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Bristow Group: Cheap And Well-Managed

Mar. 08, 2021 5:06 PM ETBristow Group Inc. (VTOL)15 Comments
SCIRE Investments profile picture
SCIRE Investments


  • Bristow Group is a well-managed company generating positive free cash flow in a hard-hit industry.
  • It trades at a discount to both book value and net asset value.
  • It is likely that we will see further industry consolidation and improving profitability.

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SCIRE Investments believes that Bristow Group, Inc (NYSE:VTOL) is a well-managed company with a strong capital allocation focus trading at a significant discount to value. They are in a tough industry, but expect that going forward they will have more tailwinds than headwinds. There are several factors that should benefit them, such as consolidation and higher oil prices.

About Bristow Group

Bristow Group is primarily a helicopter services company. They provide vertical flight and aviation services to oil and gas companies, public and private search and rescue - SAR services, fixed wing transportation and ad hoc services. Most of the oil and gas exposure is offshore energy and they have public sector SAR service for the U.K. and commercial SAR services in several countries. They have a diversified customer base with customers in Australia, Brazil, Canada, Chile, Colombia, Guyana, India, Mexico, Nigeria, Norway, Spain, Suriname, Trinidad, the U.K. and the U.S. As of 12/31/20 pro forma revenue breakdown by region and aircraft is as follows:

Source: Q3 2021 Earnings Presentation

The Merger & Industry Consolidation

Due to low oil and natural gas prices over the last few years helicopter services companies have been hit hard. Many of the offshore oil services companies have gone bankrupt. In fact, Bristow went bankrupt. However, this company is not really Bristow or not entirely at least. One of the companies in this industry that did NOT go bankrupt was Era Group. In January 2020 Era Group merged with Bristow Group to form the current company. While Bristow was the larger of the two, Era was the

This article was written by

SCIRE Investments profile picture
I am a CFA Charterholder, Marine Corps Veteran, and obtained my MBA from a Top 20 Business School. My investment approach is opportunistic, flexible, fundamentally based, and valuation driven. I will invest in individual stocks, options, warrants, bonds, ETF's, CEF's, or mutual funds based on where I can find opportunities that go along with my expertise. The idea is to have a wide net and invest in anything from deep value to high growth, domestic to international wherever their is opportunity and where I can understand the investment.

Analyst’s Disclosure: I am/we are long VTOL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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