North Sea helicopter operator CHC Scotia has recorded a £4.8 million loss in 2023 in what the company described as “challenging industry conditions”.
The result means losses at the North Sea helicopter firm have narrowed after it recorded a £10.6m loss in 2022.
The loss in the year to the end of April comes despite CHC increasing turnover by 17.5% to £103.6m, compared to £88m in the year prior.
CHC Scotia is a subsidiary of Texas-headquartered CHC Group, which operates 45 flight bases across North America, Brazil, Australia and mainland Europe.
According to financial documents, CHC’s UK subsidiary owed more than £98.9m to other companies within the group as of 30 April 2023.
As a result, the company “will rely on the continuation of existing financial support” from parent firm CHC Group and may require “further additional funding” if cash flow forecasts are not achieved.
© HEMEDIAWithin the report, CHC directors said they are “confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months”.
An independent auditor agreed with that assessment and said it had not identified any material uncertainty that “may cast significant doubt” on CHC’s ability to continue operating.
CHC declined to comment for this story.
CHC shows ‘significant resilience’
In its financial report, CHC said it demonstrated “significant resilience in the current market” in 2023 despite “challenging industry conditions”.
CHC added that its “competitive position” will be “further enhanced by the substantial improvements throughout CHC Group”.
It pointed to growth in both its traditional business transporting workers to oil and gas assets offshore, as well as providing crew transportation services for the construction of offshore wind farm operations.
This included the massive Dogger Bank development and RWE’s Sofia wind farm, as well as Orsted’s Hornsea 1 and 2 projects.
© Supplied by Chris Sumner/P&JThe report added: “The company is well positioned to pursue major oil and gas opportunities along with offshore windfarm services.
“Recent contract wins and retentions provide a solid platform for future stability.”
The company said it continues to focus on “maximising revenue, earnings and operating performance through a variety of profit improvement initiatives” alongside cost reduction efforts.
CHC said these measures underpin a “planned long term expansion in line with the overall business strategy”.
The company currently operates 15 helicopters from its bases in Aberdeen, Sumburgh, Humberside and Norwich.
Offshore helicopter sector
The CHC result stands in stark contrast to its UK competitors Bristow Group, Offshore Helicopter Services (OHS), and NHV Group.
Bristow Group’s UK subsidiary reported a £17.1m profit after tax in the nine months to December 2022, with its next full year accounts due by 30 September.
Meanwhile, OHS reported a $416,000 profit for 2023, following a £28.7m profit the year before, although the company is facing a £10m probe from UK tax authorities.
Belgian firm NHV recorded a loss of around £583,000 from its UK operations in 2023.
The financial result for CHC comes during a turbulent period for the company over the last 12 months.
In January, former chief executive Jorn Madsen resigned just 10 months after taking on the role.
In December last year, CHC also faced industrial action from disgruntled employees over a pay dispute.
Meanwhile, the wider North Sea offshore helicopter sector continues to face challenges relating to spare parts shortages, rising costs and fiscal uncertainty.
The industry is also facing renewed safety concerns from the offshore workforce following a fatal crash in Norway earlier this year.
