First Reserve to invest $100m in CHC Helicopter

First Reserve Corp. will invest an additional $100 million in equity in CHC Helicopter to help the company grow in the midst of strong growth in offshore helicopter services.

Connecticut-based First Reserve, the biggest private equity investor in the energy industry, acquired CHC in 2008 in a deal worth $1.5 billion, looking to capitalise on rising demand for flights to offshore rig.

CHC, the world’s largest commercial operator of medium and heavy helicopters, announced the investment along with its financial results for its fiscal first quarter 2012.

It saw a 22 per cent year-on-year increase in revenue from $337 million to $409.6m. EBITDAR and EBITDA also increased by 13 per cent and 22 per cent respectively.

A net loss of $2.9 million was reported, however, compared with net earnings of $0.6 million in the equivalent 2011 quarter. This was attributed to $4.8 million in restructuring costs related to operations and efficiency improvements, as well as a charge of $7.4 million
for impairment of assets held for sale.