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CHC announces contract renewal at higher rates
ST. JOHN'S, NF, May 29 /PRNewswire/ - CHC Helicopter Corporation (``CHC'') (TSE: FLY.A - news and FLY.B - news;
NASDAQ: FLYA - news) announced today that its operating division CHC Helikopter Service has won a five-year contract
renewal for helicopter support out of Kristiansund in Norway at higher rates.
This contract was awarded by Statoil on behalf of itself, Norsk Hydro and Norske Shell. Annual revenue will be approximately
NOK 160 million (CDN $27 million). The contract is for three years with two one-year options and commences July 1, 2001. Last
year the contract produced revenue of approximately NOK 110 million (CDN $19 million) from these aircraft at similar flying
hours.
The Kristiansund contract will provide crew change work for the three aircraft currently operated by CHC out of Kristiansund -
two Super Puma Mk 2 and one Super Puma. For CHC, the contract represents a renewal of the strategically important offshore
support business on the Norwegian continental shelf. The CHC base in Kristiansund supports the Draugen, Heidrun, Njord and
Asgard fields as well as exploration rigs in the region.
Statoil recently decided to extend the existing contract with CHC in Bronnoysund, Norway for a single Super Puma helicopter at
existing contracted rates. Valued at approximately NOK 25 million (CDN $4.3 million), the one- year extension is due to expire on
May 1, 2002, at which time the contract will not be renewed. We have identified a use for the aircraft on expiry of the
Bronnoysund contract.
CHC Helicopter Corporation, through its subsidiaries and investments, is a leading provider of helicopter transportation services to
the oil and gas industry, with a combined fleet of more than 300 light, medium and heavy aircraft operating in 21 countries, and
approximately 2,500 employees worldwide.
This press release may contain projections and other forward-looking statements within the meaning of the ``safe harbour''
provision of the United States Private Securities Litigation Reform Act of 1995. While these projections and other statements
represent our best current judgement, they are subject to risks and uncertainties that could cause actual results to vary. These
statements may involve risks and uncertainties including, but not limited to factors detailed in CHC's Annual Report on Form 20-F
and other filings with the United States SEC. Should one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual outcomes may vary materially from those indicated.
SOURCE: CHC Helicopter Corporation |
