Dallas, Texas 07/02/2015 (Financialstrend) – The impact of a strengthened dollar came to bite CHC Group Ltd (NYSE:HELI) seen by a 3% drop in revenues for the 2015 fiscal year that came in at $1.7 billion. However, on a constant currency basis revenues were up by 1%. Fourth quarter revenue came in at $374 million translating to a net loss of $115 million.
Cost Cutting Plans
Despite posting a loss in the quarter, CEO, Karl Fessenden maintains that the company continues to benefit from having a good portion of its revenue weighted towards oil and gas production. Cost cuts should come into play going forward as CHC Group Ltd (NYSE:HELI) looks to grow its profit margins with a view of strengthening its balance sheet.
The company is also looking forward to partnering with its customers with a view to making available solutions that result in lower customer costs. The efforts are expected to position CHC Group as a more efficient, market responsive and competitive company in the industry.
An asset backend loan facility continues to increase CHC Group Ltd (NYSE:HELI) liquidity thus providing the much needed financial flexibility for carrying out various operations. A bond tender carried out in the fourth quarter allowed the company to slash its debt by $21 million. The total bonds retired in the year amounted to $320 million. CHC Group ended the year with $500 million in liquidity.
Business Segment Performance
The Helicopter services segment continues to be the key driver of CHC Group Ltd (NYSE:HELI)’s revenues having accounted for $341 million of the total $374 million. However, the sector was hit hard by currency translation as well as lower flying activity and lower reimbursable revenue
Heli-One segment posted revenues of $33 million in the quarter a decline of 32% from last year. The decline was down to lower third party flying hours as well as the timing of maintenance work completions.