MONTREAL, June 1, 2016 /CNW/ - HNZ Group Inc. (TSX: HNZ) (the "Corporation"), an international provider of helicopter transportation and related support services, announced today that its wholly-owned subsidiary, HNZ New Zealand Limited, has entered into an offshore oil and gas helicopter support contract with a consortium of customers which includes Shell Todd Oil Services Limited, AWE Taranaki Limited, OMV New Zealand Limited and Origin Energy Resources (Kupe) Limited, New Plymouth.
The contract commenced on April 1, 2016, as HNZ began crew change helicopter services from New Plymouth to various offshore petroleum platforms in New Zealand using two AgustaWestland AW139 helicopters. This contract replaces two previous contracts HNZ held with the same customer group which collectively utilized three AW139 helicopters. One of the New Zealand based AW139 aircraft is expected to be redeployed to other opportunities outside the country.
The initial term of the contract is five years with five one-year option periods, exercisable by the customer. Revenues under the contract during the initial five year term are expected to be approximately $60 million ($67 million NZD) including annual inflation adjustments over the period. The contact contains both US dollar and New Zealand dollar revenues, corresponding to the underlying costs of the operation.
"We are extremely pleased to continue serving our longstanding customers in New Zealand with a focus on continuous safety improvement," said Don Wall, President and Chief Executive Officer of HNZ Group. "Through the development of value-added solutions based on innovative sharing principles, we are able to continue the successful partnership with our clients that first began in 1969."
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 115 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, and Acasta HeliFlight in Northern Canada. 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) and is headquartered near Montreal, Canada employing approximately 600 personnel from 35 locations around the world.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements relating to the future contractual relationship between the Corporation and the customers named herein and in particular with respect to the expected revenues and duration of such relationship. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they were made. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise unless being required by applicable laws.
SOURCE HNZ Group Inc.
For further information: HNZ Group Inc., Matt Wright, CFA, MBA, Vice President and Chief Financial Officer, Tel.: 780-429-6903