Bristow Group, Inc. · NYSE:VTOL
Bristow — J.P. Morgan Energy, Power & Renewables Conference 2024
40 slides from Bristow's conference presentation, Jun 18, 2024
Slide 1: J.P. Morgan Energy, Power & Renewables Conference
J.P. Morgan Energy, Power & Renewables Conference June 18, 2024 Exhibit 99.1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
2 Cautionary Statement Regarding Forward-Looking Statements This presentation contains “forward-looking statements.” Forward-looking statements represent Bristow Group Inc.’s (the “Company’s”) current expectations or forecasts of future events. Forward-looking statements generally can be identified
Slide 3: Non-GAAP Financial Measures Reconciliation
3 Non-GAAP Financial Measures Reconciliation In addition to financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes certain non-GAAP measures including EBITDA, Adjusted EBITDA, Net Debt, Free Cash Flow and Adjusted Free Cash
Slide 4: Company Overview
Company Overview
Slide 5: Safety Note
5 Safety Note Bristow is a founding member of HeliOffshore, an industry association focused on safety, now with over 140 members from all regions of the world Safety is Bristow’s #1 core value and highest operational priority Robust safety management system (SMS) With third-party accreditation resul
Slide 6: Leading Global Provider of Innovative and Sustainable Vertical Flight Solutions
6 6% Light Twin 13% Single Engine 8% Fixed Wing/ UAS 31% S92 10% AW189 24% AW139 8% Other Heavy/ Medium 30% Americas 54% Europe 6% Asia Pacific 10% Africa 1% Other 65% Offshore Energy Services 8% Fixed Wing Services 26% Government Services 218 $1.3 bn $1.3 bn Operating Revenues by Region(2)Aircraft
Slide 7: Global aircraft presence by country
7 Canada 6 Aircraft United States 68 Aircraft Mexico 2 Aircraft Dutch Caribbean 2 Aircraft Trinidad 5 Aircraft Suriname 2 Aircraft UK (Falkland Islands) 4 Aircraft Brazil 21 Aircraft Chile 2 Aircraft Australia 11 Aircraft India 2 Aircraft Netherlands 3 Aircraft Norway 28 Aircraft United Kingdom 39 A
Slide 8: Contractual Backlog
8 Contractual Backlog (1) As of March 31, 2024 (2) Only includes Monthly Standing Charge (“MSC”) revenues. Does not include variable flight hour revenues (3) Only includes contracts longer than one year and does not include any short-term contracts, ad hoc activity or potential contract escalations
Slide 9: Significant Upside via Opportunity to Raise Rates as Legacy OES Contracts Expire
9 Significant Upside via Opportunity to Raise Rates as Legacy OES Contracts Expire ~70% of OES Contracts Yet to Reset to Current Market OES Contracts Contracts Reset $3.5bn Typical payment models include: • Monthly Standing Charge (MSC) + Fixed Hourly Rate (FHR) • Ad hoc or pay as you use, and • Oth
Slide 10: Strong Balance Sheet and Liquidity Position
10 Strong Balance Sheet and Liquidity Position Actual Amount Rate Maturity ($mm, as of 3/31/2024) Cash $143 ABL Facility ($85mm)(2) — S+200 bps May-27 Senior Secured Notes 400 6.875% Mar-28 NatWest 158 S+275 bps Mar-36 Total Debt(1)(3) $ 558 Less: Unrestricted Cash $ (141) Net Debt $ 417 Pro Forma A
Slide 11: Offshore Energy Services Trends
Offshore Energy Services Trends
Slide 12: Offshore Capex Forecast
12 Offshore Capex Forecast Global upstream capex is expected to remain robust in 2024, primarily driven by offshore spending, which is anticipated to grow by 15.6% to $213.2 billion Offshore growth is broad-based, and the largest growth is expected in Africa (+34.3% to $27.3 billion), Latin America
Slide 13: Strong Growth in Offshore Spending
13 Strong Growth in Offshore Spending Offshore project FIDs are expected to be above $100bn each year from '24- '26, totaling nearly ~$500bn across the four- year period from '23-'26 Offshore Project Final Investment Decision (“FIDs”) Source: Wood Mackenzie (March 2024), Company Reports, Barclays Re
Slide 14: Positive Offshore Market Dynamics
14 Positive Offshore Market Dynamics Source: Rystad Energy RigCube, April 2024 Global Floater Demand by Work Type Global Floater Demand by Oil Price Sensitivity Global Floating Rig Demand Expected to Grow 32% Between 2023 - 2028E 63 57 56 56 57 64 66 79 91 95 100 17 19 12 10 13 21 11 17 17 20 20 8 8
Slide 15: Government Services Overview
Government Services Overview
Slide 16: Government Services
16 Government Services 1) From the date the contract was signed 2) Operations under a gap-contract commenced in Q4 2022. Base contract began in Q3 2023 3) Reflects the base contract duration of a business acquired in August 2022. The contract will last through 2028 and is expected to retender Countr
Slide 17: An Effective Transition Plan
17 An Effective Transition Plan Investing capital to ensure a successful transition of operations to the new £1.6 billion UKSAR2G contract Significant Addition to Bristow’s Government Services Offering The newly awarded 10-year, approximately €670 million contract will provide for day and night-time
Slide 18: Government SAR – A Timeline of Investment & Returns
18 Government SAR – A Timeline of Investment & Returns Tender Investment Period Base Contract Option Period Cash Yield Time 2022 2023 2024 2025 2026 2027-2032 2033-2038 UKSAR-H UKSAR2G NLSAR DCCG Falklands Acquisition IRCG Retender Contracts
Slide 19: Global Offshore Helicopter Fleet Overview
Global Offshore Helicopter Fleet Overview
Slide 20: Leading Operator of Offshore Helicopters
20 Leading Operator of Offshore Helicopters 1) As of March 31, 2024 2) Reflects estimated fleet size for the listed operators. Excludes PHI Air Medical configured aircraft 3) Estimated amounts for other operators were derived from various independent third-party aviation analytics sources such as Ci
Slide 21: Heavy / Medium Helicopter Fleet Snapshot
21 S92 AW189 H175 AW139 Heavy / Medium Helicopter Fleet Snapshot Market Market Bristow Total # Avg. Age Total # Avg. Age 286 12yrs 67 13yrs 188 12yrs 55 13yrs 17 12yrs 12 11yrs OES GOVSAR (1) As of March 31, 2024 (2) Bristow average age column reflects the average age of owned aircraft (3) The “Mark
Slide 22: A Snapshot of Newbuilds and Capacity
22 New deliveries to the offshore helicopter industry reduced significantly following the last downturn in offshore energy Very little available capacity in the market at this time Most recent deliveries have gone to closed system markets (e.g., China, Middle East) and do not impact the markets or h
Slide 23: Estimated S92 Attrition Over Time
23 Source: Cirium Excludes S92s in China, Russia and the Middle East Attrition chart assumes ~25-years of primary useful life for S92s from the date of delivery Reflects estimated number of S92s exiting the offshore energy market based on original delivery dates. The earliest deliveries of S92s bega
Slide 24: Tightening Asset Market in Offshore Helicopters
24 “Super-medium offshore types are at full utilisation… new orders will take 18 months (at least) to build.” “Requirements for additional heavy / super-medium aircraft can therefore only be met by use of inactive S92s. The ability to reactivate AOG will be critical in this emerging cycle.” Steve Ro
Slide 25: Upgrading Fleet with New AW189 Helicopters
25 Upgrading Fleet with New AW189 Helicopters to Meet Customer Demand and Boost Profitability About the Order The AW189 Bristow's strategic fleet expansion will drive EBITDA growth at attractive returns Bristow's order for 10 new OES configured AW189 helicopters underscores the Company's commitment
Slide 26: 2024-2026 Financial Guidance
2024-2026 Financial Guidance
Slide 27: Affirm 2024 Outlook and Issue 2025 and 2026 Guidance
27 Affirm 2024 Outlook and Issue 2025 and 2026 Guidance… (1) 2024E and 2025E: Estimates. 2026T: Target (2) The average GBP/USD exchange rate assumption used for 2024, 2025 and 2026 was 1.27. For illustrative purposes: Each £0.01 movement in the GBP/USD exchange rate would impact Adjusted EBITDA by +
Slide 28: Significant Growth
28 Significant Growth… (1) The outlook projections provided for 2024, 2025 and 2026 are based on estimates and are not a guarantee of future performance. Please refer to Cautionary Statement Regarding Forward-Looking Statements on slide 3, which discusses risks that could cause actual results to dif
Slide 29: Investments and Accelerating Upcycle Driving EBITDA Growth
29 Full Year Impacts of new contracts commenced in prior year Attractive Leading-Edge Rates New and renewing contracts expected to be at more favorable rates compared to expiring contracts and continuing to reset well into 2026 Investment in Fleet Added capacity from new aircraft deliveries will be
Slide 30: Capital Allocation Strategy
30 Capital Allocation Strategy A Disciplined and Focused Approach Priority Philosophy Status • Protect and maintain strong balance sheet • Structure leases and debt to accommodate optionality • Organically grew the government services offering through several long-term, quality contract wins • Raisi
Slide 31: Summary
31 Summary 01 Global Leader in Vertical Flight Solutions 02 Accelerating Multi-Year Growth Cycle in Offshore Energy Services Investing to Grow and Diversify Highly Profitable Government Services Business 04 Meaningful Value Enhancement from End Market Diversification 05 Strong Balance Sheet with Rob
Slide 32: Appendix
32 Appendix Fleet Overview1 2 ESG 3 Reconciliation of Adjusted EBITDA 4 Adjusted Free Cash Flow Reconciliation 5 Operating Revenues, Seasonality, and Flight Hours by Line of Service
Slide 33: Fleet Overview
33 Fleet Overview NUMBER OF AIRCRAFT(1) TYPE OWNED AIRCRAFT LEASED AIRCRAFT TOTAL AIRCRAFT AVERAGE AGE (YEARS)(2) Heavy Helicopters: S92 38 29 67 14 AW189 17 4 21 8 S61 2 — 2 53 57 33 90 Medium Helicopters: AW139 49 4 53 13 S76 D/C++ 15 — 15 12 AS365 1 — 1 34 65 4 69 Light—Twin Engine Helicopters: A
Slide 34: Adjusted Fleet
34 Adjusted Fleet NUMBER OF AIRCRAFT TYPE TOTAL AIRCRAFT(1) ADDITIONS / RETIREMENTS(2) LEASE RETURNS AS ADJUSTED AIRCRAFT(3) Heavy Helicopters: S92 67 (2) (11) 54 AW189 21 15 36 S61 2 (2) - 90 90 Medium Helicopters: AW139 53 6 59 S76 D/C++ 15 15 AS365 1 (1) - 69 74 Light—Twin Engine Helicopters: AW1
Slide 35: ESG Highlights
35 ESG Highlights Environmental Social Governance Calculated our Baseline Scope 1 and 2 Emissions in 2021, 2022 and 2023(1) ISO 140001 certification in our Brazil and UK operations, as well as U.S. Corporate Completed Sustainable Aviation Fuel (SAF) flights in the UK Transitioning towards electric g
Slide 36: Reconciliation of Adjusted EBITDA
36 Reconciliation of Adjusted EBITDA (2) Other special items include professional services fees that are not related to ongoing business operations and other nonrecurring costs Three Months Ended (1) Special items include the following: March 31, 2024 December 31, 2023 September 30, 2023 June 30, 20
Slide 37: Adjusted Free Cash Flow Reconciliation
37 Adjusted Free Cash Flow Reconciliation (1) Other special items include professional services fees that are not related to ongoing business operations and other nonrecurring costs Three Months Ended ($000s) March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 LTM Net cash provided by
Slide 38: Operating Revenues and Seasonality
38 $293 $312 $330 $330 $329 $0 $200 $400 Mar 2023 Jun 2023 Sept 2023 Dec 2023 Mar 2024 $ M ill io n s Operating Revenues Operations in Nigeria are subject to seasonality as the Harmattan, a dry and dusty trade wind, blows between the end of December and the middle of February. At times when the heav
Slide 39: Operating Revenues and Flight Hours by Line of Service
39 Operating Revenues and Flight Hours by Line of Service Three Months Ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 LTM Operating revenues ($000s) Offshore energy services: Europe $ 99,530 $ 99,066 $ 94,346 $ 87,331 $ 380,273 Americas 88,515 89,200 91,099 80,884 349,698 Af
Slide 40: LTM Operating Revenues by Region
40 LTM Operating Revenues by Region Three Months Ended (in millions) March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 LTM Revenues Europe $ 178.9 $ 177.3 $ 176.8 $ 170.7 $ 703.7 Americas 96.9 97.4 99.7 89.9 383.9 Africa 34.2 34.2 29.9 29.9 128.2 Asia Pacific 19.4 20.7 23.9 21.0 85.0
Bristow Group — J.P. Morgan Energy, Power & Renewables Conference 2024 on 6ix