PHI (PHIG) 8-K Results of Operations and Financial Condition

Exhibit 99.1

	News Release
CONTACT:	Michael J. McCann
	CFO and Treasurer
	(337) 235-2452

FOR IMMEDIATE RELEASE

PETROLEUM HELICOPTERS, INC. ANNOUNCES RESULTS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2005

     LAFAYETTE, LA — November 7, 2005 — Petroleum Helicopters, Inc. (“PHI”) today reported net earnings of $5.5 million ($0.53 per diluted share) on operating revenues of $100.0 million for the quarter ended September 30, 2005. For the same period of 2004, PHI reported net earnings of $2.7 million ($0.48 per diluted share) on operating revenues of $77.7 million. Fully diluted shares outstanding at September 30, 2005, were 10,295,000, compared to 5,486,000 at September 30, 2004.

     For the nine months ended September 30, 2005, net earnings were $7.8 million ($1.06 per diluted share) on operating revenues of $261.0 million. This compares to net earnings of $3.8 million ($0.69 per diluted share) on operating revenues of $214.9 million for the same nine-month period in 2004. Average fully diluted shares outstanding for the nine months ended September 30, 2005, were 7,314,000 compared to 5,486,000 for the nine months ended September 30, 2004.

     PHI also reported that during the quarter two significant hurricanes affected operations. Hurricane Katrina made landfall in southeastern Louisiana on August 29, 2005 and caused substantial flooding at the base in Boothville, Louisiana which is expected to be out of service for approximately twelve months as repairs are made. Other bases incurred some damage, all of which is expected to be repaired in the next several months. Flight hours were adversely affected initially as aircraft were evacuated and parked until the storm passed. When flights resumed, there was an increase in flight hours as customers began assessing damage and making repairs to facilities in the Gulf of Mexico. Additionally, the Air Medical segment experienced higher than normal flight activity while assisting with the evacuation of New Orleans following the hurricane.

     Additionally, on September 24, 2005, Hurricane Rita made landfall in southwestern Louisiana destroying the base in Cameron, Louisiana and causing flooding and wind damage at other bases. Initially, flight hours were also adversely affected by this storm, but once flights resumed, they returned to post-Katrina activity levels. The Air Medical segment also experienced additional flight activity both before and after Hurricane Rita related to the evacuation of certain areas of Texas.

     Operations at bases that are currently out of service have been relocated to other bases that were unaffected or did not sustain significant damage. All employees were accounted for and there were no injuries reported. All aircraft were evacuated prior to both storms, and as a result there was no damage to aircraft. PHI expects that substantially all of the damage incurred at all bases will be covered by insurance, and is discussed in more detail in Form 10Q.

     Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “anticipate,” “estimate,” “project,” “intend,” “expect,” “should,” “believe,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the Company’s SEC filings.

PHI provides helicopter transportation and related services to a broad range of customers including the oil and gas industry, air medical industry and also provides third-party maintenance services to select customers. PHI Common Stock is traded on The Nasdaq National Market System (symbols PHEL and PHELK).

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PETROLEUM HELICOPTERS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2005		2004		2005		2004
Operating revenues	$	100,018	$	77,733	$	261,040	$	214,892
Gain on disposition of property and equipment, net		26		1,091		486		2,271
Other		861		76		1,155		221
		100,905		78,900		262,681		217,384
Expenses:
Direct expenses		80,184		63,805		217,115		179,138
Selling, general and administrative expenses		6,561		5,403		17,263		16,157
Interest expense		5,061		5,026		15,337		15,052
		91,806		74,234		249,715		210,347
Earnings before income taxes		9,099		4,666		12,966		7,037
Income taxes		3,639		2,007		5,186		3,262
Net earnings	$	5,460	$	2,659	$	7,780	$	3,775
Weighted average shares outstanding:
Basic		10,271		5,383		7,288		5,383
Diluted		10,295		5,486		7,314		5,486
Net earnings per share
Basic	$	0.53	$	0.49	$	1.07	$	0.70
Diluted	$	0.53	$	0.48	$	1.06	$	0.69

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Summarized financial information concerning the Company’s reportable operating segments for the quarter and nine months ended September 30, 2005 and 2004 is as follows:

	Quarter Ended						Nine Months Ended
	September 30,						September 30,
	2005			2004			2005			2004
	(Thousands of dollars)						(Thousands of dollars)
Segment operating revenues
Domestic Oil and Gas	$	58,952		$	48,081		$	155,392		$	133,660
Air Medical		33,905			21,441			82,989			55,919
International		6,766			5,766			19,565			16,936
Technical Services		395			2,445			3,094			8,377
Total operating revenues		100,018			77,733			261,040			214,892
Segment direct expenses
Domestic Oil and Gas		46,773			38,762			126,116			111,407
Air Medical		28,701			18,894			75,799			46,562
International		4,358			4,094			12,824			13,847
Technical Services		352			2,055			2,376			7,322
Total direct expenses		80,184			63,805			217,115			179,138
Segment selling, general and administrative expenses
Domestic Oil and Gas		256			113			704			1,379
Air Medical		1,741			1,866			4,645			5,579
International		118			12			182			36
Technical Services		1			3			5			11
Total selling, general and administrative expenses		2,116			1,994			5,536			7,005
Total direct and selling, general and administrative expenses		82,300			65,799			222,651			186,143
Net segment profit
Domestic Oil and Gas		11,923			9,206			28,572			20,874
Air Medical		3,463			681			2,545			3,778
International		2,290			1,660			6,559			3,053
Technical Services		42			387			713			1,044
Total		17,718			11,934			38,389			28,749
Other, net		887			1,167			1,641			2,492
Unallocated selling, general and administrative costs		(4,445	)		(3,409	)		(11,727	)		(9,152	)
Interest expense		(5,061	)		(5,026	)		(15,337	)		(15,052	)
Earnings before income taxes	$	9,099		$	4,666		$	12,966		$	7,037

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