HOUSTON - Bristow Group Inc. (NYSE: VTOL), a global provider of vertical flight solutions, announced a new financial arrangement through its UK subsidiary, Bristow Leasing Limited. The company has secured a €100 million term-loan facility, backed by UK Export Finance (UKEF), with National Westminster Bank Plc (NatWest) acting as the original lender. This financing is earmarked for capital commitments associated with the enhancement of search and rescue (SAR) operations in Ireland.
UKEF, the UK's export credit agency, extends its Export Development Guarantee to support the working capital and capital expenditure needs of UK exporters that satisfy specific criteria. Bristow's President and CEO, Chris Bradshaw, expressed gratitude towards NatWest and UKEF for their support, which he believes will bolster the company's financial flexibility as it expands its government services business.
The loan facility, guaranteed for 80% by UKEF, will be secured against five new Leonardo AW189 helicopters, specially configured for SAR missions. It features a two-year availability period, followed by a five-year term, with interest rates set at the Euro Interbank Offered Rate (EURIBOR) plus 1.95% per annum. The funding is anticipated to be received within 2024, contingent upon the delivery of the new helicopters.
Bristow Group is recognized for providing aviation services, including personnel transportation, SAR, and various other helicopter services, to a wide array of offshore energy companies and government entities. The company operates across multiple countries and regions, serving a diverse customer base.
The press release also contains forward-looking statements subject to significant risks and uncertainties. It cautions investors not to place undue reliance on these statements, which reflect the company's views only as of the date of the release. Bristow Group disclaims any obligation to update these forward-looking statements unless required by law.
This financial development is based on a press release statement from Bristow Group Inc. and is intended for informational purposes. It does not constitute an endorsement of the company's claims or financial strategies.
In other recent news, Bristow Group Inc. has reported a strong first quarter in 2024, outperforming expectations due to new contracts in Norway and Brazil. The company affirms its full-year guidance for 2024 and projects significant growth for 2025 and 2026.
Bristow also anticipates a compound annual growth rate in adjusted EBITDA of over 22% from 2022 to 2026. The company's optimistic outlook extends to the Offshore Energy Services and Government Services sectors, expecting a multiyear growth cycle and strong demand respectively.
Bristow has a contractual backlog of $4.2 billion and plans to reset rates to current market conditions as legacy contracts expire. The company has also announced orders for new helicopters, which are expected to drive EBITDA growth. Bristow remains confident in maintaining positive activity levels for the next 2-3 years and plans to use excess cash in 2025 and beyond for potential shareholder returns.
The company acknowledges risks in contract renewals with customers potentially opting for lower-cost operators. Still, Bristow is awarded large contracts in the UK and Ireland, which require significant investments that promise attractive long-term cash flow yields.
The company is also excited about the prospects and partnerships in the Advanced Air Mobility (AAM) sector, with expectations to incorporate AAM technology into their fleet by the end of 2025 or early 2026.
InvestingPro Insights
As Bristow Group Inc. (NYSE: VTOL) secures a new financial lifeline to enhance its search and rescue operations, the company's financial health and market performance offer insights into its future prospects. With a market capitalization of 955.99 million USD, Bristow is a significant player in the vertical flight solutions arena. The company's commitment to expanding its government services business is underscored by its recent move to secure capital for new SAR helicopters.
An InvestingPro Tip indicates that Bristow operates with a significant debt burden, which investors should consider when evaluating the company's financial arrangement. On the positive side, analysts predict that Bristow will be profitable this year, and the company has already been profitable over the last twelve months. This suggests a potential for a return on the new investment in SAR capabilities. Additionally, the company's liquid assets exceed its short-term obligations, providing a buffer for its capital commitments.
InvestingPro Data shows that Bristow is trading at a high earnings multiple, with a P/E ratio of 707.29, adjusted to 185.63 for the last twelve months as of Q1 2024. The company has experienced a 9.23% revenue growth over the same period, indicating its ability to increase earnings. Moreover, Bristow has seen a strong return over the last three months, with a 30.04% price total return, and an even more impressive 35.61% price total return over the last six months.
For investors looking to delve deeper into Bristow's financials and market performance, InvestingPro offers additional insights. There are more InvestingPro Tips available that could further inform investment decisions, including analysis on the company's earnings multiples and profitability forecasts. Interested readers can find these tips and more at https://www.investing.com/pro/VTOL. To access this valuable information, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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