Global Vectra Helicorp inks two-year ATF contract with RIL, ONGC
Mumbai-based Global Vectra Helicorp, Country’s largest private sector offshore helicopter company, has entered into a two-year aviation turbine fuel (ATF) contract with Reliance Industries and ONGC to hedge its jet fuel purchases.
The Reserve Bank of India (RBI) had allowed the Indian aviation industry to hedge their ATF price risks as early as May 2007, when crude prices were trading at nearly $70 per barrel.
In the last eight months, crude prices have risen by over 70% to around $135 per barrel.
Of the global population of around 25,000 helicopters, around 200 helicopters are operating in India, of which 150 are in the non-scheduled segment.
At present, around 50 helicopters are used for dedicated offshore oil exploration and production spread on the east and west coast. While, about 40 helicopters are used on the west coast as Mumbai High is the largest producing field in India.
Since its IPO in November 2006, Global Vectra Helcorp Ltd. has successfully enhanced its services towards their top of the line oil and gas exploring clientele.
The company has posted a net loss of Rs4.30 crore for the year ended March 31, 2008, as compared to net profit of Rs 18.87 crore posted in the same period in FY07.
Market analysts said that company’s profitability recently fell due to increasing fuel costs which has impacted the aviation industry worldwide.