Estimated reading time 2 minutes, 41 seconds.
HNZ Group recorded a $13.8-million net loss in 2015, the company disclosed in its year-end results yesterday. This compares to a $12.3-million profit in 2014, with revenues dropping from $207.5 million in 2014 to $188.7 million in 2015.
However, despite the well-publicized slowdown in the offshore market, it was a $37.1-million decrease in HNZ’s onshore revenue that was the cause of the drop; the company’s offshore revenue actually helped to offset that, increasing by $11.2 million from the 2014 figure.
HNZ president and CEO Don Wall said the company’s recent expansion of its Northern Canadian operations through the creation of Yellowknife, N.W.T.-based Acasta HeliFlight, showed that it remained “opportunistic” despite inclement market conditions.
“We expect continuing headwinds with pressure on volumes and pricing in the current economic environment,” he said in a press release announcing the annual results. “We will continue to work towards achieving growth in the offshore market and remain focused on aligning operating expenses with the current economic environment and preserving a solid balance sheet.”
Fourth quarter revenues in 2015 were higher than the same quarter in 2014, growing from $42 million to $48.8 million. HNZ attributed this to increased offshore revenues, mainly due to the Shell Canada offshore support contract in Halifax, and a slight increase in oil-and-gas support revenues in Asia Pacific and Norway.
While overall flight hours in the quarter were down 0.7 percent from the fourth quarter of 2014, ancillary revenue in the increased by $2.4 million, with increased flight training revenues from HNZ Topflight among the primary reasons.
With the completion of the United States Transportation Command contracts in Afghanistan and reduced utility flying revenue in Canada, onshore revenues decreased by $2.7 million from the fourth quarter of 2014, offset by revenues beginning in October 2015 from the North Warning System contract — a US$61 million U.S. Department of Defense contract for up to five years, that will utilize a total of nine medium and heavy helicopter.
“Continued cost control measures including reductions in discretionary spending, support reductions and achieving cost reductions from suppliers have enabled us to maintain a solid financial position during fiscal 2015 and end the year with a strong balance sheet including $11.1 million of net cash and cash equivalents,” concluded Wall.
