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Many platforms working on the Norwegian platform have led the helicopter company’s revenue to increase by NOK 600 million in two years. Still, costs need to be reduced further.
A CHC helicopter at a rescue exercise in the Johan Sverdrup field last year.
Jon Ingemundsen / Stavanger Aftenblad
In 2016, CHC Helikopter Service lost a giant contract with Equinor on flights from Bergen and Florø to the North Sea. This had a dramatic effect on the accounts, and in two years revenue fell by one billion kronor, which was roughly what the contract was worth.
But now the arrows have turned and the company has recovered a significant part of what it lost. In the past two years, revenue has increased by almost NOK 600 million, from NOK 1.3 to NOK 1.9 billion.
– It is much better to present such figures than when done the other way around, says CEO Per André Rykhus about the accounts that were recently delivered.
I should cut more
The company has so-called deviated financial years, so the figures apply to the period between May 1, 2019 and April 31 of this year.
There were also advances in the final result. The profit before tax increased from 77 to almost 140 million NOK.
– Fantastic work has been done across the organization and on all of our bases, says Rykhus.
– However, I emphasize that it is still necessary to work to continue improving profitability. Competition in the market is tough, he adds.
This means working smarter, reducing costs, digitizing and automating wherever possible.
– Ultimately, this is all a measure that will lower costs, says Rykhus.
– This is actually the revision tune for the entire Norwegian continental shelf and for industry globally. We must improve profitability at all levels, says Rykhus.
| Figures in millions of crowns | 2020 | 2019 | 2018 | 2017 | 2016 |
| Income | 1905 | 1635 | 1329 | 1916 | 2320 |
| Operating profit | 107.7 | 21.7 | -14.4 | 177.7 | 28.3 |
| Res. Before taxes | 139.7 | 77.3 | 6.6 | 175.4 | 16.5 |
Riggers lift
It is especially the market for short-term contracts that has advanced in recent years. This mainly includes flights to exploration wells and other temporary offshore platform operations. Contracts typically last from 30 days to a year.
– There has been very high activity on the Norwegian platform in recent years, says Rykhus.
Then came the coronavirus and created a new uncertainty. So far, it has created few problems for helicopter companies, which have largely remained fully operational. But it is not clear how the activity will develop in the future and what the Storting’s crown tax package will mean for the activity for the oil industry in the coming years.
– We expect the short-term market to shrink slightly in the current year, but it is difficult to estimate what effect it will have on the numbers. Overall, we hope to maintain the current level in the future, says Rykhus.
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Billion dollar contract
The situation looks better after it became clear last week that CHC won a major contract with oil companies Equinor and Vår Energi for flights from Sola, starting next summer. The agreement has a duration of three years, with the option of another three.
CHC currently has contracts with both companies in Sola, but now the two have merged and signed a new joint agreement with the helicopter company. In total, the value can be one billion crowns.
– In total, it is slightly larger than the existing contracts combined. This means we stay active in Sola and provide potential predictability through 2027. This is important, says Rykhus.
