HOUSTON - Bristow Group Inc. (NYSE: VTOL), a global leader in vertical flight solutions, has agreed to acquire 10 AW189 helicopters from Leonardo, with the option to purchase 10 additional aircraft. The new helicopters are slated to enhance Bristow's offshore transportation and search and rescue operations. Deliveries are scheduled to occur over three years, starting from 2025 through 2028.
This strategic expansion aims to bolster Bristow's service capabilities while aligning with its sustainability goals, as the AW189 helicopters are touted for their lower CO2 emissions compared to similar aircraft types. Moreover, these aircraft are anticipated to be compatible with Sustainable Aviation Fuels (SAFs) in the future, following certification standards already met by Leonardo.
Bristow President and CEO Chris Bradshaw highlighted the AW189's advantages, including lower operating costs than traditional heavy helicopters and the ability to meet the evolving needs of their customers. The company, which currently operates 21 AW189s worldwide with five more on order for delivery starting this year, also seeks to drive EBITDA growth through this fleet enhancement.
The company has previously consolidated its maintenance agreements with Leonardo into a 10-year support contract for its AW139 and AW189 fleets, which is expected to lower maintenance costs and provide more predictable cash flows.
Bristow's services extend beyond offshore energy, as it also provides government services with SAR-equipped AW189 helicopters. Notably, the company will commence SAR aviation services for the Irish Coast Guard in 2024, a contract awarded in 2023.
The information for this article is based on a press release statement from Bristow Group.
InvestingPro Insights
Bristow Group Inc.'s (NYSE: VTOL) recent move to expand its fleet with the acquisition of Leonardo's AW189 helicopters is a strategic step that aligns with the company's growth and sustainability objectives. As Bristow prepares for this expansion, insights from InvestingPro reveal important financial metrics and market sentiment that could influence investor perspectives.
According to the latest InvestingPro data, Bristow Group Inc. boasts a market capitalization of approximately $775.64 million. The company's P/E ratio stands at a lofty 256.36, although it has adjusted to a lower 165.06 over the last twelve months as of Q3 2023. This high earnings multiple, as highlighted in one of the InvestingPro Tips, indicates that the stock is trading at a premium based on its earnings, which may reflect investor confidence in the company's future profitability. This is further supported by the prediction from analysts that Bristow will be profitable this year, a significant factor considering the company's recent profitability over the last twelve months.
InvestingPro Tips also point out that Bristow operates with a significant debt burden, a factor that investors often weigh against the potential for revenue and earnings growth. On the positive side, the company's liquid assets exceed its short-term obligations, providing some financial flexibility. Additionally, Bristow does not pay a dividend, which suggests that it may be reinvesting earnings back into the company to fuel growth and operations, such as the recent fleet acquisition.
For investors looking for more in-depth analysis and additional tips, InvestingPro offers a wealth of information on Bristow Group Inc., including 6 more InvestingPro Tips available at https://www.investing.com/pro/VTOL. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to comprehensive company data and expert insights that could shape your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.