What's happening in CHC?
Join Date: Aug 2003
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I am not worried about my job
with the scale of CHC who only work offshore.
Outwest, CHC 230 ish ac, less than 15 doing onshore in Aus. No one is doubting that they do good work and perform vital services etc.
But EMS is not core business right now. I'm not judging anyone, but that's like saying offshore is core for Inaer, the numbers don't lie. The Amelio years were all about the focus offshore.
Is that a strategic mistake? Quite possibly, the lack of diversified services mean the bad times are worse.
But EMS is not core business right now. I'm not judging anyone, but that's like saying offshore is core for Inaer, the numbers don't lie. The Amelio years were all about the focus offshore.
Is that a strategic mistake? Quite possibly, the lack of diversified services mean the bad times are worse.
Join Date: Aug 2013
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Mitchaa, check your figures. I think Bristow will have well over 50% from May 2017. Brønnøy and Kristiansund are not big bases or big contracts. Bristow will be employing approx twice as many pilots in Norway by 2017. They will have Stavanger, Bergen, Florø, as main bases. CHC is left with a small contingent in sola and Kristiansund and 1 aircraft in Brønnøy. Logistics costs for chc will be even more of a challenge for the offshore based contracts now without bergen.
Join Date: Jan 2002
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I've been watching this thread for a while. I suspect that one of the reasons you can make a small fortune in aviation (having started with a large one!) is the way in which some people in aviation have a an interesting view of business.
Mitchaa has fixated on revenue. Which in the grand scheme of things is not even half the equation. The scary thing is that some of the management team are saying things like;
"
Over the next 2 to 4 years there will be virtually NO investment in deep and ultra deep discovery and production by the oil majors - so scratch that revenue stream.
However to be fair the management are controlling costs. The quarterly losses (NOT revenue) are creditably no greater in 2014 than 2013 and given the pressure on contracts that is creditable. And between 2015 and 2016 the year to date loss figures reduced slightly (around 15% to $54M).
But this is a business which has been losing money for over 3 years (as far back as I could be bothered to look). Which of course is why the share price is rock bottom. Putting money into CHC shares simply means you lose it.
Substantial restructuring, Chapter 11, walking away from leased and idle aircraft, unwanted aircrew - that would be a pretty obvious 'fix'. The management team have a real job on their hands and I wish them every success - I have friends who work for CHC! But it is taking quite some time and the money is running out.
Mitchaa has fixated on revenue. Which in the grand scheme of things is not even half the equation. The scary thing is that some of the management team are saying things like;
"
William Amelio, CHC president and chief executive officer:
“Long-term trends for oil-and-gas investments in deep and ultra-deep discovery and production – where the need for our services is greatest – remain robust. We are pursuing our financial priorities by focusing on disciplined capital allocation, reduced leverage and positive free cash flow – with safety leadership in the air and on the ground.”
Joan Hooper, CHC chief financial officer:
“The changes we are making to CHC are further enhancing safety, service and efficiency. We are applying the same resolve to financial discipline as we do to operating standards. Our financial priorities – profitable growth, expanding adjusted EBITDAR margins and strengthening the balance sheet – are guiding all of our decisions and actions.”
“Long-term trends for oil-and-gas investments in deep and ultra-deep discovery and production – where the need for our services is greatest – remain robust. We are pursuing our financial priorities by focusing on disciplined capital allocation, reduced leverage and positive free cash flow – with safety leadership in the air and on the ground.”
Joan Hooper, CHC chief financial officer:
“The changes we are making to CHC are further enhancing safety, service and efficiency. We are applying the same resolve to financial discipline as we do to operating standards. Our financial priorities – profitable growth, expanding adjusted EBITDAR margins and strengthening the balance sheet – are guiding all of our decisions and actions.”
However to be fair the management are controlling costs. The quarterly losses (NOT revenue) are creditably no greater in 2014 than 2013 and given the pressure on contracts that is creditable. And between 2015 and 2016 the year to date loss figures reduced slightly (around 15% to $54M).
But this is a business which has been losing money for over 3 years (as far back as I could be bothered to look). Which of course is why the share price is rock bottom. Putting money into CHC shares simply means you lose it.
Substantial restructuring, Chapter 11, walking away from leased and idle aircraft, unwanted aircrew - that would be a pretty obvious 'fix'. The management team have a real job on their hands and I wish them every success - I have friends who work for CHC! But it is taking quite some time and the money is running out.
Join Date: Aug 2013
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Helioil beat me to it.
Mitchaa don't forget in the last 3 years CHC lost several other non-statoil contracts too including Ekofisk sar which they had held for a very long time.
Mitchaa don't forget in the last 3 years CHC lost several other non-statoil contracts too including Ekofisk sar which they had held for a very long time.
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so not really much use to the CHC pilots who are losing their jobs left right and centre, some of them after over 30yrs in the company. Nice to know the company will still be called CHC but with local pilots. They'll use medium helicopters to transport cargo instead of trucks? CHC pilots havent been doing much load lifting for years and the skills the pilots once had just arent available immediately.
Join Date: Oct 2012
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They call themselves Canadian (or maybe the reporter didn't do enough [any] research) because it is more politically palatable than "American company".
And reading the press release, the nationalization plan as written is identical to every other location they have gone. So lots of work if it goes ahead.
And reading the press release, the nationalization plan as written is identical to every other location they have gone. So lots of work if it goes ahead.
I bet a local Omani pilot is tons cheaper than employing 2 expats (b2b model).
CHC's union have not done them any favours on the work front by getting huge pay rises in a falling market. CHC keep losing on price.
No work will take place in the Middle East without at least an appearance of training local staff. Gone are the days of bowling up for 5 year production contracts and leaving at the end with nothing to show for the local economy. I have no problems with that. The world does not owe only middle class white guys a living at the expense of locals.
CHC's union have not done them any favours on the work front by getting huge pay rises in a falling market. CHC keep losing on price.
No work will take place in the Middle East without at least an appearance of training local staff. Gone are the days of bowling up for 5 year production contracts and leaving at the end with nothing to show for the local economy. I have no problems with that. The world does not owe only middle class white guys a living at the expense of locals.
PS HeliMutt, the skills are available from ex military pilots in minutes if you really wanted them. Just add refreshed procedures from Operating Manuals which already exist and bang - credible solution. Finding pilots with the right experience in this market is not hard.
I wonder why they're now calling themselves a "Canadian" company? Hasn't been the case for at least 5 years, or have I missed something?
Believe the pitch is being made by CHC Helicopters Canada. It's AOC is in Canada and 51% of this non-public firm is owned by Sylvan A (I think....)
Believe the pitch is being made by CHC Helicopters Canada. It's AOC is in Canada and 51% of this non-public firm is owned by Sylvan A (I think....)
wonder why the Cayman islands became the destination of choice for their AOC at one point? Even to the point of issuing Cayman licences?
Nowherespecial: I'm well aware there are military pilots with load lifting experience, and no, I wouldnt be at all surprised if CHC sacked pilots and brought in other pilots to do the job. Wouldnt be the first time. The Union didn't help matters. Coming up with a very weak collective agreement for the Global Pilots. Pay rises aside, the union agreement was, and still is, treated with contempt by chc. Believe me I know this for a fact.
Nowherespecial: I'm well aware there are military pilots with load lifting experience, and no, I wouldnt be at all surprised if CHC sacked pilots and brought in other pilots to do the job. Wouldnt be the first time. The Union didn't help matters. Coming up with a very weak collective agreement for the Global Pilots. Pay rises aside, the union agreement was, and still is, treated with contempt by chc. Believe me I know this for a fact.
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I see that the CHC share price has made a spectacular debut on the OTC stock exchange, losing half of its value in the first week of trading. Closed this Friday at $1.55 (or 5cents using the pre reverse split price).
Down 97.76% over the last year.
The entire public traded stock in CHC can now be yours for the price of an old S76C+ ($4.1 million).
Any takers?......
What nobody?......
Really?..........
Down 97.76% over the last year.
The entire public traded stock in CHC can now be yours for the price of an old S76C+ ($4.1 million).
Any takers?......
What nobody?......
Really?..........
