MONTREAL, Sept. 3, 2015 /CNW/ - HNZ Group Inc. (TSX: HNZ.A, HNZ.B) (the "Corporation"), an international provider of helicopter transportation and related support services, announced today it had received a notice of intent to award a contract from the United States Department of Defense in support of the North Warning System ("NWS"). HNZ, operating under the brand Canadian Helicopters, has been selected as the "successful offeror" with regard to the consolidated Rotary Wing Operations and Maintenance, Bulk Fuel and Supplemental Rotary Wing contract, subject to customary U.S. government approval of operational funding for each fiscal year and conclusion of definitive contracts.
The Department of Defense decision was taken following a competitive bidding process. A total of nine owned IFR medium and heavy helicopters, including some redeployed fleet from Afghanistan, will be used for the contract.
The contract includes a year-round service employing five aircraft on the Operations and Maintenance component, and four aircraft in a seasonal capacity servicing the Bulk Fuel and Supplemental components with various commencement dates. Canadian Helicopters is the current service provider for both the Bulk Fuel transfer and Supplemental components. The NWS is an early warning radar system, comprised of 47 radar sites spanning the Canadian Arctic.
The contract is for a six-month base period with four one-year and one six-month extensions, each exercisable at the option of the Department of Defense, for a total of five years with expected aggregate revenues of approximately US$61 million. The contract is denominated in United States dollars with payment components comprised of fixed charges, hours flown and compensation for the transportation of fuel. A minimum number of hours and quantity of fuel per year are specified. Fuel transferred is provided at no cost to Canadian Helicopters. The prime contractor is the Canadian Commercial Corporation, Canada's international contracting agency, which focuses on government-to-government contracting and procurement.
"These agreements represent a continuation of our long term relationship with the U.S. military," said Don Wall, President and CEO of HNZ Group. "We are pleased with the ongoing confidence that the United States Department of Defense has placed in the quality of our services and operations. We look forward to increasing our support of the NWS to include the Operations and Maintenance component, while continuing our support of the Bulk Fuel and Supplemental flight operations."
ABOUT HNZ GROUP INC.
HNZ Group is an international provider of helicopter transportation and related support services with operations in Canada, New Zealand, Australia, Norway, Southeast Asia and Antarctica. The Corporation operates in excess of 120 helicopters to support offshore and onshore charter activities. Offshore operations worldwide are provided through HNZ Global and partner Norsk Helikopterservice while onshore charter operations are managed by Canadian Helicopters in Canada, Asia-Pacific and Antarctica. Clients consist of multinational companies and government agencies including offshore and onshore oil and gas, mineral exploration, military support, hydro and utilities, forest management, construction, air ambulance and search and rescue. In addition to charter services, it provides third-party repair and maintenance services and flight training, including the internationally recognized HNZ Topflight advanced training centre in Penticton, British Columbia. HNZ Group is a publically traded company on the Toronto Stock Exchange (TSX: HNZ.A, HNZ.B) and is headquartered near Montreal, Canada employing approximately 700 personnel from 34 locations around the world.
Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Examples of such statements include, but are not limited to, the financial position, results of operations, objectives, dividend policy, participation in bidding processes, continuing business relationship with actual or potential key clients (in particular Rio Tinto and Shell), expected revenues from contracts with key clients, seasonal levels of activity, maintenance of contractual relationships, impact of any economic uncertainty, the Corporation's ability to reduce operating costs, expected competition, use of available funds, maintenance of strategic relationships with aboriginal groups and regulations (in particular environmental and transportation regulations) and legislation (including tax legislation) applicable to the Corporation.
Although the forward-looking statements contained in this press release are based upon what management of the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. The assumptions on which the forward-looking statements are based include, but are not limited to, general economic trends, industry trends, current contractual and business relationships, capital markets and current competitive, governmental, regulatory and legal environment.
These statements are not based on historical facts but instead reflect current expectations of management regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed in this press release or referred to under "Risk Factors". These forward-looking statements are made as of the date of this press release, and the Corporation assumes no obligation to update or revise them to reflect new events or circumstances, unless required by applicable laws.
SOURCE HNZ Group Inc.
For further information: HNZ Group Inc., Matthew Wright, CFA, MBA, Vice President and Chief Financial Officer, Tel.: 780-429-6903