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 $3.9 million higher in the Current Quarter compared to the Preceding Quarter.

Operating revenues from offshore energy services were $4.8 million lower in the Current Quarter.

Operating revenues from offshore energy services in the Americas were $5.5 million lower in the Current Quarter primarily due to lower utilization in Suriname and Trinidad and lower revenues of $3.2 million from Cougar Helicopters Inc. (“Cougar”), primarily due to a one-time benefit in the Preceding Quarter related to transitioning from cash basis recognition to an accrual basis of accounting for lease payments. These decreases were partially offset by higher utilization in Brazil.

Operating revenues from offshore energy services in Africa were $0.5 million higher in the Current Quarter primarily due to additional aircraft on contract.

Operating revenues from offshore energy services in Europe were $0.1 million higher in the Current Quarter. Revenues in the UK were $3.0 million higher primarily due to higher utilization and the strengthening of the British Pound Sterling (“GBP”) relative to the U.S. dollar. Revenues in Norway were $2.9 million lower primarily due to lower utilization.

Operating revenues from government services were $5.8 million higher in the Current Quarter primarily due to the strengthening of the GBP relative to the U.S. dollar, fewer penalties related to availability and higher utilization.

Operating revenues from fixed wing services were $3.6 million higher in the Current Quarter primarily due to higher utilization.

Operating revenues from other services were $0.5 million lower primarily due to lower dry-lease revenues.

Operating expenses. Operating expenses were $16.3 million higher than the Preceding Quarter. Operating personnel costs were $13.0 million higher primarily due to the finalization of a labor agreement in the UK of $6.5 million in the Current Quarter, of which $4.6 million was related to prior periods, seasonal personnel cost variations in Norway of $3.8 million in the Preceding Quarter, one-time benefits related to an adjustment for tax equalization in Suriname and insurance reserve adjustments recognized in the Preceding Quarter of $1.6 million, and an increase in headcount in support of new contracts and higher activity of $1.1 million. Excluding the impact of seasonal and non-recurring items, operating personnel costs would have otherwise been $3.0 million higher in the Current Quarter.

Repairs and maintenance costs were $1.1 million higher primarily due to the timing of repairs, partially offset by lower inventory write-offs. Other operating costs were $1.9 million higher primarily due to lower gains from foreign currency hedging contracts and higher subcontractor costs.

General and administrative expenses. General and administrative expenses were $2.0 million lower than the Preceding Quarter primarily due to lower professional services fees.

Other, net. Other income, net of $10.6 million in the Current Quarter primarily resulted from foreign exchange gains of $10.9 million. Other expense, net of $0.1 million in the Preceding 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.

Income tax expense. Income tax expense was $8.4 million in the Current Quarter compared to $9.2 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 Year compared to Prior Year

The following table presents our operating results and other statement of operations information for the Current Year and Prior Year (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 Year compared to Prior Year

Operating revenues. Operating revenues were $103.6 million higher in the Current Year compared to the Prior Year.

Operating revenues from offshore energy services were $103.0 million higher in the Current Year.

Operating revenues from offshore energy services in the Americas were $35.6 million higher in the Current Year primarily due to the commencement of new contracts at higher rates in Brazil and higher utilization in the U.S. Gulf of Mexico and Trinidad. These increases were partially offset by the end of a contract in Guyana, lower utilization in Suriname and lower revenues from Cougar.

Operating revenues from offshore energy services in Africa were $35.3 million higher primarily due to higher utilization and increased rates.

Operating revenues from offshore energy services in Europe were $32.2 million higher in the Current Year primarily due to the commencement of a new contract in Norway.

Operating revenues from government services were $8.4 million lower in the Current Year primarily due to a change in rates after transitioning to the long-term contract with the Dutch Caribbean Coast Guard.

Operating revenues from fixed wing services were $9.7 million higher in the Current Year primarily due to higher utilization and increased rates.

Operating expenses. Operating expenses were $48.4 million higher in the Current Year. Repairs and maintenance costs were $17.6 million higher primarily due to higher power-by-the-hour (“PBH”) expenses related to increased flight hours and the timing of repairs, partially offset by lower inventory write-offs. Personnel costs were $13.8 million higher primarily due to an increase in headcount in Norway and Africa. Other operating costs were $10.5 million higher in the Current Year primarily due to the commencement of new offshore energy services contracts. Leased-in equipment costs were $4.8 million higher due to additional leased-in helicopters in support of a new contract in Norway.

General and administrative expenses. General and administrative expenses were $6.4 million lower primarily due to lower insurance costs and professional services fees.

Earnings from unconsolidated affiliates. Earnings from unconsolidated affiliates were $3.3 million lower primarily due to lower earnings from Cougar.

Other, net. Other income, net was $4.3 million in the Current Year compared to other expense, net of $11.6 million in the Prior Year primarily due to variances from foreign exchange gains (losses).

Income tax expense. Income tax expense was $20.1 million in the Current Year compared to $3.3 million in the Prior Year 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.