PHI, Inc. (“PHI”) (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the year ended December 31, 2010.
Oil and Gas segment revenues for 2010 were $345.4 million, compared to $316.2 million for 2009, an increase of $29.2 million or 9%. Segment operating profit was $55.3 million for 2010, compared to $51.3 million for 2009.
Oil and Gas revenues increased primarily due to increased medium and heavy aircraft flight hours and revenue due to increased deepwater activity in the Gulf of Mexico. Approximately 50% of the increase in Oil and Gas segment revenues was a result of increased activity related to the Deepwater Horizon incident. However, there was also a decrease related to some deepwater drilling rigs demobilizing and reduced crews on others as a result of the moratorium. The increase in operating profit was due to the increase in flight activity for the heavy and medium aircraft fleet. Flight hours in the Oil and Gas segment were 114,122 for the year ended December 31, 2010, compared to 111,527 flight hours for the year ended December 31, 2009.
Air Medical segment revenues were $160.5 million for 2010, compared to $160.1 million for 2009, an increase of $0.4 million. Segment operating profit was $10.2 million for 2010, compared to $6.0 million for 2009.
The increase in revenues for the Air Medical segment was primarily related to increased hospital-based contract revenues, partially offset by decreased revenues in the independent provider programs due to decreased patient transports. The decrease in patient transports was substantially due to the closure of certain bases. Decreased direct expenses and decreased selling, general and administrative expenses account for the improvement in operating profit. Flight hours in the Air Medical segment were 33,222 for the year ended December 31, 2010, compared to 33,483 flight hours for the year ended December 31, 2009. Patient transports were 18,480 for 2010, compared to 19,798 for 2009.