that blip of optimism a few months ago.
A few things going on here:
1. all the oil service companies continue to look like dogs with fleas because of the oil price and hugely reduced capex by the oil companies.
2. Of those companies, those performing well and profitably are still getting slaughtered, those performing badly financially are getting slapped even more. The CHC results, while not unexpected, are not great.
3. As noted on many occasions, the ownership structure (over 85% of the shares are held by 2 companies) of CHC makes it a very unappealing investment and prone to price volatility.
4. The size of current market cap and the fact that it is in breach of NYSE rules mean many institutions will be barred from investing in it, or if they were invested, will have to divest. While there remains very little demand, any increase in the supply of shares from divestment will be taken into account by the market and the price drops more.
1. all the oil service companies continue to look like dogs with fleas because of the oil price and hugely reduced capex by the oil companies.
2. Of those companies, those performing well and profitably are still getting slaughtered, those performing badly financially are getting slapped even more. The CHC results, while not unexpected, are not great.
3. As noted on many occasions, the ownership structure (over 85% of the shares are held by 2 companies) of CHC makes it a very unappealing investment and prone to price volatility.
4. The size of current market cap and the fact that it is in breach of NYSE rules mean many institutions will be barred from investing in it, or if they were invested, will have to divest. While there remains very little demand, any increase in the supply of shares from divestment will be taken into account by the market and the price drops more.
Join Date: Aug 2004
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CHC / H1 outlook for 2016
What a shame that such a once great company is still going down day by day. The fundamental problems with the company started long before the price of oil took a nose dive so if you're an investor, you should do your homework. So the recovery will probably never happen as the company stands right now. This is really depressing for many old timers.
You need to look into the history of the company, originally based in BC, and understand that when Mr. Dobbin Senior unfortunately passed away, there were "local" seized wing companies like AVEOS and Air Canada laying off people in droves with absolutely zero helicopter background applying for jobs. CHC / H1 actually hired some in key positions. This pretty much started the ball rolling. No one thought much about it at the time, since these new employees had degrees and an "Aviation" background, except for those with many years with nothing but helicopter operations. Slowly but surely, the helicopter experienced management was led down the garden path or forced to quit to make room for all the friends of the newly hired. The trouble with the airline management mentality is that it seldom works in the helicopter world. To this day, a few of them have now been let go, but it looks as if there remains a large group that tells the new upper management what they want to hear.
Until these people are fired for their incompetence, not much will change. but even if they did figure it out now, with oil prices staying so low, I'm not so sure things will turn around.
I do wish the new management the best of luck. They are going to need it. CHC/H1 crews deserve much better than what they have had to endure for years. They crews are truly very good.
You need to look into the history of the company, originally based in BC, and understand that when Mr. Dobbin Senior unfortunately passed away, there were "local" seized wing companies like AVEOS and Air Canada laying off people in droves with absolutely zero helicopter background applying for jobs. CHC / H1 actually hired some in key positions. This pretty much started the ball rolling. No one thought much about it at the time, since these new employees had degrees and an "Aviation" background, except for those with many years with nothing but helicopter operations. Slowly but surely, the helicopter experienced management was led down the garden path or forced to quit to make room for all the friends of the newly hired. The trouble with the airline management mentality is that it seldom works in the helicopter world. To this day, a few of them have now been let go, but it looks as if there remains a large group that tells the new upper management what they want to hear.
Until these people are fired for their incompetence, not much will change. but even if they did figure it out now, with oil prices staying so low, I'm not so sure things will turn around.
I do wish the new management the best of luck. They are going to need it. CHC/H1 crews deserve much better than what they have had to endure for years. They crews are truly very good.
Join Date: Jul 2007
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Sad, ain't it?
I worked for Okanagan Helicopters (precursor to CHC) back in the 1970's and '80's. We were a diversified VFR and IFR company with operations worldwide. We were pretty good at what we did and made good money doing it. I reckon there weren't 10 people in management with university degrees but we could do at least do basic math.
It was when the company was sold to John Lecky that we starting getting the MBA types with no aviation background.
Craig Dobin was after my time but I understand he brought back good helicopter management. Sadly, after Craig's death it was straight downhill.
The Okanagan/CHC story would make an interesting biz school case study on how to really screw things up.
Merry Christmas all
It was when the company was sold to John Lecky that we starting getting the MBA types with no aviation background.
Craig Dobin was after my time but I understand he brought back good helicopter management. Sadly, after Craig's death it was straight downhill.
The Okanagan/CHC story would make an interesting biz school case study on how to really screw things up.
Merry Christmas all
Join Date: Jan 2007
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I think if you compared this graph with Bristow share graph it will look very similar. They have dropped a lot in the last year and a bit to. I understand they are still trading much higher then CHC but they have also lost a lot of value. Just shows the state our industry is in.
When the IPO for CHC started Bristow was at close to $80 and a market cap of 2.2 billion. last week they were down to just over 16 dollars and a market cap of 700 million.
CHC shares were down at one point to 20 cents before the reverse split now at $4.00 so maybe can go down quite a bit more again. Not sure how many reverse splits a company can do?
When the IPO for CHC started Bristow was at close to $80 and a market cap of 2.2 billion. last week they were down to just over 16 dollars and a market cap of 700 million.
CHC shares were down at one point to 20 cents before the reverse split now at $4.00 so maybe can go down quite a bit more again. Not sure how many reverse splits a company can do?
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roundwego:
I truly hope you are right. Until the oil industry turns around I feel we are still in very uncertain times. The share price of all the helicopter companies who work in the off shore business will stay down for some time to come is my thinking.
Is not very comforting to work for a company for over 30 years and wonder if I will still have a job next month.
I truly hope you are right. Until the oil industry turns around I feel we are still in very uncertain times. The share price of all the helicopter companies who work in the off shore business will stay down for some time to come is my thinking.
Is not very comforting to work for a company for over 30 years and wonder if I will still have a job next month.
Join Date: Aug 2003
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As you no doubt already gathered companies such as this don't care how long you have served, you are simply a source of revenue and when that source is no longer there, neither are you....case of thanks for your time, caio🖐
How much further down can the share price go?
CHC is all about crude oil, if that wasn't obvious from the beginning. Sadly some preferred to get their log books out and missed the main theme.
Pitts is right but....
If the stock price is related to the oil price, then by default it should rise if the oil price rises.
On TV now is the Russian Energy minister saying that next month the OPEC countries and Russia are having a get together to talk about a co-ordinated 5% cut in output. And low and behold Brent crude is up 4% and so is CHC.
use the 'Add Comparsion' function on Bloomberg to see exactly how HELI is performing vs other stocks in the sector. The valuation is still in the toilet but it's not faring significantly worse than a lot of it's peers, it was just starting from a lower base!
HELI:New York Stock Quote - CHC Group Ltd - Bloomberg Markets
If the stock price is related to the oil price, then by default it should rise if the oil price rises.
On TV now is the Russian Energy minister saying that next month the OPEC countries and Russia are having a get together to talk about a co-ordinated 5% cut in output. And low and behold Brent crude is up 4% and so is CHC.
use the 'Add Comparsion' function on Bloomberg to see exactly how HELI is performing vs other stocks in the sector. The valuation is still in the toilet but it's not faring significantly worse than a lot of it's peers, it was just starting from a lower base!
HELI:New York Stock Quote - CHC Group Ltd - Bloomberg Markets
Join Date: Jul 2006
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As are the AS 332L pilots and engineers on the now finished Romania contract, the 139 pilots in Miri,the last remaining pilots from Mozambique, a few from Nigeria and soon the L2 crews on the Gabon/Turkey contract which only has days to go..sad to see such wholesale reductions done in a less than fair manner..
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With Gabon/Turkey you mean the 2x 332 for the Shell Noble Globetrotter 2?
I thought the Shell - CHC contract was according the same lines as the Shell - Noble contract 5 years + 5× 1 year options starting 2013?
Now i know that Shell has a habbit of changing helicopter provider but the Noble contract seemed pretty solid.
Noble took over Frontier for their 3 rig contracts with Shell and at same time closed the long term deal for the two Globetrotter newbuilds.
Recently 1 of the 5 contracts has been cancelled (the artic rig Discoverer) but Shell paid 90% of the remaining contract price..
So i guess and hope that CHC can keep this contract or at least another helicopter provider can bring in their crews.
SLB
I thought the Shell - CHC contract was according the same lines as the Shell - Noble contract 5 years + 5× 1 year options starting 2013?
Now i know that Shell has a habbit of changing helicopter provider but the Noble contract seemed pretty solid.
Noble took over Frontier for their 3 rig contracts with Shell and at same time closed the long term deal for the two Globetrotter newbuilds.
Recently 1 of the 5 contracts has been cancelled (the artic rig Discoverer) but Shell paid 90% of the remaining contract price..
So i guess and hope that CHC can keep this contract or at least another helicopter provider can bring in their crews.
SLB
Now i know that Shell has a habbit of changing helicopter provider but the Noble contract seemed pretty solid
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Has Shell terminated CHC in Australia until the Prelude FLNG arrives?
I thought there was a FULL SAR EC225 with medical crews etc in Australia provided for community use by Shell? It must be expensive if Shell still has it.
I thought there was a FULL SAR EC225 with medical crews etc in Australia provided for community use by Shell? It must be expensive if Shell still has it.
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Is The Fat Lady Starting to Sing?
That press release has an old POS S-76A on it, not even the current paint colours.
Is this the beginning of the end?
'Congratulations' to all who engineered this outcome.
Is this the beginning of the end?
'Congratulations' to all who engineered this outcome.
