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BOURBON 2014 1st Quarter Revenues Were EUR320.0 Million, an Increase of 7.9% at Constant Exchange Rates (2.9% at Current Rates)

April 30, 2014

BOURBON confirms its objective of 8-10% growth in revenues for 2014 with a slight increase in the EBITDAR/revenue margin

PARIS, April 30, 2014 /PRNewswire/ –

        - Quarterly revenues rose 7.9% (at constant rates) partly due to a 7.1%
          increase in the size of the fleet. 1st quarter activities were impacted sequentially
          by seasonal effects in the North Sea and in South East Asia.
        - The fleet utilization rate excluding Crewboats was over 90%, helped by
          stronger activity in the shallow market in West Africa.
        - Average daily rates stable overall, with a strong increase in Subsea Services
          (+12.4%) and smaller increases in the Deepwater and Crewboat segments, partly due to
          vessel mix and geographic effects.
        - Foreign exchange rate movements continued to have an impact on revenues,
          partly offsetting the addition of new vessels in some segments and improvements in
          average daily rates and utilization rates in others.

Consolidated revenues for the 1st quarter of 2014 were established for the first time
according to the new accounting standards IFRS 10, IFRS 11 and IFRS 12 relating to
consolidation which became mandatory as of January 1, 2014. Specifically, joint ventures
on which BOURBON has joint control are now consolidated using the equity method which
replaces the proportionate consolidation method. Comparative figures are restated
accordingly.

The financial information is presented by Activity and by segment based on the
internal reporting system and shows internal segment information used by the principal
operating decision maker to manage and measure the performance of BOURBON (IFRS 8). The
principles of internal reporting do not reflect the application of the new IFRS 10, IFRS
11 and IFRS 12. Consequently, joint ventures are still proportionately consolidated, as in
previous years.

                                                             Quarter
                                                                increment increment
                                                                       Q1        Q1
                                                                2014/2013 2014/2013
                                                                  Current  Constant
        In millions of euros, except as noted Q1 2014 Q1 2013       rates     rates Q4 2013
        Marine Services                         270.3   258.5       +4.6%             270.3
        Deepwater offshore vessels               93.6    93.0       +0.7%              95.7
        Shallow water offshore vessels          105.1    92.8      +13.3%             100.0
        Crewboats                                71.6    72.8       -1.6%              74.7
        Subsea Services                          52.0    51.6       +0.8%              55.4
        Other                                     4.7     4.9       -4.3%               5.8
        Total revenues by Activity/Segment      327.1   315.1       +3.8%     +8.8%   331.6
        Adjustments **                          (7.0)   (4.2)                         (6.0)
        GROUP TOTAL                             320.0   310.9       +2.9%     +7.9%   325.6
        Number of vessels (end of period) *       498     465 +33 vessels               485
        Average utilization rate excl.
        Crewboats                               90.6%   88.7%    +1.9 pts             90.1%
        Average daily rate excl. Crewboats
        (in US$/d)                             19,497  19,427       +0.4%            19,329

* Vessels operated by BOURBON (including vessels owned or on bareboat charter)

** effect of consolidation of joint ventures using the equity method

“Sequentially, the first quarter saw a contrast in results between different segments,
with satisfactory performance in shallow water and weaker performance in Deepwater and
Crewboats. In Subsea, activity was supported by a utilization rate of more than 94%,” says
Christian Lefevre, Chief Executive Officer of BOURBON. “Sequential revenues were impacted
by seasonal effects while year on year results were impacted by foreign exchange rate
movements. The trend in average daily rates is still positive and we anticipate an
increase in activity for the rest of 2014.”

MARINE SERVICES

                                                      Quarter
                                                         increment
                                                         Q1 2014 /
                                         Q1 2014 Q1 2013   Q1 2013 Q4 2013
        Revenues (in millions of euros)    270.3   258.5     +4.6%   270.3
        Number of vessels (end of                              +34
        period)*                             479     445   vessels     466
        Average utilization rate           82.4%   83.9%  -1.5 pts   83.3%

* Vessels operated by BOURBON (including vessels owned or on bareboat charter)

The operational performance in the Deepwater and Shallow water segments in the 1st
quarter were partially offset by the negative effect of foreign exchange rate movements
and a weaker utilization rate in the Crewboats segment. Revenues were up 4.6% in the 1st
quarter 2014 compared with the same period last year, due in part to a large number of
deliveries during the past year. Seasonal effects in the North Sea and South East Asia
impacted results in the 1st quarter compared with the 4th quarter of 2013

Marine Services indicators by segment

Deepwater offshore vessels

                                                      Quarter
                                                         increment
                                                         Q1 2014 /
                                          Q1 2014 Q1 2013   Q1 2013 Q4 2013
        Revenues (in millions of euros)     93.6    93.0     +0.7%    95.7
        Number of vessels (end of
        period)*                              73      73 No change      72
        Average utilization rate           88.6%   86.6%    +2 pts   90.1%
        Average daily rate (in US$/day)   22,839  21,392     +6.8%  22,241

* Vessels operated by BOURBON (including vessels owned or on bareboat charter)

Market conditions overall in the first quarter contributed to higher utilization rates
and higher average daily rates compared with the same period last year. Several new
contracts and extensions of existing contracts were secured at higher rates as well as the
addition of some larger PSV into the segment. The sequential decline in utilization rates
compared with the 4th quarter of 2013 was partly due to seasonal effects in the North Sea
and to a lesser degree due to a higher number of classification drydocks, which were at a
similar level compared with the same period last year. The increases in both average daily
rates and utilization rates have been partly offset by the impact of foreign exchange rate
movements.

Shallow water offshore vessels

                                                      Quarter
                                                         increment
                                                         Q1 2014 /
                                          Q1 2014 Q1 2013   Q1 2013 Q4 2013
        Revenues (in millions of euros)    105.1    92.8    +13.3%   100.0
        Number of vessels (end of                              +25
        period)*                             130     105   vessels     122
        Average utilization rate           91.2%   89.8%  +1.4 pts   90.2%
        Average daily rate (in US$/day)   14,199  14,315     -0.8%  14,013

* Vessels operated by BOURBON (including vessels owned or on bareboat charter)

The trend for modern and efficient vessel demand is still present in the Shallow water
market. The revenue growth in the first quarter of 2014 compared with the same period last
year was largely driven by vessel deliveries and an increase in the utilization rate.
Revenues also benefited from reduced classification drydocks in the quarter both
sequentially and year on year. Average daily rates declined slightly as newbuild vessels
were almost exclusively allocated to the Asia and Mediterranean/Middle East/India regions
where daily rates are generally lower than those of other regions such as West Africa.

Crewboats

                                                      Quarter
                                                         increment
                                                         Q1 2014 /
                                          Q1 2014 Q1 2013   Q1 2013 Q4 2013
        Revenues (in millions of euros)     71.6    72.8     -1.6%    74.7
        Number of vessels (end of                               +9
        period)                              276     267   vessels     272
        Average utilization rate           76.6%   80.8%  -4.2 pts   78.4%
        Average daily rate (in US$/day)    5,323   5,034     +5.7%   5,309

The reduced utilization rates both year on year and sequentially were partly due to
slower growth conditions in a competitive market in West Africa. Average daily rates
improved year on year due to the addition of FSIV vessels which earn higher daily rates
than other smaller crewboats.

SUBSEA SERVICES

                                                      Quarter
                                                         increment
                                                         Q1 2014 /
                                         Q1 2014 Q1 2013   Q1 2013 Q4 2013
        Revenues (in millions of euros)     52.0    51.6     +0.8%    55.4
        Number of vessels (end of
        period) *                             18      19 -1 vessel      18
        Average utilization rate           94.4%   90.6%  +3.8 pts   89.2%
        Average daily rate (in US$/day)   45,407  40,405    +12.4%  43,120

* Vessels operated by BOURBON (including vessels owned or on bareboat charter)

IMR activity in West Africa has continued to show demand growth, particularly among
contractors. During the first quarter, 2 new vessels (the 4th and 5th vessels in the
Bourbon Evolution series) entered the fleet yet had no impact on revenues due to the
timing of their availability. In addition, Subsea services continued to align its fleet
positioning strategy with the transfer of 2 smaller Subsea Services vessels to Marine
Services, which had a negative impact on revenues and a positive impact on average daily
rates due to the mix effect.

OTHER

                                                      Quarter
                                                         increment
                                                         Q1 2014 /
                                         Q1 2014 Q1 2013    Q1 2013 Q4 2013
        Revenues (in millions of euros)     4.7     4.9      -4.3%     5.8

Using chartered vessels has two advantages for BOURBON: it makes it possible to meet
client demands and generate contracts while new vessels are being built and added to the
fleet. Using chartered vessels also enables BOURBON to offer vessels that are not part of
its regular line of services when needed for global calls for tenders. Volatility of
“Other” revenues is largely due to the variation in the number of chartered vessels during
the period.

OUTLOOK

The demand for offshore vessels continues to grow, helped by a relatively stable oil
price during the past several years.

Oil & gas companies have launched capital discipline campaigns impacting mostly
onshore projects while in the offshore market, project focus is shifting towards high
return projects and enhanced oil recovery from existing fields.

Even though their have been fewer awards to contractors from oil & gas companies,
their backlog is still strong and we do not foresee an impact in 2014 on offshore Marine
and Subsea Services Activities.

Deepwater offshore vessel demand growth is being driven by high return projects. The
high number of large PSVs coming out of the shipyards could negatively affect the spot
market. This should have only a small impact on BOURBON, taking into account the high
contractualization rate of its PSVs.

The demand in the shallow water offshore market remains driven by the renewal of the
fleet with modern, safe and efficient vessels, strengthened further by projects using
enhanced oil recovery on existing fields and by new jack ups entering into service.

The Bourbon Evolution 800 series is progressively finding its place and is becoming a
reference for IMR duties for deep offshore fields, reducing oil & gas field operating
costs through high technical availability and low fuel consumption. The first 4 vessels in
this series are currently under contract. The subsea market remains supported by the
growth of subsea wellheads to be delivered.

MAJOR OPERATIONS AND HIGHLIGHTS

In line with the “Transforming for beyond” “Asset Smart” action plan, a total of 21
vessels were transferred to ICBCL during 2013, as part of the sale and bareboat charter
agreement for up to 51 vessels signed with ICBCL on April 9, 2013. Thus far in 2014, 15
additional vessels have been transferred (4 Deepwater vessels, 10 Shallow water vessels, 1
Subsea Services vessel) for US$464 million. This brings the total vessels transferred
under the deal with ICBCL to 36 vessels for a total amount of US$986 million.

In the agreement signed in November 2013 with Standard Chartered Bank (“SCB”) for the
sale and bareboat charter of 6 new build vessels, the ownership of the first 3 vessels
were transferred in 2013 for US$65 million and the remaining 3 vessels will be delivered
to SCB during the second half of 2014.

The Company notes that on March 16, 2014, JACCAR HOLDINGS announced its intention to
propose a bid for BOURBON shares at a price of 24 euros (with dividend rights attached)
per share. The main elements of this proposed offer can be found in the press release
issued by BOURBON on March 17, 2014. On March 17, 2014, the Autorite des marches
financiers (AMF) published a decision indicating that the announcement of the offer marks
the start of the pre-offer period during which the provisions relating to tradings
(Articles 231-38 to 231-43 of the General Regulation of the AMF) and the reports of
transactions (Articles 231-44 to 231-52 the General Regulations of the AMF) are applicable
to shares in BOURBON. The draft offer remains subject to review by the AMF.

ADDITIONAL INFORMATION

        - While there was some hedging activity in the first half of 2013, since the
          beginning of the 3rd quarter of this year, BOURBON no longer has any hedging in place.
          At constant exchange rates, 1st quarter 2014 revenues rose 7.9% compared with the same
          period last year
        - BOURBON's results will continue to be affected by the EUR/US$ exchange rate

FINANCIAL CALENDAR

        - Shareholders' Meeting May 20, 2014
        - 2014 1st Half Results press release and presentation September 3, 2014
        - 2014 3rd Quarter Revenues press release November 6, 2014

APPENDIX

Quarterly revenue breakdown

        In millions of euros                 2014            2013
                                             Q1         Q4    Q3    Q2    Q1
        Marine Services                      270.3   270.3 267.0 268.7 258.5
        Deepwater offshore vessels           93.6     95.7 100.6 102.3  93.0
        Shallow water offshore vessels       105.1   100.0  93.0  90.1  92.8
        Crewboats                            71.6     74.7  73.4  76.3  72.8
        Subsea Services                      52.0     55.4  58.9  57.3  51.6
        Other                                4.7       5.8   6.5   6.7   4.9
        Total revenues by Activity/Segment   327.1   331.6 332.4 332.8 315.1
        Adjustments *                        (7.0)   (6.0) (7.8) (4.3) (4.2)
        GROUP TOTAL                          320.0   325.6 324.6 328.5 310.9

* effect of consolidation of joint ventures using the equity method

Quarterly average utilization rates for the BOURBON offshore fleet

        In %                                    2014               2013
                                                Q1         Q4    Q3    Q2    Q1
        Marine Services                         82.4     83.3  82.4  82.4  83.9
        Deepwater offshore vessels              88.6     90.1  88.8  90.0  86.6
        Shallow water offshore vessels          91.2     90.2  90.2  89.1  89.8
        Crewboats                               76.6     78.4  77.5  77.7  80.8
        Subsea Services                         94.4     89.2  93.6  88.0  90.6
        "Total fleet excluding Crewboats"       90.6     90.1  90.0  89.3  88.7
        "Total fleet" average utilization
        rate                                    82.8     83.5  82.9  82.6  84.2

Quarterly average daily rates for the BOURBON offshore fleet

        In US$/day                              2014               2013
                                                Q1           Q4     Q3     Q2     Q1
        Deepwater offshore vessels              22,839   22,241 22,683 22,092 21,392
        Shallow water offshore vessels          14,199   14,013 13,728 13,850 14,315
        Crewboats                               5,323     5,309  5,204  5,122  5,034
        Subsea Services                         45,407   43,120 41,331 40,644 40,405
        "Total fleet excluding Crewboats"
        average daily rate                      19,497   19,329 19,573 19,458 19,427

Quarterly deliveries of vessels

        In number of vessels              2014                2013
                                          Q1         Q4    Q3    Q2    Q1
        Marine Services                   12         10     9     9     9
        Deepwater offshore vessels        2           1     0     1     1
        Shallow water offshore vessels    6           5     8     4     3
        Crewboats                         4           4     1     4     5
        Subsea Services                   2           0     0     0     1
        FLEET TOTAL                       14         10     9     9    10

Breakdown of BOURBON revenues by geographical region

        In millions of euros                2014                2013
                                            Q1         Q4    Q3    Q2     Q1
        Africa                              191.1   186.1 186.8 190.5  187.0
        Europe & Mediterranean/Middle East  52.5     56.7  63.3  57.7   50.2
        Americas                            43.9     46.7  44.6  49.9   46.3
        Asia                                39.6     42.0  37.7  34.6   31.6

Other key indicators

Quarterly breakdown

                                                2014              2013
                                                Q1         Q4    Q3    Q2    Q1
        Average EUR/US$ exchange rate for the
        quarter (in EUR)                        1.37     1.36  1.32  1.31  1.32
        EUR/US$ exchange rate at closing (in
        EUR)                                    1.38     1.38  1.35  1.31  1.28
        Average price of Brent for the
        quarter (in US$/bbl)                    108       109   110   102   112

About BOURBON

As a leader in offshore marine services, BOURBON offers the most demanding oil & gas
companies a comprehensive range of surface and subsea marine services for offshore oil &
gas fields and wind farms. These services are based on an extensive range of
latest-generation vessels and the expertise of more than 11,000 competent professionals.
The Group provides local service through its 28 operating subsidiaries, close to clients
and their operations, and it guarantees the highest standards of service quality and
safety worldwide.

BOURBON has two Activities (Marine Services and Subsea Services) and also protects the
French coastline for the French Navy.

In 2013, BOURBON posted revenues of EUR1.312 billion and as of March 31, 2013, it
operated a fleet of 498 vessels.

Under its “BOURBON 2015 Leadership Strategy” plan, the Group is investing in a large
fleet of innovative and high-performance offshore vessels built-in series.

The latest action plan “Transforming for beyond” in its financial aspect aims at the
sale and bareboat chartering for 10 years of US$2.5 billion of new or existing vessels.
The first phase of the program has been signed for 51 vessels and up to US$1.5 billion
with ICBC Financial Leasing.

Through “Transforming for beyond”, BOURBON wants to enlarge the scope of achievable
strategies beyond 2015 and be ready to deliver growth and value creation further.

Classified by ICB (Industry Classification Benchmark) in the “Oil Services” sector,
BOURBON is listed for trading on Euronext Paris, Compartment A, and is included in the
Deferred Settlement Service SRD, in the SBF 120 and CAC Mid 60 index.

            CONTACTS
        BOURBON
        Investors - Analysts - Shareholders Relations
        James Fraser, CFA +33(0)4-91-13-35-45 - james.fraser@bourbon-online.com
        Communication Department
        Christelle Loisel +33(0)1-40-13-86-06 - christelle.loisel@bourbon-online.com

        PR Agency : Publicis Consultants
        Jerome Goaer +33(0)1-44-82-46-24 - jerome.goaer@consultants.publicis.fr
        Veronique Duhoux +33(0)1-44-82-46-33 - veronique.duhoux@consultants.publicis.fr
        Vilizara Lazarova +33(0)1-44-82-46-34 - vilizara.lazarova@consultants.publicis.fr

http://www.bourbon-online.com

SOURCE BOURBON


Source: PR Newswire



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