Bristow Group Inc

Results of Operations

The following table presents our operating results and other statement of operations information for the Current Quarter and the Preceding Quarter (in thousands, except percentages):

Revenues by Service Line. The table below sets forth the operating revenues earned by service line for the applicable periods (in thousands):

Current Quarter compared to Preceding Quarter

Operating revenues. Operating revenues were $23.1 million higher in the Current Quarter compared to the Preceding Quarter.

Operating revenues from offshore energy services were $17.8 million higher in the Current Quarter.

Operating revenues from offshore energy services in the Americas were $9.2 million higher in the Current Quarter primarily due to higher utilization and higher revenues of $2.9 million from Cougar Helicopters Inc. (“Cougar”), which transitioned from cash basis recognition to an accrual basis of accounting for lease payments in the Current Quarter.

Operating revenues from offshore energy services in Africa were $8.3 million higher in the Current Quarter primarily due to higher utilization and increased rates.

Operating revenues from offshore energy services in Europe were $0.2 million higher in the Current Quarter. Revenues in Norway were $2.0 million higher primarily due to higher utilization, partially offset by the weakening of the Norwegian krone (“NOK”) relative to the U.S. dollar. Revenues in the UK were $1.8 million lower primarily due to lower utilization and lower maintenance services revenues.

Operating revenues from government services were $2.6 million lower in the Current Quarter primarily due to a change in monthly standing charge (“MSC”) rates and penalties related to lower availability.

Operating revenues from fixed wing services were $8.3 million higher in the Current Quarter primarily due to higher utilization and increased rates.

Operating expenses. Operating expenses were $0.9 million lower than the Preceding Quarter. Operating personnel salaries were $6.3 million lower primarily due to seasonal personnel cost variations in Norway and an adjustment for tax equalization in Suriname. Leased-in equipment costs were $0.8 million lower primarily due to the termination of an aircraft lease in Norway. Insurance costs were $0.4 million lower in the Current Quarter. These decreases were partially offset by higher repairs and maintenance costs of $3.4 million related to higher power-by-the-hour (“PBH”) expenses from increased flight hours and higher inventory write-offs. Other operating costs were $1.9 million higher primarily due to a reclassification of subcontractor costs. Fuel costs were $1.2 million higher primarily due to increased flight hours.

General and administrative expenses. General and administrative expenses were $1.6 million higher than the Preceding Quarter primarily due to higher professional services fees, partially offset by lower personnel and insurance costs.

Earnings from unconsolidated affiliates. During the Current Quarter, the Company recognized earnings of $0.7 million from unconsolidated affiliates compared to earnings of $1.4 million in the Preceding Quarter.

Other, net. Other expense, net of $0.1 million in the Current Quarter primarily resulted from foreign exchange losses of $0.7 million, partially offset by government grants to fixed wing services and a favorable interest adjustment to the Company’s pension liability. Other expense, net of $6.2 million in the Preceding Quarter resulted from foreign exchange losses of $6.5 million due to the significant devaluation of the Nigerian Naira (“NGN”).

Income tax expense. Income tax expense was $9.2 million in the Current Quarter compared to $2.5 million in the Preceding Quarter primarily due to the earnings mix of the Company’s global operations and changes to deferred tax valuation allowances and deferred tax assets.

Current Period compared to Prior Year Period

The following table presents our operating results and other statement of operations information for the Current Period and Prior Year Period (in thousands, except percentages):

Revenues by Service Line. The table below sets forth the operating revenues earned by service line for the applicable periods (in thousands):

Current Period compared to Prior Year Period

Operating revenues. Operating revenues were $77.4 million higher in the Current Period compared to the Prior Year Period.

Operating revenues from offshore energy services were $82.4 million higher in the Current Period.

Operating revenues from offshore energy services in the Americas were $34.4 million higher in the Current Period primarily due to higher utilization and increased rates. Revenues in Canada were higher primarily due to increased lease payments from Cougar and the transition from cash basis recognition to an accrual basis of accounting for lease payments during the Current Period.

Operating revenues from offshore energy services in Europe were $26.6 million higher in the Current Period. Revenues in Norway were $24.5 million higher primarily due to the commencement of a new contract and higher utilization. Revenues in the UK were $2.2 million higher primarily due to increased rates, partially offset by lower utilization.

Operating revenues from offshore energy services in Africa were $21.3 million higher primarily due to higher utilization and increased rates.

Operating revenues from government services were $8.1 million lower in the Current Period primarily due to a change in rates after transitioning to the long-term contract with the Dutch Caribbean Coast Guard (“DCCG”) from the interim period.

Operating revenues from fixed wing services were $3.3 million higher in the Current Period primarily due to higher utilization, partially offset by the weakening of the Australian dollar (“AUD”) relative to the U.S. dollar.

Operating expenses. Operating expenses were $26.4 million higher in the Current Period. Repairs and maintenance costs were $11.4 million higher due to higher PBH expenses related to increased flight hours and the timing of repairs, partially offset by lower inventory write-offs. Other operating costs were $6.2 million higher in the Current Period primarily due to the commencement of new offshore energy services contracts. Personnel costs were $5.8 million higher primarily due to an increase in headcount in Norway and Africa. Leased-in equipment costs were $3.2 million higher due to additional leased-in helicopters in support of new contracts in Norway. Fuel costs were $1.0 million higher due to increased flight hours. These increases were partially offset by lower insurance costs of $1.1 million.

General and administrative expenses. General and administrative expenses were $3.1 million lower primarily due to lower insurance costs and professional services fees, partially offset by higher personnel costs.

Interest income. Interest income was $1.5 million higher than the Prior Year Period primarily due to higher interest rates and income from sales-type leases.

Other, net. Other expense, net was $6.3 million in the Current Period compared to $16.5 million in the Prior Year Period primarily due to lower foreign exchange losses.

Income tax benefit (expense). Income tax expense was $11.8 million in the Current Period compared to an income tax benefit of $19.3 million in the Prior Year Period primarily due to the earnings mix of the Company’s global operations compared to a loss in 2023, changes to deferred tax valuation allowances and deferred tax assets.