Offshore Logistics, Inc. Announces Earnings For The Year Ended June 30

Offshore Logistics, Inc., Lafayette, La., a supplier of marine and aviation services to the worldwide oil industry, has reported gross revenues for the year ended June 30, 1978 of $77.0 million, an increase of 14 percent from $67.8 million for fiscal 1977. Net income was $5.6 million, or $2.03 per share, compared with $6.1 million, or $2.20 per share.

The company has adopted the policy of deferring the cost of American Bureau of Shipping special surveys significant for the first time in 1978. Such costs are being amortized over the periods benefited. Accordingly, earnings for the first three quarters of 1978 have been restated. This restatement results in an increase in earnings previously reported for the nine months ended March 31, 1978, of $710,000, or $0.26 per share. Net income for the fourth quarter of 1978 was $1,375,000, or $0.49 per share, compared to $2,175,000 and $0.78 per share for the fourth quarter of 1977.

Mr. Keenan, chairman of the board and president, stated that the increase in gross revenue for the year was attributable primarily to growth of the helicopter fleet as the company increased the number of aircraft from 72 to 107 during 1978. The contribution to earnings before taxes from the Aviation Division has continued to increase during fiscal 1978, and demand for helicopter services, especially in the Gulf of Mexico, is extremely strong.

The decline in fourth quarter earnings from the previous year is due primarily to the decline in drilling activity offshore Alaska.

During the fourth quarter of fiscal 1977, Offshore Logistics, Inc., has seven of its largest vessels employed in the drilling activities offshore Alaska. Unfortunately, the drilling programs in Alaska have not to date proved successful, and activity in this area decreased to a point which required redeployment of these vessels to other areas.

Mr. Keenan further stated that recent announcements concerning drilling operations off the East Coast of the United States and some increase in the level of activity in the Lower Cook Inlet of Alaska are encouraging signs to the entire industry and especially to Offshore Logistics, Inc., which operates one of the largest U.S.- flag fleets of towing anchor handling vessels.

Other stories from September 15, 1978 issue

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