Bristow Group Inc (NYSE:BRS) Shares Draw Support from Latest Earnings Data


Bristow Group Inc (NYSE:BRS) shares are up 12.62% on Monday to $12.94, building on positive momentum from the company’s earnings report.

Bristow Group Inc (NYSE:BRS) shares are trading in a 52-week range of $10.81 to $60.84, indicating that there’s significant room to climb before reaching the top of its yearly range. The company has a market cap of $509.35 million at roughly 34.98 million shares outstanding.

In its latest earnings report, the company reported a 20.2% increase in liquidity from the previous reporting period to $359.7 million as of March 31, 2016. The March 2016 quarter also saw an operating cash flow of $60.3 million, representing an increase of $62.9 million over the December 2015 quarter.  Even though Bristow Group Inc (NYSE:BRS) was hurt by declining energy prices during the first quarter of the year, the company was able to make up for this by diversifying its business.

In fact, the increase in operating revenue for the March 2016 quarter was mostly attributed to the startup of seven U.K. SAR bases during fiscal year 2016. In addition, operating income and operating margin for the March 2016 quarter and fiscal year 2016 were impacted by impairments of goodwill and intangibles totaling $21.2 million relating to Eastern Airways.

However, exchange rate fluctuations weren’t in favor of the company’s operations since a substantial portion of operations in the Europe Caspian region are contracted in British pound sterling and Norwegian kroner, which weakened significantly against the US dollar recently. This resulted in an additional an $11.6 million and $65.8 million reduction in revenue for the Europe and Caspian region operations.

Bristow Group Inc (NYSE:BRS) is a provider of helicopter services to the offshore energy industry with global operations. The company has transportation operations in the North Sea, Nigeria and the United States Gulf of Mexico, and in most of the other offshore energy producing regions of the world.


DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.