Revenue Increases For CHC Group Ltd (NYSE:HELI)
CHC Group Ltd (NYSE:HELI) reported operational numbers for the first time on 13th March, after it took the IPO route to raise close to $322 million as proceeds from the exercise. The 3Q operation results release, ended up sinking the hopes of its new investors, since the stock saw a substantive 5.8 percent dip during trading on 14th March, which saw the first full day of trading, post the results announcements.
The Richmond, Canada based firm which is more widely known for its flag ship CHC Helicopter, saw its 3Q revenue go up by 3 percent to reach $454 million. This resulted in a net loss of $60 million, which was slightly above the $59 million it had called out in 3Q12. YTD, this translates to a total revenue generation of $1.31 billion and a net loss from operations of $149 million. The losses have almost doubled when one considers an YTD compare, with losses for the first three quarters of FY12 coming in at $85 million. The firm also announced that a major chunk of the IPO proceeds were used to retire debt and rest would be used for its operations. The firm also announced that it is planning to expand its operations in Nigeria on the back of increased demand for its flag ship product.
Providing guidance for its 2014, full year operations CHC Group Ltd (NYSE:HELI) has indicated a slight increase in its revenue in comparison to FY13, while it anticipates its earnings before taxes to dip in the low single digits. It has also anticipated its debt servicing to account for $150 to $160 million, while its tax liabilities are expected to cost the company in the $30 million range. For its next year operations, the firm hopes to set aside nearly $140 to $190 million as its cap ex budget.