Global Vectra Helicorp reports H1 revenues of Rs90-cr

03 Nov 2007

1
Global Vectra Helicorp Ltd, India's largest dedicated offshore air logistics helicopter company, has announced results for the quarter and six months ended September 30, 2007. For the six months period ended September 30, 2007 the company has reported revenues of Rs90.07 crore and a net profit of Rs13.90 crore.

The company also said that 93% of the revenues were generated from long-term contracts.

As part of its general guidance, the company said that it was well placed to capitalize on the growing demand for air-transportation of crew and cargo arising from:

· Increasing acreage under oil & gas exploration

· Deployment of additional rigs for production at new fields

· Entry of new players - NELP VI attracted 162 bids for a total of 52 blocks with participation from 35 foreign firms

· Investments in enhanced oil recovery

For the quarter ended September 30, 2007 the company reported revenues of Rs44.33 crore and a net profit of Rs3.09 crore.

Commenting on the performance, Allan Brown, chief executive officer said, "We are making significant investments in fleet expansion, in-house maintenance & support capabilities and global safety standards to meet growing demand for our services from oil & gas sector."

Operational highlights for six months ended September 30, 2007:

  • Over 50% market share in offshore helicopter transportation services
  • Customers include ONGC, Reliance Industries, Gujarat State Petroleum, British Gas India, Transocean Offshore, etc
  • Total number of helicopters - 22.
  • Helicopters under contract - 19
  • Targeted revenue - Average Rs90 lacs per helicopter per month
  • Added two Eurocopter helicopters and leased out temporarily until deployed under long term contract
  • Revenue hours - 7562
  • Capacity utilisation - 82%
  • Average rate per flying hour - Rs42,000
  • Average fixed charges per helicopter - Rs48.80 lacs per month
  • Fuel price escalation clause for 11 of the 17 helicopters on long-term contract
  • Fleet size to go up to 29 helicopters by March 2009
  • Average age of fleet is around 8 years (against around 14 years in 2006) and will further reduce to 4 years by 2009 with induction of new helicopters

Prospects
Speaking of industry prospects the company said that oil and gas will be the major driver for economic progress and demand in India was likely to grow from 115 million tonnes in 2004 to 377 million tones by the year 2020. India is also one of the least explored regions in the world with only 18% acreage explored so far. It pointed out that 85% of India's oil & gas discoveries were located offshore.

ONGC is the largest user of offshore helicopter services in India. ONGC, British Gas, Cairn Energy and Reliance Industries have offshore exploration and production on the west coast and ONGC, Gujarat State Petroleum Corporation, Reliance, Cairn Energy, GAIL, HOEC, Dolphin Drilling and Transocean have offshore exploration and production on the east coast.

Under various rounds of NELP, the government has offered 163 blocks to the bidders resulting in private sector ownership of about 8% of the total recoverable oil reserves and 22% of the total recoverable gas reserves.

Private sector / joint venture companies have made major discoveries in five major areas: Mahanadi-NEC offshore, Krishna-Godavari offshore, Gulf of Cambay, onshore Rajasthan and Cambay Basins.

Krishna-Godavari region is likely to rival Mumbai High region in oil and gas recovery in future and hence be a major growth driver for offshore helicopter services. Helicopter deployment in the east coast is already growing and would rise substantially once the production commences by the year 2009-10.

Global Vectra Helicorp Ltd is India's largest dedicated offshore air logistics helicopter company since 1998, serving the oil & gas exploration and production on both sides of the Indian subcontinent.

It is India's first ISO 9001-2000, ISO 14001-2000 and OHSAS ISO 18001-1999 certified aviation company. The company introduced Bell 412 Helicopter to the Indian offshore industry and has the largest Bell 412 Helicopter fleet in this part of the globe. It also introduced EC 155B1 helicopter for first time in India for deep-water utilization. It has maintained more than 95% helicopter availability and flown over 40,000 offshore hours.

The government has articulated its vision to have complete exploration coverage by 2025, which would be a sustained long term demand driver for offshore helicopter services. Global Vectra Helicorp has recorded strong growth over the past few years and is poised for a quantum leap in future.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more