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A number of US law firms have announced investigations into Bristow Group on behalf of investors the move comes after the firm last week cast doubt on the validity of its own finances.
The company, which has a base in Aberdeen serving the oil and gas sector, saw its share price tumble last week after it reported “material weaknesses†in its financial reporting.
Several US legal firms have announced they are starting investigations into whether Bristow had violated federal securities laws or carried out any other unlawful business practices.
Those investigating include Glancy Prongay & Murray of Los Angeles, Block & Leviton of Boston and Levi & Korsinsky of New York.
Another, Kirby McInerney, issued a statement saying “this investigation concerns whether Bristow has violated federal securities laws and/or engaged in other unlawful business practicesâ€.
Following last week’s announcement, Bristow’s share price dropped 40% from $3.00 to $1.80. A massive drop from its peak in 2018 of $18.72
The firm, which employs around 900 people in the UK, said there would be no impact on its UK operations.
In a press release issued yesterday, the firm said the “weaknesses†in its financial reporting related to the removal of certain helicopter engines from pledged or leased airframes.
The firm said it is “continuing to assess†the impact of the issue on Bristow’s balance sheet and is working to “develop a remediation planâ€.
Yesterday, Bristow offered more specifics as to the “material weaknesses†in its internal controls it first revealed on February 11. The company said it is related to the fact that “certain pledged and leased helicopter engines were not matched to specific pledged or leased helicopter airframes or returned to such airframes within specified periods, as is required under certain of the secured financing and helicopter lease agreements.â€
According to Bristow, removal and replacement was part of its normal and ongoing maintenance operations. However, “since certain of those helicopter engines and airframes are pledged to lenders or leased from lessors, the removal of a pledged or leased engine from a pledged or leased airframe can create issues of non-compliance with certain of the secured financing and helicopter lease agreements.â€
Bristow said the issue affected a small number of its 385 helicopter engines subject to secured financing or helicopter leases, noting the issue was discovered and cured for all but nine engines related to three agreements before Dec. 31, 2018. Those engines were not returned to pledged airframes due to delays with certain maintenance service providers, Bristow said, adding that it had obtained non-compliance waivers under applicable agreements related to those engines.
The company said it needs to obtain waivers from secured equipment lenders and helicopter lessors related to non-compliance of non-financial covenants under related agreements as of Dec. 31, 2018 and prior periods. Without the waivers, certain debt balances would need to be reclassified from long-term to short-term under accounting rules.
Reclassifying the debt to short-term would require Bristow to insert a “going concern†warning in its current and applicable prior financial statements filed with the SEC. Certain equipment lending/lease covenants at Bristow require the filing of audited financial annual statements (Form 10-K) “without any going concern explanation or limitation.†If Bristow is forced to insert a “going concern†warning in prior financial statements, then a “going concern†waiver would need to be obtained from the appropriate lenders/lessors.
Bristow further said the delay in filing its latest quarterly report (Form 10-Q) could trigger a delisting warning from the New York Stock Exchange.
Photo is licensed under the Creative CommonsAttribution-Share Alike 2.0 Generic license. Author: Ronnie Robertson
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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