HNZ Group have reported their first quarter numbers covering January to March 2016, with revenue up 26.6% from $36.5M to $46.2M in the comparative quarter last year. The company has seen increased revenue from all three business segments, despite flying hours being down 6.49% from 7025 to 6569 hours.
The prime reason for the jump of $9.7M turnover was a $6.4M increase from offshore operations with the Shell Canada offshore support contract in Halifax and the acquisition of Norsk Helikcopter Service. Southeast Asia business also increased while New Zealand offshore activity was down. The Shell Canada operations account for three S-92s acquired from PHi, while the Norsk purchase brought in one S-92.
Ancillary revenue increased by $2.1 million primarily due to increased activity at Nampa Valley and HNZ Topflight. Finally, onshore revenues increased by $1.2 million as a result of the new North Warning System contract (NWS), partially offset by reductions in utility flying in Canada and Antarctica.
“Our first quarter results reflect the benefit of the Shell offshore support contract in Nova Scotia, the U.S. Department of Defense North Warning System contract and the execution of ongoing cost control measures,” said Don Wall, President and CEO of HNZ Group. “While the quarter was positive, the overall context in the oil and gas and other resource sectors remains difficult with little sign of short-term improvement. We continue to maintain a solid financial position with cash and cash equivalents net of debt of $5.6 million.”
As at March 31, 2016, the Corporation’s financial position is strong with working capital of $48.0 million, and cash and cash equivalents, net of bank indebtedness of $11.5 million, combined with an operating credit facility drawdown of $5.9 million.
In March, HNZ was involved in the creation of Acasta HeliFlight Inc. (“Acasta”). Acasta is based in Yellowknife, NWT and will provide specialized Northern Canadian VFR helicopter transportation services across all sectors of the regional economy. Acasta will be primarily under the leadership of President Adam Bembridge, a local aviation executive with experience in the North and a recognized pioneer in the area of building mutually beneficial alliances with Northern Aboriginal organizations.
Jeremy Parkin – HeliHub.com
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