HNZ Group announces renewal of offshore oil and gas support contract in the Philippines
01 Jun, 2016, 08:00 ET
MONTREAL, June 1, 2016 /CNW Telbec/ - 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 Shell Philippines Exploration, BV ("SPEX").
HNZ New Zealand Limited has been awarded a five year extension to its existing contract with Shell Philippines Exploration, BV (SPEX). This extension replaces the original five one-year option periods at the expiry of the existing contract, and will be in effect from August 2017 to August 2022. The contract for SPEX is for the supply of two AgustaWestland AW139 helicopters for the provision of services to the Malampaya Gas Platform.
Revenues for the extension period of five years are expected to be approximately $61 million ($47 million USD). There are non-recurring costs of approximately $3 million USD in relation to transition of replacement aircraft into the contract which will occur during financial year 2016. These costs will be recovered across the term of the extension period.
"We are very pleased to continue supporting Shell's offshore operations in the Philippines" said Don Wall, President and Chief Executive Officer of HNZ Group. "The confidence Shell has placed in HNZ for ongoing helicopter support services both in the Philippines and other regions across the globe demonstrates the reputation we have gained for providing safe, reliable and cost-effective solutions. We look forward to supporting Shell over the course of the renewed contract."
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 Shell Philippines Exploration, BV (SPEX) and in particular with respect to the expected revenues, costs 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
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