Offshore Logistics, Inc. (NYSE: OLG) reported today that its helicopter fleet operating in the U.S. Gulf of Mexico did not sustain any damage from hurricanes Katrina and Rita. Prior to landfall for both hurricanes, the Company moved its helicopters out of the path of the storms. This is standard operating procedure when any significant tropical storm or hurricane approaches the Company’s operating facilities located along the Gulf Coast. In addition, there were no employee injuries or fatalities from the hurricanes.
However, Hurricane Katrina caused a total loss of the Company’s shorebase facility located at Venice, Louisiana. Hurricane Rita severely damaged the Company’s shorebase facility located at Creole, Louisiana. In addition, Hurricane Rita caused extensive flooding at the Company’s shorebase facility located at Intracoastal City, Louisiana. Some minor storm damage occurred at other facilities, but all are operational. While a thorough damage assessment of the facilities is currently under way, it is expected that losses will be covered by insurance, net of deductibles, and therefore will not have a material effect on the Company’s financial results. At this time, the Company is in the process of evaluating what actions will be taken with regard to the Venice and Creole bases. The Company intends to repair the damage at the Intracoastal City base as well as the minor damage at its other facilities.
In response to the hurricane damage, the Company has increased flight activities from its operations headquarters located at Acadiana Regional Airport in New Iberia, Louisiana and consolidated flight activities at its remaining shorebase facilities. In addition, the Company is expanding its shorebase facility located at Galliano, Louisiana in response to the unavailability of the Venice facility. Despite the disruption caused by the hurricanes, the Company is currently meeting all of its customers’ needs for flight services from its remaining facilities.
Offshore Logistics, Inc. is a major provider of helicopter transportation services to the oil and gas industry worldwide. Through its subsidiaries, affiliates and joint ventures, the Company provides transportation services in most oil and gas producing regions including the United States Gulf of Mexico and Alaska, the North Sea, Africa, Mexico, South America, Australia, Russia, Egypt and the Far East. The Company’s Common Stock is traded on the New York Stock Exchange under the symbol OLG.
