BOURBON: First Half Year 2009 Revenues up 11.2%
Chairman and Chief Executive of BOURBON, said, “the oil industry is looking
to control capital expenditure and operating costs and this has led to an oil
services market that is temporarily dominated by short term contracts and a
reduction in usage and pricing. Nevertheless, even in this context, BOURBON’s
innovative and high performance vessels are maintaining high usage rates and
will be the first to benefit from the expected upturn in business, both in
exploration-development as well as in maintaining production in existing
fields.”
2009 FIRST HALF REVENUES
(EUR millions) Second Quarter
Q2 2009 Q2 2008 Change at current
exchange rates
Offshore Division 205 .7 148.2 38.8%
of which Marine Services 171.6 116,1 47.7%
of which Subsea Services 34.1 32.1 6.4%
Bulk Division 30.6 67.8 -54.8%
Other 7.2 6.0 20.0%
BOURBON TOTAL 243.5 222.0 9.7%
(EUR millions) First Half
H1 2009 H1 2008 Change at Change at
current constant
exchange exchange
rates rates
Offshore Division 407.7 285.0 43.1% 29.7%
of which Marine Services 338.2 228.7 47.9%
of which Subsea Services 69.4 56.3 23.3%
Bulk Division 60.5 133.4 -54.6% -60.5%
Other 13.9 15.3 -8.8% -12.9%
BOURBON TOTAL 482.1 433.6 11.2% 0.4%
First half revenues amounted to
half 2008.
The dollar strengthened 15% against the euro with the dollar/euro
exchange rate at 1.33 during the first half year compared with 1.53 for the
first half of 2008.
At constant exchange rates, revenues were practically stable year on year
with strong growth in the Offshore Division compensating for a fall in the
Bulk Division.
OFFSHORE DIVISION
Year on year, revenues for the Offshore Division in the first half year
were up 43.1% (+29.7% at constant exchange rates) to
increase in revenues is mainly due to the full impact of the vessels
commissioned in 2008 and the deliveries of 13 supply vessels (including 10
vessels in the “Bourbon Liberty” series) and 25 crew boats during the half
year.
Given the current climate where clients are limiting their capital
expenditure for 2009 and are resorting to shorter term charters in the
expectation of a fall in rates, the North Sea and Mexican Gulf spot markets
are suffering from an over-capacity in tonnage, as in the Asian regional
market. In the face of these trends and in expectation of an upturn in
business, BOURBON benefits from its quality fleet with its innovative design
and strong productivity that are bringing down costs for clients. BOURBON
also benefits from its high exposure in
affected than elsewhere in the world.
(EUR millions) Q2 2009 Q2 2008 Change Change
(EURm) %
Marine Services 171.6 116.1 55.5 47.7
Subsea Services 34.1 32.1 2.0 6.4
TOTAL 205.7 148.2 57.5 38.8
Of which:
BOURBON vessels 184.5 125.3 59.3 47.3
Chartered vessels 21.2 23.0 (1.8) (7.8)
(EUR millions) H1 2009 H1 2008 Change Change
(EURm) %
Marine Services 338.2 228.7 109.6 47.9
Subsea Services 69.4 56.3 13.1 23.3
TOTAL 407.7 285.0 122.7 43.1
Of which:
BOURBON vessels 363.8 242.9 121.0 49.8
Chartered vessels 43.8 42.1 1.7 4.1
Marine Services first half year revenues surged 47.9%. This activity has
benefited from delivery of 23 new supply vessels and 42 new crew boats over
the last twelve months as well as a boost from the renewal of existing
contracts. BOURBON has, in particular, taken delivery to date of 22 “Bourbon
Liberty” vessels that are greatly appreciated by clients and which are to be
assigned to the offshore continental replacement market.
Subsea Services continued to expand with 23.3% growth despite a fall in
revenues year on year due to vessel chartering. A new IMR vessel has just
been commissioned.
Breakdown of the Offshore Division's revenues
by geographical region:
Second Quarter First Half
(EUR millions) Q2 2009 Q2 2008 Change H1 2009 H1 2008 Change
% %
Offshore Division 205.7 148.2 38.8 407.7 285.0 43.1
Africa 136.6 102.9 32.8 271.1 194.9 39.1
Europe & Med./Middle East 32.5 26.5 22.6 65.9 52.8 24.9
Asia 22.3 8.8 154.4 43.7 16.5 165.3
American continent 14.3 10.1 41.9 26.9 20.8 29.2
BOURBON earns 67% of its revenues from
partnership with its main markets (
its modern high performance fleet have led to a strong growth in revenues
that has been enhanced by the start of replacement of old obsolete vessels
with Bourbon Liberty class vessels.
In spite of the context of gradually less favorable market conditions,
growth in
Generally speaking, the availability of our new and innovative fleet and
the quality of our local operations are bringing robust growth both on a
geographical level (e.g.
in terms of diversifying our client portfolio (e.g. Foxtrot, Gazprom, Shell
Qatar and Schlumberger and Chevron Nigeria).
BULK DIVISION
The slump in the Bulk Division’s 2009 first half revenues to
million
down 4 full time equivalent vessels) and the sharp drop in freight rates
(-75%), cushioned to some extent by the dollar’s appreciation against the
euro.
In the course of the half year the Bulk Division took delivery of 4
vessels including 3 Supramax and a cement carrier, which brings the owned
fleet up to 9 vessels.
During the second quarter the Baltic Supramax Index (BSI) rose from
10,875 $/d (Q1 2009 average) to an average of 16,503 $/d.
Due to its strategy of long term commitments to its clients, BOURBON’s
Bulk Division is able to smooth out market fluctuations over time.
OUTLOOK
Offshore Division
In spite of uncertainties as to the impact of the economic upturn on the
demand for oil and the accelerating fall in oil field production following
capital expenditure cuts, the oil and gas services activity is expected to
grow over the medium term. BOURBON is well positioned today to face up to the
effects of excess capacity and to take full advantage of the future effects
of the business upturn.
Its modern and high productivity fleet helps minimize customer costs and
bring to the continental offshore market substitution vessels with the same
specifications as those operating in deep offshore.
Consequently, the progress made in implementing the Horizon 2012 Plan in
2008 and continuing into the first half of 2009 will ensure that the plan’s
objectives are achieved.
Bulk Division
The current levels of the Bulk Division market should hold up during the
second half year 2009. Beyond that the key elements that will dictate market
conditions, and which are so difficult to assess, will be the demand for
freight, the rate of delivery of new vessels and the effective rate of
demolition of old vessels. The new vessels commissioned during the first half
year will have a full impact on the Bulk Division’s activity in the second
half.
BOURBON
2009 financial performance will not be affected significantly by
movements in the euro/dollar exchange rate due to forward sales of dollars at
a rate of
FINANCIAL CALENDAR
- Presentation of first half 2009 results August 26, 2009
- Third quarter 2009 revenue release November 9, 2009
- Fourth quarter and full-year 2009 revenue release February 10, 2010
- Presentation of 2009 annual results March 17, 2010
APPENDICES
BOURBON QUARTERLY DATA
2009 2008
(EUR millions) Q2 Q1 Q4 Q3 Q2 Q1
Offshore Division 205.7 202.2 209.1 178.0 148.2 136.8
Marine Services 171.6 166.7 170.6 140.2 116.1 112.5
Subsea Services 34.1 35.3 38.5 37.7 32.1 24.2
Bulk Division 30.6 29.9 44.0 57.4 67.8 65.6
Other 7.2 6.7 5.1 4.1 6.0 9.3
BOURBON TOTAL 243.5 238.7 258.2 239.5 222.0 2 11.7
KEY INDICATORS Q2 2009 Q2 2008
Average USD exchange rate for the quarter (EUR) 1.36 1.56
USD exchange rate at closing on June 30 (EUR) 1.41 1.57
Average Brent price for the quarter ($/bl) 59 123
Average Baltic Supramax Index for the quarter ($/day) 16,503 60,461
The average euro/dollar exchange rate in first half 2009 was
compared with
The BSI index showed an average value of
year 2009, against
The average price for Brent was
to
About BOURBON
As at
staff of 5,700 skilled professionals, a fleet of 293 vessels in operation and
176 vessels on order.
Under the Horizon 2012 plan, BOURBON intends to become the leader in
modern offshore oil and gas marine services by offering the most demanding
clients worldwide, a full line of innovative, high performance and
new-generation vessels and an expanded offer of Subsea Services.
BOURBON also specializes in bulk transport and protects the French
coastline for the French Navy.
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 and in
the SBF 120 and Dow Jones Stoxx 600 indices.
http://www.bourbon-online.com
Contacts:
Publicis Consultants / Press Relations
Stephanie Elbaz +33(0)157-32-85-92
stephanie.elbaz@consultants.publicis.fr
Elodie Woillez +33(0)157-32-86-97
elodie.woillez@consultants.publicis.fr
BOURBON
Investors-Analysts-Shareholders Relations
Patrick Mangaud +33(0)1-40-13-86-09
patrick.mangaud@bourbon-online.com
Communication Department
Christa Roqueblave +33(0)1-40-13-86-06
christa.roqueblave@bourbon-online.com
SOURCE BOURBON MANAGEMENT