Q4 2023 Bristow Group Inc Earnings Call
Operator: If you would like to withdraw your question, press star and the number 5 once again. At this time, I would like to turn the call over to Redeate Tilahun, Senior Manager of Investor Relations and Financial Reporting. Thank you, Daniel. Good morning, everyone, and welcome to Bristow Group's fourth quarter and full year 2023 earnings conference call. I am joined on the call today by our President and Chief Executive Officer, Chris Bradshaw, and Senior Vice President and Chief Financial Officer, Jennifer Whalen. Before we begin, I'd like to take this opportunity to remind everyone that during the course of this call, management may make forward-looking statements that are subject to risks and uncertainties that are described in more detail on slide three of our investor presentation. You may access our investor presentation on our website. We will also reference certain non-GAAP financial measures such as EBITDA and free cash flow.
If you would like to withdraw your question press Star and the number five once again.
At this time I would like to turn the call over to your Red telephone senior manager of Investor Relations and financial reporting.
Yeah.
Thank you Danielle.
Good morning, everyone and welcome to Bristow groups fourth quarter and full year 2023 earnings conference call.
I am joined on the call today, with our President and Chief Executive Officer, Chris Bradshaw, and senior Vice President and Chief Financial Officer, Jennifer Whalen.
Before we begin I'd like to take this opportunity to remind everyone that during the course of this call management may make forward looking statements that are subject to risks and uncertainties that are described in more detail on slide three of our investor presentation.
You may access our investor presentation on our website.
We will also reference certain non-GAAP financial measures, such as EBITDA and free cash flow a reconciliation of such measures to GAAP is included in our earnings release and our Investor presentation.
Redeate Tilahun: A reconciliation of such measures to GAAP is included in our earnings release and our investor presentation. I will now turn the call over to our President and CEO, Chris. Thank you, Regison, on February 28th.
I will now turn the call over to our President and CEO.
Thank you Randy.
On February 28.
Christopher S. Bradshaw: One of Bristow's search and rescue helicopters, registration LN-OIJ, with six crew members on board, was involved in an accident during a SAR training exercise approximately 15 nautical miles west of Bergen, Norway. On behalf of all Bristow team members around the world, I extend our heartfelt condolences to the family and friends of our dear colleague whose life was lost in that tragic accident. This is a deeply sad and difficult time, and we will carry this loss with us always.
One of Bristow search and rescue helicopters registration Ellen cash a y J.
Six crew members on board.
I was involved in an accident during a SAR training exercise.
<unk> 15 nautical miles west with Bergen, Norway.
On behalf of all Bristow team members around the world.
I extend our heartfelt condolences to.
For the family and friends.
Our dear colleague.
Life was lost on that tragic accident.
This is a deeply sad and difficult time.
And we will carry this loss with us always.
We are relieved to share that the other five crew members have now either been released from the hospital or remain in stable condition that hospital.
Christopher S. Bradshaw: We are relieved to share that the other five core members have now either been released from the hospital or remain in stable condition at the hospital. It is our highest priority to take care of our crew and their family members and provide them with any assistance needed. Bristow is fully cooperating with authorities investigating the accident, and we will provide future updates as appropriate. Looking back on 2023, I want to thank and commend the Bristow team for delivering many successful outcomes last year. We continue to progress our strategic goal to grow and diversify our leading government services business, with the successful award of the 670 million euro Irish Coast Guard contract, building upon the recent addition of key government contracts in the United Kingdom. Dutch Caribbean, the Netherlands, and the Falkland Islands in our offshore energy services business.
Our highest priority to take care of our crew and their family members.
Provide them with any assistance needed.
Bristow is fully cooperating with authorities investigating the accident.
And we will provide future updates as appropriate.
Okay.
Looking back on 2023, I want to thank and commend the Bristow team for delivering many successful outcome versus last year.
We continue to progress our strategic goal to grow and diversify.
Our leading government services business with.
With the successful award of the $670 million Euro Irish Coast Guard contract.
Building upon the recent addition of key government contracts in the United Kingdom.
Dutch Caribbean.
The Netherlands, and the Falkland Islands.
In our offshore energy services business the.
Christopher S. Bradshaw: The second half of 2023 marks a positive inflection point, beginning what we believe will be a multi-year growth period, with the largest global fleet of offshore helicopters and a significant presence in key regions. Bristow expects to be a primary beneficiary of this extended growth cycle in offshore energy. I will now hand it over to our CFO for a review of financial results, Jennifer. Thank you, Chris.
The second half of 2023 March the positive inflection point, beginning what we believe will be a multiyear growth cycle.
With the largest global fleet of offshore helicopters.
And a significant presence in key regions.
We're still expects to be a primary beneficiary of this extended growth cycle and offshore energy.
I'll now hand, it over to our CFO, who will review our financial results.
Thank you Chris.
Jennifer Dawn Whalen: Today, I will begin with an analysis of the sequential quarter comparison of Bristow's financial results. EBITDA adjusted to include special items, asset dispositions, and foreign exchange was $46 million for the fourth quarter of 2023 compared to $56.6 million in the third quarter for a total of $102.6 million in the second half of 2023 compared to $67.9 million in the first half, consistent with our outlook that the second half of 2023 would mark a positive inflection point for Bristow's financial results. Operating revenues were lowered by $0.7 million, primarily due to lower utilization in government services and our fixing business, partially offset by increases in offshore energy services due to a new contract in Norway and increased utilization in Africa. Operating expenses were $8.8 million higher in the current quarter, primarily due to higher fuel, leased and equipment, repairs and maintenance, and personnel costs. General and Administrative expenses were $2.1 million lower, primarily due to lower compensation costs.
Today, I will begin with an analysis of it.
Actual quarter comparison, the Crystal financial result.
EBITA adjusted.
Special items.
Physician and foreign exchange with $46 million for the fourth quarter of 2023 compared to $56 6 million in the third quarter.
A total of $102 6 million in the second half of 2023 compared to seven 9 million in the first half.
Consistent with our outlets at the second half of 2023 that Mark the positive inflection point for Princess financial results.
Operating revenues were lower by $7 million, primarily due to lower utilization in government services and our fixed wing business, partially offset by increases in offshore energy services.
New contract in Norway, and increased utilization of that in Africa.
Operating expenses were $8 8 million higher in the current quarter, primarily due to higher fuel.
And equipment repairs and maintenance and personnel costs.
General and administrative expenses were $2 1 million lower primarily due to lower compensation costs.
Jennifer Dawn Whalen: Earnings from unconsolidated affiliates were $2.6 million lower due to seasonality at Cougar. As noted in previous earnings calls, the other income line item is primarily comprised of non-cash foreign currency gains and losses, which we've excluded from AdjustmentKiva.com. In our third quarter earnings announcement, we raised our 2023 adjusted EBITDA guidance from $150 to $170 million to $165 to $175 million. And we are pleased to announce full year 2023 results of $171 million, just over the midpoint of our increased guidance and over the high end of our original guidance for 2023. Based on the results from Q4 and full year 2023, we reaffirmed Bristow's 2024 financial outlook with an EBITDA range of $190 to $220 million. The midpoint for adjusted EBITDA for 2024 is 20% higher than 2023, which would represent the second consecutive year of more than 20% EBITDA growth.
Earnings from unconsolidated affiliates for $2 6 million lower due to seasonality actually Kara.
As noted in previous earnings calls the other income line item is primarily comprised of noncash foreign currency gains and losses, which we've excluded from our adjusted EBITDA calculation.
And our third quarter earnings announcement, we raised our 2023 adjusted EBITDA guidance from 150 to 170 million to $165 million to $175 million and we are pleased to announce full year 2023 results of $171 million or just over the midpoint of our increased guidance and over.
The high end of our original guidance for 2023.
Based on the results from Q4 and full year 2023, we reaffirmed braskem 2024 financial outlook with an EBITDA range of $190 million to $220 million.
The midpoint for adjusted EBITDA for 'twenty 'twenty, four is 20% higher than 2023, which would represent the second consecutive year of more than 20% EBITDA growth.
Jennifer Dawn Whalen: This increase is primarily driven by the expected growth in our offshore energy line of service. In 2023, we started new projects in Brazil, Norway, and the Gulf of Mexico, with the full-year EBITDA impact of those being reflected in 2024. In addition, we have been successful in achieving more favorable rates compared to our expiring contracts, and we expect to benefit from higher flight hours from short-term expiration campaigns. Further details are available on slides 11 and 12 of the presentation. Finally, Bristow continues to benefit from a strong balance sheet and liquidity. As of December 31st, our available liquidity was $251 million.
This increase was primarily driven by the expected growth in our offshore energy line in service.
In 2023, we started new projects in Brazil.
Our way and the Gulf of Mexico, with the full year EBITDA impact of those reflected in 2024.
In addition, we have been successful in achieving more favorable rates compared to our expiring contract and we expect to benefit from higher five hours from short term exploration campaign.
Further details are available on slides 11, and 12 of the presentation.
Finally, Bristow continues to benefit from a strong balance sheet and liquidity position as.
As of December 31st our available liquidity was $251 million.
Jennifer Dawn Whalen: As we've noted in our earnings presentation and prior calls, we have a capital investment of approximately $300 million related to the successful award of contracts with the UK and Irish Coast Guard. Much of this capital investment is expected to happen in 2024 as we will be adding 11 new helicopters to our fleet. Our search and rescue contracts are long-term in nature, typically 10 years with an attractive return.
As we've noted in our earnings presentation in prior calls we have a capital investment of approximately $300 million related to the successful award of contract with the UK and Irish Coast Guard.
This capital investment is expected to happen in 2024, absolutely, adding 11, new helicopters to our fleet.
Our search and rescue contract are long term in nature, typically 10 years with attractive return.
Jennifer Dawn Whalen: So once we're through with the investment period, we have long-term cash yields, as noted on slide 14 of our presentation. We plan to fund this investment with cash on hand, operating cash flows, the recently announced upsize in our NatWest facility, other potential financing, and our aircraft. Xterra
So once we're through with the investment period, we have long term cash yield as noted on slide 14 of our presentation.
We plan to fund this investment with cash on hand operating cash for the recently announced upsizing our Natwest facility.
Other potential financing and our aircraft.
Alright.
In addition, last week, we announced the purchase of <unk> and AWS 189 helicopters to be delivered between 2025% in 2028.
Jennifer Dawn Whalen: In addition, last week we announced the purchase of 10 AW189 helicopters to be delivered between 2025 and 2028. As of now, we plan to fund these purchases with operating cash flows but could end up financing or leasing them if there are other uses of capital over time. As we've stated before, we believe that this business model will continue to generate strong cash flows. At this time, I'll turn the call back to Chris for further remarks. All right.
As of now we plan to fund these purchases with operating cash flow, but could end up financing or leasing them. If there are other uses of capital over time.
As we've stated before we believe that this business model will continue to generate strong cash.
At this time I'll turn the call back to Chris for further remarks.
Right.
Thank you.
Christopher S. Bradshaw: Thank you. As Jennifer noted, 2024 is expected to be an important year for Bristow's business. In our government services line, we are scheduled to launch operations for the Irish Coast Guard from our first base in Ireland, as well as commence the transition of operations to the new SAR 2G contract in the United Kingdom, both in the fourth quarter of this year. Those are large contract transition projects with extended transition timelines, running through mid 2025 in Ireland and through the end of 2026 for the UK's R2G, and our offshore energy services business, we expect utilization We recently announced a strategic fleet upgrade with orders for 10 AW189 helicopters, plus options for an additional 10 AW189. The AW189 is a leading super-medium helicopter, offering reliable and safe, long-range, high-capacity performance while allowing for lower operating costs than traditional heavy helicopters.
As Jennifer noted 2024 is expected to be an important year for Bristow is business.
And our government services line, we are scheduled to launch operations for the Irish Coast Guard from our first base in Ireland.
As well as commence the transition of operations to the new <unk> contracts in the United Kingdom.
Both in the fourth quarter of this year.
Those are large contract transition projects with extended transition timelines.
Running through mid 2025, and Ireland and through the end of 2026 for UK SAR two G.
In our offshore energy services business, we can.
Utilization and rates to continue to increase.
Which will drive significant improvements in cash flow generation in 2024 and beyond.
In order to capitalize on these opportunities and meet customer demand.
We recently announced a strategic fleet upgrade with orders for 10, AWS 189 helicopters plus.
Plus options for an additional 10 AWS at nine.
The AWS <unk> nine is a leading super medium helicopter offering reliable and safe long range high capacity performance will.
While allowing for lower operating costs and traditional heavy helicopters.
These new aircraft will offer added flexibility as well as superior operational and environmental performance, including lower <unk> emissions than comparable aircraft types.
Christopher S. Bradshaw: These new aircraft will offer added flexibility, as well as superior operational and environmental performance, including lower CO2 emissions and comparable aircraft types. Bristow currently operates 21 AW189 helicopters globally in both offshore crew transport, as well as search and rescue missions, with an additional five already scheduled for delivery beginning and Earnings Calls. The supply and demand balance for offshore configured heavy and super medium helicopters has become quite tight, with limited available capacity. There are roughly 200 offshore configured S-92 helicopters in the market today, partly due to a number of these airframes being unserviceable as they await critical parts due to persistent supply chain challenges. The global S-92 fleet is at or near full effective utilization level. Amongst the current super-medium model helicopters.
Bristow currently operates 21 AWS eight nine helicopters globally in.
In both offshore crew transport as well as search and rescue missions.
With an additional five already scheduled for delivery beginning.
Recent earnings calls.
Supply and demand balance for offshore configured heavy and Super medium helicopters has become quite tight with limited available capacity.
There are roughly 200 offshore configured S 92 helicopters in the market today.
Partly due to a number of these airframes being on serviceable as they await critical parts due to persistent supply chain challenges.
The global S 92 fleet is at or near full effective utilization levels.
Amongst the current Super medium model helicopters.
Christopher S. Bradshaw: There are roughly 40 each of the AW189 and H175 models in the offshore market today. Both of these models are at or near full effective utilization levels as well, with current manufacturing lead times for the AW189 at approximately 24 months. Consequently, the ability to bring in new capacity is constrained.
They were roughly 40 each of the AWS <unk> nine and <unk> hundred 75 models in the offshore market today.
Both of these models are at or near full effective utilization levels as well.
With current manufacturing lead times for the AWS 109 at approximately 24 months.
The ability to bring in new capacity is constrained.
Bristow is new framework agreement for AWS eight nine.
Christopher S. Bradshaw: Bristow's new framework agreement for AW189 represents a flexible solution to meet at an Attractive Return for Bristow stakeholders. With that, let's open the line for questions. Daniel?
Represents a flexible solution to meet.
Okay.
At attractive returns for Bristow stakeholders.
With that let's open the line for questions Daniel.
Okay.
Operator: At this time, I would like to remind everyone, in order to ask a question, press star and then the number 5 on your telephone keypad. If you would like to withdraw your question, press star and then the number 5 once again. We'll pause for a moment to compile the Q&A roster. The first question is from John Sullivan from The Benchmark Company. Your line is now open. Take care. Good morning, Josh.
At this time I would like to remind everyone in order to ask a question.
And then number five on your telephone keypad.
Did you would like to withdraw your question Crystal and then the number of clients pumps again.
We will pause for a moment to compile the Q&A roster.
Okay.
The first question is from Jonathan some of them from the benchmark company.
Your line is now live.
Hey, good morning.
Good morning, Josh.
As far as the Irish SAR contract, what does that transition look like.
Christopher S. Bradshaw: As far as the Irish Star contract, what does that transition look like? We are honored and excited to be starting up the Irish Coast Guard contract. The first base is scheduled to come online beginning this October.
We are.
Honored and excited to be starting up the Irish Coast Guard contract. The first base is scheduled to come online beginning this October.
Christopher S. Bradshaw: There is a transition period that carries through to mid-2025. So we should expect around Q2 2025 to see the full financial impact, is that right? Not quite the full impact in Q2.
There is a transition period that carries through.
Mid 2025.
Okay.
So we should expect Q2 25 to see the full financial impact is that right.
Not quite full impact in Q2, the spinal startup would really be in mid 2025. So late Q2 early Q3, but certainly in the second half of next year second half of 2025 would be indicative of the full run rate benefit of the Irish Coast Guard contract.
Christopher S. Bradshaw: The final startup would really be in mid-2025, so late Q2, early Q3, but certainly in the second half of next year, the second half of 2025, would be indicative of the full run rate benefit of the Irish Coast Guard contract. OK. And then just with tight MRO markets globally, you know, can you comment just on the availability of parts and service, you know, how does it look for the S-92 opportunities? The helicopter industry as a whole continues to be challenged by, and Josh. We've been talking about supply chain issues. That is, maybe common parts across different helicopter models. But as you referenced, Josh, to date, it's really the supply chain situation, which has been a persistent one for the S-92 over the last couple of years, which is the most acute challenge. And we are still seeing very extended delays in the delivery of parts and repairs for the S-92.
Okay.
And then just with tight MRO markets globally can you comment just on the availability of parts and service.
Good luck for the S 92 opportunities.
The helicopter industry as a whole continues to be challenged by some.
Apply chain issues that is chilled maybe common parts across different helicopter models.
But as you referenced Josh.
It's really the supply chain situation, which has been a persistent one for the S 92 over the last couple of years, which is the most acute challenge and we are still seeing very extended delays in the delivery of parts and repairs for the S 92, and we expect based upon the latest information.
Christopher S. Bradshaw: And we expect, based upon the latest information that's available to us, that those delays will continue at least through the end of this calendar year. So that continues to be a challenge that is impacting the industry as a whole. And then maybe just switching over to the AAM market. You know, we are getting closer to some certification of some of these products. Can you update us on your strategy at this point, and then maybe any comments?
That's available to us that those delays will continue at least through the end of this calendar year. So that continues to be.
A challenge, which is which has impacted the industry as a whole.
Okay.
And then maybe just switching over to the market, we are getting closer to some certification of some of these products can.
Can you update us just on your strategy at this point and then maybe any comments.
On the THC partnership.
Christopher S. Bradshaw: on the THC partnership, and Advanced Air Mobility is a developing new industry that Bristow started looking at, really, about five years ago, understanding what we thought the technologies could be, what the potential mission applications could be, whether there's a role for Bristow to play in that new supply chain. And then, really, about three years ago, Ernest started furthering some partnerships with what we believe are some of the leading companies developing those new products.
And.
Advanced their mobility is.
Developing new industry that Bristol started looking at really about five years ago.
Standing what we thought the technologies could be what the potential mission applications could be whether there is a role for bristow to play in that new supply chain.
And then beginning really about three years ago in earnest started furthering some partnerships with what we believe are some of the leading companies developing those new products.
Christopher S. Bradshaw: We did some diligence and research to determine the teams that we thought had the right backgrounds, skill sets, capabilities, the right technology, and the right resources to bring those aircraft through to certification and eventually put them into production. And over the course of that time, we have signed a number of partnerships with what we think will be some of the leaders in that new space. And as the global leader in innovative and sustainable vertical flight solutions, we do think there'll be an important role for Bristow to play there. We think that will start initially with servicing some new applications, complementary, additive ones for some of our existing customers, whether that be cargo logistics or, eventually, more regional passenger movements.
Did some diligence and research to determine the teams that we thought had the right background and skill sets capabilities of.
The right technology for the right resources to bring those aircrafts through to certification and eventually put them in to production and over the course of that time, we have signed now on a number of partnerships again with what we think will be some of the leaders in that new space.
And as the global leader in innovative and sustainable vertical flight solutions, we do think there'll be an important role for bristow to play there.
That will start initially with servicing some new applications complementary additive ones for some of our existing customers whether that be cargo logistics or.
Essentially more regional passenger movements.
Christopher S. Bradshaw: So again, we think this is going to be an important part of the future of the aviation industry, and we think there's a role for Bristow to play there as a leader in vertical lift. The THC partnership, which we recently announced, is a newer one that is with the Helicopter and Jet Company, or THC, in Saudi Arabia, which we see as the clear leader in the vertical lift industry in that country.
So again, we think this is going to be an important part of the future of the aviation industry and we think there's a role for Bristow to play there as a leader in vertical lift.
The THC partnership, which we recently announced is a newer one.
That is with the helicopter and jet company or THC in Saudi Arabia, which we see as the clear leader in the vertical with industry.
In that country in the Kingdom.
Christopher S. Bradshaw: And I think they see in Bristow, a company that has expertise and a leading position now in advanced air mobility, that can be additive to what they're doing. So we're excited about that partnership and again, the opportunity to work with THC, which we view as the clear leader in the kingdom of Saudi Arabia. And then just the comments around, you have the NatWest facility, but just the other financing options that you might have available as far as these government contracts are concerned. Sure Josh, this is Jennifer.
And I think they see in Bristow company, who has.
The expertise and leading position now in advanced mobility that can be additive to what they are doing so we're excited about that partnership and again the opportunity to work with THC, which which we view us as the clear leader in the Kingdom of Saudi Arabia.
Hello.
And then just the comments around you have the net west facility.
Just the other financing options that you might have available as far as these government contracts.
Sure Josh it's Jennifer.
If the top tier.
Jennifer Dawn Whalen: Good to talk to you. As I noted in my comments, we do have a lot of flexibility with our financing, particularly around the government services contracts, where the banks tend to look through our credit to the credit quality of the governments that we're servicing. So that gives us pretty favorable financing, and we're in the middle of discussing some additional financing with some other banks. And once we close those, we'll announce them to the public.
As I had noted in my comments, we do have.
A lot of flexibility with our with the financing, particularly around the government services contracts.
The banks tend to look through our credit to the credit quality of the governments that we're servicing so that gives us pretty favorable financing so were in the in the middle of discussing some additional financing with some other banks and once we close does we'll announce.
Sure.
Christopher S. Bradshaw: And then I guess just lastly, you know, touching on the Norway incident, obviously a difficult moment, but what are the financial impacts we should think about? Thank you, Josh, for the sentiment and the question on that important event. Of course, the most material impact and the biggest one, obviously, is really the life that was lost and the impact on the family, friends, and loved ones of that individual.
And then I guess, just lastly, touching on that the Nomura incident, obviously a difficult moment.
But what are the financial impacts we should think about.
Thank you Josh for the sentiment and the question on that important.
Event.
The most material impact and the biggest one obviously is really built for life that was loss and the impact on the family friends and loved ones of that individual also the other crew members who were onboard the aircraft.
Christopher S. Bradshaw: Also, the other crew members who were on board the aircraft. We are relieved that those individuals are now all recovering and improving in either out of the hospital for four out of the five. And the one who remains in the hospital, again, is again in stable and improving condition.
Our belief that those individuals are now.
Now all recovering.
Improving in either out of the hospital for four out of five and the one who remains in the hospital again stable and improving conditions. So.
Christopher S. Bradshaw: So we're pleased with that status. Our priority is to continue to support our crew, provide their families with the resources that they need, and support really our whole team in Norway as we recover from this tragic accident. From a business standpoint, traditional transitioning to that lens, there really is not a material financial impact to the company related to the accident.
We're pleased with that status our priority is to continue to support.
Our crew.
Provide there.
There are families.
With the resources that they need support really our whole team in Norway as we recover from this tragic accident.
From a business standpoint.
Transitioning to that wins, there really is not a material financial impact to the company.
Related to the accident.
Christopher S. Bradshaw: Okay, thank you for your time. Thanks, Josh. The next question comes from Steve Silver from Argos Research. Your line is now open.
Okay. Thank you for the time.
Thanks, Josh.
Our next question comes from Steve for Silver from Argos Research. Your line is now open.
Okay.
Christopher S. Bradshaw: Thank you, operator, and good morning everybody. Thanks for taking the questions, and my condolences to the families and to the entire group for last week's accident as well. You guys provided some of the benefits of the AW189 helicopters as factors for becoming pretty much the aircraft of choice for the fleet expansion moving forward. But are there any other material features beyond the supply chain factors that you see as making a good alternative for the offshore energy contracts typically serviced by the S-92s? Good morning, Steve, and thank you again for the well wishes and condolences. On the 189, the aircraft offers a number of efficiency benefits relative to some other existing technologies in the market today. It can really perform a high percentage of the missions that were traditionally performed by heavy helicopters, but it can do so more efficiently and at lower operating costs. Thus, lower fuel burn, which helps from a lower CO2 emission standpoint, but also a lower absolute cost in terms of the operations of the aircraft.
Thank you operator, and good morning, everybody. Thanks for taking the questions and my condolences to the families and the entire group for last week's accident as well.
You guys provided some of the benefits of the AWS 89 helicopters as factors for the coming pretty much the aircraft of choice for the fleet expansion moving forward.
But are there any other material features beyond the supply chain factors.
But you see it is making a good alternative for the offshore energy contracts typically serviced by the S 90 twos.
Good morning, Steve and thank you again for the well wishes.
No one says.
On the 189.
The aircraft offers a number of efficiency benefits relative to some other existing technologies in the market today it can really perform.
A high percentage of the missions that we're traditionally performed by heavy helicopters, but it can do so more efficiently and at lower operating costs.
Lower fuel burn, which helps from a lower C. O two emission standpoint, but also a lower absolute costs in terms of the operations of the aircraft. So it provides.
Christopher S. Bradshaw: So it provides an efficient solution to service a lot of the very high percentage of traditional heavy missions at a more compelling price. Great That's helpful. Thanks. And one more, if I may. Your presentation has periodically, over time, included a slide talking about the company's net asset value, suggesting that the shares are trading at a discount on that metric. Just broadly speaking, could you just speak to your current thinking as to the primary factors that might be accounting for that disconnect?
And efficient solution to service a lot of the very high percentage of the traditional heavy missions.
At a more compelling price points.
Great. That's helpful. Thanks, and one more if I may present.
A presentation has periodically over time included a slide.
Talking about the Companys net asset value.
Suggesting that the shares are trading at a discount on that metric just broadly speaking could you just speak to your current thinking as to the primary factors that might be accounting for that disconnect.
Thank you. Thank you for the question as has been our long standing practice, we did publish our annual <unk>.
Christopher S. Bradshaw: Thank you. As has been our longstanding practice, we did publish our annual NAV disclosure again this year, with a little bit of background on how it's derived.
This measure again this year.
A little bit of background on how it drives the once a year, we receive a third party appraisal for all of our owned aircraft.
Christopher S. Bradshaw: So once a year, we receive a third-party appraisal for all our owned aircraft, owned helicopters, and aircraft that we have in the fleet. And that's what's reflected in the one point three billion dollars in aircraft value in those that are from that third-party appraisal. We then take the net book value of the other assets of the company less the liabilities to come up with the aggregate net asset value, which is again that one point three billion number, which translates to a number of roughly forty-seven dollars per share NAV today.
Owned helicopters and aircrafts that we have in the fleet and that's what's reflected in that one 3 billion of aircraft value and those are from that third party appraisal. We then take the net book value of the other assets of the company, let the liabilities to come up with that.
With the aggregate net asset value, which is the.
At $1 3 billion number which translates to a number of roughly $47 per share NAV today.
Christopher S. Bradshaw: And this is obviously a substantial discount to our current price, which we believe can be a compelling entry point for the stock. Thank you for the color. I appreciate it. Thank you. As a reminder, if you would like to ask a question, please press start, then number five on your telephone keypad. If you would like to withdraw your question, press star and then 5 again. We will just wait while we compile the Q&A questions. Okay, there are no further questions in the queue. I will now turn the call back over to Christopher Bradshaw for closing remarks. Thank you, Daniel, and thanks, everyone, for joining the call this quarter. I'll talk to you again next time. Be safe, stay well.
And this is obviously a substantial discounts are curve right.
Believe it can be a compelling entry point for the stock.
Okay.
Okay. Thank you for the color I appreciate it.
Yes.
As a reminder, if you would like to ask a question. Please press Star then the number five on your telephone keypad.
If you would like to withdraw your question Chris.
And then finally again.
We will just wind global component with Q&A.
Okay. Hello, My further questions in the queue I will now turn the coupon payments Christopher Pretzel for closing remarks.
Thank you Daniel and thanks, everyone for joining the call this quarter.
Talk to you again next time.
They will.
Okay.
[music].