73887--5/22/2007--Bristow_Group

related topics

{gas, price, oil}

{financial, litigation, operation}

{operation, international, foreign}

{competitive, industry, competition}

{cost, regulation, environmental}

{cost, contract, operation}

{regulation, government, change}

{customer, product, revenue}

{personnel, key, retain}

{acquisition, growth, future}

{control, financial, internal}

{system, service, information}

{condition, economic, financial}

{cost, operation, labor}

Risks Relating to Our Customers and Contracts The demand for our services is substantially dependent on the level of offshore oil and gas exploration, development and production activity. The implementation by our customers of cost-saving measures could reduce the demand for our services. We are highly dependent upon the level of activity in North America and the North Sea. Our industry is highly competitive and cyclical, with intense price competition. We depend on a small number of large offshore energy industry customers for a significant portion of our revenues. Our contracts generally can be terminated or downsized by our customers without penalty. We may not be able to obtain customer contracts with acceptable terms covering some of our new helicopters, and some of our new helicopters may replace existing helicopters already under contract, which could adversely affect the utilization of our existing fleet. Risks Relating to Our Internal Review and Governmental Investigations The SEC investigation, any related proceedings in other countries and the consequences of the activities identified in the Internal Review could result in civil or criminal proceedings, the imposition of fines and penalties, the commencement of third-party litigation, the incurrence of expenses, the loss of business and other adverse effects on our company. The disclosure and remediation of activities identified in the Internal Review could result in the loss of business relationships and adversely affect our business. The DOJ investigation or any related proceedings in other countries could result in criminal proceedings and the imposition of fines and penalties, the commencement of third-party litigation, the incurrence of expenses, the loss of business and other adverse effects on our company. Risks Relating to Our Business Our future growth depends on the level of international oil and gas activity and our ability to operate outside of North America and the North Sea. In order to grow our business, we may require additional capital in the future, which may not be available to us. Our operations outside of North America and the North Sea are subject to additional risks. Foreign exchange risks and controls may affect our financial position and results of operations. We operate in many international areas through entities that we do not control. Labor problems could adversely affect us. Helicopter operations involve risks that may not be covered by our insurance or may increase our operating costs. We are subject to government regulation that limits foreign ownership of aircraft companies. Actions taken by agencies empowered to enforce governmental regulations could increase our costs and reduce our ability to operate successfully. Our failure to attract and retain qualified personnel could have an adverse affect on us. We face substantial competition in the Helicopter Services and Production Management Services segments. Our operations are subject to weather-related and seasonal fluctuations. Environmental regulations and liabilities may increase our costs and adversely affect us. Our dependence on a small number of helicopter manufacturers poses a significant risk to our business and prospects. A shortfall in availability of aircraft components and parts required for maintenance and repairs of our aircraft and supplier cost increases could adversely affect us.

Full 10-K form ▸

73887--5/22/2007--Bristow_Group_Inc