BRISTOW GROUP REPORTS DECEMBER QUARTER AND YEAR-TO-DATE 2022 RESULTS AND UPDATES OUTLOOK FOR CALENDAR YEAR 2023.

HOUSTON: Bristow Group Inc. (NYSE: VTOL) today reported net loss attributable to the Company of $7.0 million, or $0.25 per diluted share, for its quarter ended December 31, 2022 ("Current Quarter") on operating revenues of $304.3 million compared to net income attributable to the Company of $16.5 million, or $0.58 per diluted share, for the quarter ended September 30, 2022 (the "Preceding Quarter") on operating revenues of $299.4 million.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $19.7 million in the Current Quarter compared to $42.7 million in the Preceding Quarter. EBITDA adjusted to exclude special items, gains or losses on asset dispositions and foreign exchange gains or losses was $36.3 million in the Current Quarter compared to $33.9 million in the Preceding Quarter. The following table provides a reconciliation of net income or loss to EBITDA, Adjusted EBITDA and Adjusted EBITDA excluding gains or losses on asset dispositions and foreign exchange gains or losses (in thousands, unaudited). See "Non-GAAP Financial Measures" for further information on the use of non-GAAP financial measures used herein.

Three Months Ended

December 31,

2022

September 30,

2022

Net income (loss)

$ (6,931)

$ 16,501

Depreciation and amortization expense

17,000

16,051

Interest expense, net

10,457

10,008

Income tax expense (benefit)

(853)

116

EBITDA

$ 19,673

$ 42,676

Special items:

PBH amortization

3,700

3,238

Merger and integration costs

335

291

Reorganization items, net

21

29

Other special items (1)

1,627

1,239

$ 5,683

$ 4,797

Adjusted EBITDA

$ 25,356

$ 47,473

(Gains) losses on disposal of assets

1,747

(3,368)

Foreign exchange (gains) losses

9,243

(10,199)

Adjusted EBITDA excluding asset dispositions and foreign exchange

$ 36,346

$ 33,906

(1) Other special items include professional services fees that are not related to continuing business operations and other nonrecurring costs.

"With the recent contract wins in our Government Services line and a stronger oil and gas market, the fundamentals for Bristow's business are improving significantly in 2023," said Chris Bradshaw, President and CEO of Bristow Group. "We are pleased to issue an updated 2023 financial outlook that includes a higher Adjusted EBITDA range of $150 - $170 million. The first quarter will represent the Company's softest financial results, and the momentum will then build with the run rate at year-end expected to be significantly higher than the first half of the year."

Sequential Quarter Results

Operating revenues in the Current Quarter were $5.0 million higher compared to the Preceding Quarter. Operating revenues from offshore energy services were $1.5 million higher primarily due to higher utilization in the Africa region, partially offset by lower utilization in the Americas and the weakening of the Norwegian krone ("NOK") and British pound sterling ("GBP") relative to the U.S. dollar in the Europe region. Operating revenues from government services were $7.1 million higher in the Current Quarter primarily due to the commencement of new contracts in the Dutch Caribbean, the Netherlands and the Falkland Islands, partially offset by lower revenues in U.K. SAR due to lower activity. These increases were partially offset by lower fixed wing services revenues of $3.9 million due to lower activity, consistent with typical seasonality.

Operating expenses were $3.3 million higher in the Current Quarter primarily due to subcontractor costs related to new revenue-generating contracts, higher personnel costs and leased-in equipment costs, partially offset by lower fuel...