Go Back  PPRuNe Forums > Aircrew Forums > Rotorheads
Reload this Page >

NHV catch a cold

Rotorheads A haven for helicopter professionals to discuss the things that affect them

NHV catch a cold

Old 23rd Apr 2019, 17:25
  #1 (permalink)  
Thread Starter
 
Join Date: Dec 2009
Location: Moo moo land
Posts: 279
NHV catch a cold

So the yellow dream is over. NHV post a 1.8 million euro loss. The CEO is moved on and to top it all issue a warning that the business might be unsustainable.
So you do actually have to make money when you bid on a contract who would have thought.
At least they are acting fast or maybe they donít have the cash reserve bristow have?

any thoughts
lowfat is offline  
Old 23rd Apr 2019, 18:02
  #2 (permalink)  
 
Join Date: Dec 2007
Location: UK
Posts: 265
The oil companies won't be happy until all operators are bankrupt.

have you seen the effort it takes to make such a loss
helicrazi is offline  
Old 23rd Apr 2019, 19:59
  #3 (permalink)  
 
Join Date: Jun 2014
Location: Netherlands
Age: 49
Posts: 1,196
Being a company with revenue in the range of 250-300 million Euro.
The 1.8 million loss is small.
The big question is if the decline in profit is temporary or structural and growing or already under control.
Self loading bear is online now  
Old 23rd Apr 2019, 20:16
  #4 (permalink)  
 
Join Date: Dec 2007
Location: UK
Posts: 265
Turning over 300m and making a loss sounds embarrassing to me
helicrazi is offline  
Old 23rd Apr 2019, 21:13
  #5 (permalink)  
Thread Starter
 
Join Date: Dec 2009
Location: Moo moo land
Posts: 279
while the loss is relatively small especially compared to the hundreds of millions of dollars bristow has lost .

The statement that the business might be unsustainable in the long term shocked me.


lowfat is offline  
Old 23rd Apr 2019, 21:53
  #6 (permalink)  
 
Join Date: Oct 1999
Location: Nigeria
Age: 53
Posts: 4,516
Originally Posted by helicrazi View Post
The oil companies won't be happy until all operators are bankrupt.

have you seen the effort it takes to make such a loss
Not sure how well you understand O&G operations from the IOC perspective, but that is the absolute last scenario they want! In fact itís regarded as the biggest risk to business continuity
212man is online now  
Old 23rd Apr 2019, 22:18
  #7 (permalink)  
 
Join Date: Mar 2007
Location: UK
Posts: 82
Not sure how well you understand O&G operations from the IOC perspective, but that is the absolute last scenario they want! In fact it’s regarded as the biggest risk to business continuity
if that is so; then perhaps the oil companies should put their hand in their pocket before there are no helicopter operators left.
P3 Bellows is offline  
Old 23rd Apr 2019, 22:27
  #8 (permalink)  
 
Join Date: Jun 2014
Location: Netherlands
Age: 49
Posts: 1,196
Does somebody have a link where we can find this info?
I found the CEO change on LinkedIn but nothing else
Self loading bear is online now  
Old 23rd Apr 2019, 22:36
  #9 (permalink)  
 
Join Date: Jun 2014
Location: Netherlands
Age: 49
Posts: 1,196
Does somebody have a link where we can find this info?
I found the CEO change on LinkedIn but nothing else
Self loading bear is online now  
Old 24th Apr 2019, 00:30
  #10 (permalink)  
 
Join Date: Oct 2002
Location: All over the place
Posts: 197

I have never yet seen a loss reported that wasn't the best case scenario drawing in every receivable and deferring every payable to make it the best looking number possible. The only exception would be an unrecoverable quarter or year, where you just chuck everything in, hoping it's an anomaly and the next quarter will be better.The fact the CEO is gone and the warning about the sustainability of the business implies there may be more to the story. Babcock and Bristow have both made similar comments about the market conditions in the North Sea.

A bad market and competitive pricing to remain in business is one thing, but to all drive yourselves into bankruptcy is another. I hope their Customers are all paying close attention to the situation.
rotor-rooter is offline  
Old 24th Apr 2019, 08:46
  #11 (permalink)  
 
Join Date: Dec 2000
Location: uk
Posts: 208
Originally Posted by Self loading bear View Post
Does somebody have a link where we can find this info?
I found the CEO change on LinkedIn but nothing else
SLB click on this link and then download full accounts: https://beta.companieshouse.gov.uk/c...filing-history
It is just for NHV UK, not the whole NHV group.
finalchecksplease is online now  
Old 24th Apr 2019, 12:35
  #12 (permalink)  
 
Join Date: Jun 2006
Location: In the air with luck
Posts: 993
In the Full accounts made up to 31 December 2018 Page 5 has the relevant bit.
Looks like the parent Co could have to help the UK subsidiary
500e is offline  
Old 24th Apr 2019, 14:53
  #13 (permalink)  
 
Join Date: Jan 2010
Location: UK
Posts: 499
Is this being taken out of context? If you look at Google, Starbucks, Amazon etc, they all make very little, if any, UK profit on paper due to the way they play the various tax laws - eg by the UK subsidiary paying the parent company a "licence fee" to use the brand name in the UK.

Taking the accounts of a single subsidiary of a larger group could be as useful as a chocolate teapot.
helihub is offline  
Old 24th Apr 2019, 16:53
  #14 (permalink)  
HHE
 
Join Date: Feb 2009
Location: Ghent
Age: 43
Posts: 14
Annual reports of NHV group can be found here;

https://www.nbb.be/en/central-balance-sheet-office

latest filing is of fiscal year 2017. 2018 will probably be filed somewhere late May/early June.

The reports are interesting reading material because you can also find management statements and views on the market.

cheers
HHE is offline  
Old 24th Apr 2019, 17:32
  #15 (permalink)  
 
Join Date: Dec 2007
Location: UK
Posts: 265
Originally Posted by 212man View Post

Not sure how well you understand O&G operations from the IOC perspective, but that is the absolute last scenario they want! In fact itís regarded as the biggest risk to business continuity
sorry my sarcasm didn't come across. I am well aware of the risk to business continuity, however it hasn't changed the fact loss making contracts are still being awarded.
helicrazi is offline  
Old 24th Apr 2019, 18:04
  #16 (permalink)  
 
Join Date: Sep 2006
Location: Inside the Industry
Posts: 750
Crazi

sorry my sarcasm didn't come across. I am well aware of the risk to business continuity, however it hasn't changed the fact loss making contracts are still being awarded.
IOCs don't have insight into all of a helicopter operators' costs. When selecting a successful tenderer, providing bids meet the safety and technical requirements, its natural that an IOC will select the lowest cost option from the submitted responses.

It seems to be a popular view that oil companies are always villainous in selecting the most competitive tender and should somehow volunteer to pay helicopter companies extra to compensate for their own poor business decisions.

Much of the current industry malaise among helicopter companies is as a result of their taking advantage of aircraft lease deals which appeared cheap at the time with little or no thought as to what may happen if there was an industry downturn. So large was the capacity increase caused by abundant lease deals that when the downturn came, even the grounding of the complete 225 offshore fleet didn't cause a shortage of aircraft.
industry insider is offline  
Old 24th Apr 2019, 18:47
  #17 (permalink)  
 
Join Date: Dec 2007
Location: UK
Posts: 265
And yet they are still driving down costs
helicrazi is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Thread Tools
Search this Thread

Contact Us Archive Advertising Cookie Policy Privacy Statement Terms of Service

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.