Offshore Logistics, Inc. Announces Earnings for the Fiscal Quarter Ended June 30, 1999
LAFAYETTE, La.--(BUSINESS WIRE)--Aug. 9, 1999--Offshore
Logistics, Inc. (NASDAQ: OLOG), a supplier of aviation and
production management services to the oil and gas industry, today
reported gross revenues for the first quarter ended June 30, 1999, of
$107.4 million compared to $117.6 million reported for the same period
of the prior year. Net income was $3.1 million ($0.15 per share -
diluted) for the quarter compared to $6.6 million ($0.29 per share -
diluted) for the same quarter last year.
George Small, President of Offshore Logistics, said, "Our
activities and results for the first quarter of fiscal 2000 continued
to be adversely affected by reduced demand for our services in most of
our areas of operation. The focus by many of our customers continues
to be to reduce their exploration activities and trim production
costs, despite the improvement in oil and gas commodity prices
experienced during the quarter. We have seen a slight improvement in
demand for our services in the Gulf of Mexico in late June and July of
1999. We are hopeful that this trend will continue and that it will
transfer to our other markets around the world during subsequent periods.
"Air Logistics' Gulf of Mexico flight hours increased during the
June quarter by 9.2% from the March quarter of 1999 but was still 8.5%
below the same quarter in the prior year. This increase in flight
activity did not result in an increase in revenue from the March 1999
quarter due to a higher mix of smaller aircraft flying under contract.
Revenue was down 18% from the same period in the prior year. Pricing
for our services in the Gulf of Mexico continues to remain firm. We
have continued to monitor our Gulf of Mexico operating costs during
these weak market conditions which has limited the erosion of
operating margins.
"Bristow's North Sea flight revenues increased slightly from the
March 1999 quarter with improved seasonal operating conditions, but
they continue to experience the negative impact of the sustained low
oil and gas commodity prices. Revenues continue to be adversely
affected by both reduced utilization and pricing pressures in the
North Sea market. Effective August 1, 1999, contracts with two major
customers in the North Sea will cease. These contracts represented
approximately $37 million of annual revenue during fiscal year 1999.
In recognition of these contract losses, Bristow will announce
significant staff reductions during the second fiscal quarter.
However, it is likely that Bristow's results and operating margins
will be adversely affected for some time while we continue to review
all activities with a view toward further cost realignment.
"GPM completed another sound quarter with positive results. GPM
is firmly positioned to participate in the growth related to
outsourcing of services by oil companies trying to reduce production
costs."
At June 30, 1999, the Company's consolidated balance sheet
reflected $280.7 million in shareholders' investment, $83.8 million in
cash and $239.6 million of indebtedness.
OLOG will conduct a telephonic conference to discuss its
first-quarter with analysts, investors and other interested parties at
10 a.m. CDT on Tuesday, August 10, 1999. Those interested in
participating in that teleconference should call 800/550-7368
(212/271-4740, if outside the U.S.) just prior to the scheduled start
and ask for the Offshore Logistics, Inc. conference call. A replay
will be available immediately following the teleconference. To hear
that recording, call 800/633-8284 (619/812-6440, if outside the U.S.).
Enter reservation number 12916138. This replay will be available for
forty-eight hours following the conference call. |
