CHC Helicopter flying high

CHC Helicopter Corporation (NYSE: FLI), headquartered in British Columbia, is the world's largest supplier of helicopter services to the oil and gas exploration and drilling industries. The company recently posted impressive second quarter (2Q) FY 2008 results that showed revenue up 17% and operating income up 21%. Operating income increased at the same time as corporate expenses declined. Net earnings for 2Q rose 20%, driven in large part by global operations revenue increase of 34% and European operations revenue increase of 14%.

CHC Helicopter took delivery of 8 new aircraft during the quarter, with 16 more to be delivered in FY 2008, and an additional 61 aircraft on target for delivery over the next 5 years. In order to service its expanding fleet, CHC is expanding its own maintenance capabilities at its new maintenance facility currently under construction. Because CHC is in the midst of a growth period, leasing expenses continue to increase, as do interest expenses and debt levels. These expense increases continue to be more than offset by increases in flying (billable) hours and a growing customer base.

Many of CHC's customers do business in risky areas of the world. Conservative investors will want to take a close look at the company's risk management policies while performing their normal due diligence.