Global Vectra Helicorp Ltd, India’s largest dedicated offshore air logistics helicopter company, today announced results for the quarter and six months ended September 30, 2007.

Financial Highlights

- Six Months ended September 30, 2007

· Revenue of Rs. 90.07 cr.

· 93% of revenues generated from long term contracts

· Other income is mainly due to mark-to-market of forex loans

· Net Profit of Rs. 13.90 cr.

· Revenue is net of contractual deduction of Rs 48 lacs and helicopter spares consumption & maintenance includes Rs. 300 lacs pertaining to previous year

- Quarter ended September 30, 2007

· Revenue of Rs. 44.33 cr.

· Other income is mainly due to mark-to-market of forex loans

· Net Profit of Rs. 3.09 cr.

· Helicopter spares consumption & maintenance includes Rs 97 lacs pertaining to previous quarter

Commenting on the performance, Mr. 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 Rs. 90 lacs per helicopter per month

· Added 2 Euro Copter helicopters and leased out temporarily until deployed under long term contract

· Revenue hours - 7562

· Capacity utilisation – 82%

· Average rate per flying hour – Rs. 42,000

· Average fixed charges per helicopter – Rs.48.80 lacs per month

· Fuel price escalation clause for 11 of the 17 helicopters on long term contract

· Employee costs higher due to ad-hoc increase to retain scarce talent

· Rupee appreciation impact is neutral on the operating results as forex revenue and expenses almost match in absolute terms

· 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

Industry Scenario

Oil and gas is the major driver for economic progress and demand in India is likely to grow from 115 million tonnes in 2004 to 377 million tones by the year 2020. India is one of the least explored regions in the world with only 18% acreage explored so far. 85% of India's oil & gas is located offshore. Prospects for offshore helicopter services are directly linked to scale and momentum of the offshore oil and gas exploration and production.

Of the global population of around 25000 helicopters, around 185 helicopters are operating in India, of which 120 are in non-scheduled segment. Only 38 helicopters are used for dedicated offshore oil exploration and production spread on the east and west coast. About 30 helicopters are used on the west coast as Mumbai High is the largest producing field in India.

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.

Business Outlook

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, flown over 40,000 offshore hours and carried over 1 million Pax since inception.

The company is 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

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.

Sourced From: Equicorp