Babcock sells oil & gas business to CHC Group for £10m

Defence contractor Babcock International said it had sold its oil and gas aviation business to CHC Group for £10m as part of its disposal programme to cut debt.

The Aberdeen-based business provided offshore oil and gas crew transportation services in the UK, Denmark and Australia and generated revenue for the year to March 31 of £154m and a pre-tax loss of £2m and underlying operating profit of £2m.

At March 31, 2021, it had gross assets of £256m net assets excluding cash of £21m and net lease liabilities of £142m.

It is headquartered in Aberdeen, UK, and employs over 500 people and operates around 30 aircraft across its three locations.

Babcock is aiming to generate at least £400m from disposals.