Bristow Group Inc.

Results of Operations for Current Quarter compared to Preceding Quarter

The following table presents our operating results and other statement of operations information for the Current Quarter and Preceding Quarter .

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Total Revenues by Segment

Flight Hours by Segment

Offshore Energy Services

Revenues from Offshore Energy Services were $13.0 million higher in the Current Quarter. Revenues in Europe were $6.4 million higher primarily due to higher utilization and favorable foreign exchange rate impacts in Norway. Revenues in the Americas were $3.7 million higher primarily due to higher utilization in the U.S. Revenues in Africa were $3.0 million higher primarily due to higher utilization and additional aircraft capacity introduced into the region. Operating income was $6.2 million higher in the Current Quarter primarily due to these higher revenues, partially offset by higher operating expenses of $5.7 million. The increase in operating expenses was primarily due to higher reimbursable expenses of $2.5 million, higher training and travel costs of $1.2 million due to an increase in pilot training for Africa and Brazil, higher subcontractor costs of $1.2 million, and higher repairs and maintenance costs of $1.2 million. The higher repairs and maintenance costs related to an increase in power-by-the-hour (“PBH”) rates, increased flight hours and the timing of repairs totaling $5.6 million, partially offset by higher vendor credits of $4.4 million. Personnel costs were $1.7 million lower due to seasonal personnel cost variations in Norway of $4.2 million and a favorable change in benefit estimates in the U.S. of $0.4 million, which were partially offset by unfavorable foreign exchange rate impacts of $2.2 million and higher headcount of $1.0 million, primarily in Brazil and Africa.

Government Services

Revenues from Government Services were $6.6 million higher in the Current Quarter primarily due to the ongoing transition of the Irish Coast Guard ("IRCG") contract and higher utilization in UKSAR. Operating loss was $1.9 million in Current Quarter compared to operating income of $6.0 million in the Preceding Quarter primarily due to higher subcontractor costs of $5.1 million and higher personnel costs of $2.8 million related to the new Government Services contracts, unfavorable foreign exchange rate impacts of $3.0 million, higher repairs and maintenance costs of $2.0 million, and higher fuel costs of $0.6 million, offsetting the increased revenues.

Other Services

Revenues from Other Services were $6.3 million higher in the Current Quarter primarily due to seasonally higher utilization in Australia of $6.0 million. Operating income was $4.1 million higher in the Current Quarter primarily due to these higher revenues, partially offset by higher operating expenses of $1.9 million due to increased activity.

Corporate

Total operating losses for Corporate were $6.7 million less than the Preceding Quarter primarily due to increased gains on disposal of assets. During the Current Quarter, the Company sold or otherwise disposed of two AW139 medium helicopters resulting in net gains of $6.2 million. During the Preceding Quarter, the Company disposed of certain non-aircraft assets, resulting in a net loss of $0.6 million.

Interest Expense, net

Interest expense, net was $0.5 million higher in the Current Quarter primarily due to the acceleration of the amortization of deferred financing costs of $0.7 million resulting from the prepayment of principal on the UKSAR Debt.

Other, net

Other income, net of $17.6 million in the Current Quarter and $11.4 million in the Preceding Quarter primarily resulted from foreign exchange gains.

Income tax expense

Income tax expense was $20.4 million in the Current Quarter compared to $10.2 million in the Preceding Quarter. The increase in income tax expense was primarily due to the earnings mix of the Company's global operations and lower deductible business interest expenses, partially offset by the recognition of certain deferred tax assets.

Results of Operations for 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:

Total Revenues by Segment

Flight Hours by Segment

Current Year compared to Prior Year

Offshore Energy Services

Revenues from Offshore Energy Services were $13.0 million higher in the Current Year. Revenues in Africa were $17.5 million higher primarily due to higher utilization and additional aircraft capacity. Revenues in the Americas were $0.5 million higher primarily due to higher utilization in Brazil and the U.S., which was partially offset by the absence of a one-time benefit in the Prior Year related to the transition from cash basis recognition to an accrual basis of accounting in Canada and lower utilization in Trinidad. Revenues in Europe were $4.9 million lower primarily due to lower utilization and higher penalties due to aircraft availability, partially offset by higher rates and favorable foreign exchange gains. Operating income was $14.8 million higher in the Current Year primarily due to these higher revenues coupled with favorable general and administrative expenses. Overall operating expenses were in line with the Prior Year. The increase in other operating expenses of $9.1 million was primarily related to increased activity in Africa. Personnel costs were $6.0 million higher primarily due to increased headcount in Africa and higher compensation costs in Europe due to labor agreement escalations. Repairs and maintenance costs were $8.3 million lower primarily due to increased vendor credits. Fuel costs were $5.2 million lower due to lower global fuel prices and decreased flight hours.

Government Services

Revenues from Government Services were $16.7 million higher in the Current Year due to the commencement of the IRCG contract of $11.3 million and higher UKSAR revenues of $5.9 million primarily due to the commencement of the 2nd Generation UK SAR Contract (“UKSAR2G”). Operating income was $10.3 million lower due to higher expenses attributable to the commencement of new contracts in Ireland and the UK, partially offset by higher revenues. Operating expenses were $23.8 million higher primarily due to higher subcontractor costs of $12.0 million, increased personnel costs of $7.6 million and higher amortization of deferred costs of $2.0 million. Additionally, general and administrative costs and depreciation and amortization expenses were $2.0 million and $1.1 million higher, respectively, all of which were due to the ongoing transitions on the new Government Services contracts.

Other Services

Revenues from Other Services were $0.4 million higher in the Current Year primarily due to increased charter revenues in Australia, partially offset by lower dry-lease revenues due to the conclusion of a contract. Operating income from Other Services was $1.7 million lower primarily due to higher leased-in equipment costs of $0.7 million due to two new aircraft leases and higher other operating costs related to increased seasonal activity in Australia.

Corporate

Total operating losses for Corporate were $5.8 million lower than the Prior Year primarily due to increased gains on disposal of assets. During the Current Year, the Company sold or otherwise disposed of two AW139 medium helicopters and various other assets, resulting in net gains of $5.7 million. During the Prior Year, the Company sold or otherwise disposed of assets resulting in losses of $0.3 million.

Interest Expense, net

Interest expense, net was $0.7 million higher in the Current Year primarily due to the acceleration of the amortization of deferred financing costs of $0.7 million due to the prepayment of principal on the UKSAR Debt.

Other, net

Other income, net of $29.0 million in the Current Year primarily resulted from foreign exchange gains. Other expense, net of $6.3 million in the Prior Year primarily resulted from foreign exchange losses.

Income tax expense

Income tax expense was $18.9 million higher in the Current Year primarily due to the earnings mix of the Company’s global operations and changes to deferred tax valuation allowances and deferred tax assets.