BOURBON Revenues up 3.1% Compared with 3rd Quarter 2008, at 246.8 MEUR
– Satisfactory Growth (+16.6%) for Offshore Activity in the 3rd Quarter
Reflecting the High Vessel-Utilization Rate
– BOURBON Revenues up 3.1% Compared With 3rd Quarter 2008, at
Million Euros
“In an uncertain and deteriorated offshore market, BOURBON has stood out
from the field because of the new Bourbon Liberty vessels – clients really
appreciate them for their quality and positive impact on costs,” says Jacques
de Chateauvieux, Chairman and Chief Executive Officer of BOURBON. “Our
clients’ short-term approach to managing their capital expenditure has led to
a temporary increase in short-term contracts as the last few months have not
been favorable to more long-term commitments.”
- THIRD QUARTER 2009 REVENUES
(in millions of euros) Third quarter
Q3 2009 Q3 2008 Change at Change at
current constant
exchange exchange
rates rates
Offshore Division 207.6 178.0 16.6% 9.6%
of which Marine Services 167.5 140.2 19.4%
of which Subsea Services 40.1 37.7 6.3%
Bulk Division 30.5 57.4 -47.0% -49.3%
Other 8.8 4.1 113.8% 110.2%
BOURBON TOTAL 246.8 239.5 3.1% -2.8%
(in millions of euros) First 9 months
2009 2008 Change at Change at
current constant
exchange exchange
rates rates
Offshore Division 615.3 463.0 32.9% 21.9%
of which Marine Services 505.7 368.9 37.1%
of which Subsea Services 109.6 94.1 16.5%
Bulk Division 91.0 190.8 -52.3% -57.2%
Other 22.7 19.4 17.2% 13.9%
BOURBON TOTAL 729.0 673.2 8.3% -0.7%
BOURBON’s third-quarter revenues came to
compared with the same period in 2008 (-2.8% at constant exchange rates), due
to satisfactory growth in the Offshore Division which offset a sharp decline
in the Bulk Division.
In the first 9 months of the year, BOURBON posted revenue growth of 8.3%,
the increase being stronger in the early months of the year, while revenues
were virtually stable at constant exchange rates. The value of the dollar
strengthened by 11% during the period, at
for the same period in 2008.
– OFFSHORE DIVISION
The Offshore Division recorded satisfactory third-quarter growth of 16.6%
(9.6% at constant exchange rates), with revenues totaling
versus
The activity of BOURBON’s directly-owned fleet continued to expand
significantly, up 25.7% for the period, while the chartered vessel business
saw a decline (-39.1%), in line with the Division’s commercial strategy.
This strong growth, achieved in a market that was made more difficult
because of stagnation of demand and numerous deliveries during the period,
was due to:
- the full effect of vessels that came into service at the end
of 2008 and deliveries made since the beginning of 2009;
- the impact of the dollar which continues to be favorable.
The quarter illustrates:
- good activity for our innovative vessels whose high
productivity reduces client costs (90% utilization rate for supply
vessels);
- contract coverage adapted to prevailing price levels, also
reflected in a reduction of long-term contract coverage rates for
supply vessels, at 70% at the end of September compared to 75% at the
end of June 2009.
Over the first 9 months, revenues for the Offshore Division came to
million euros
(in millions Q3 Q3 Change 9 months 9 months Change
of euros) 2009 2008 % 2009 2008 %
Marine Services 167.5 140.2 19.4% 505.7 368.9 37.1%
Subsea Services 40.1 37.7 6.3% 109.6 94.1 16.5%
TOTAL 207.6 178.0 16.6% 615.3 463.0 32.9%
Of which:
BOURBON vessels 192.5 153.2 25.7% 556.3 396.1 40.5%
Chartered vessels 15.1 24.8 -39.1% 58.9 66.9 -11.9%
Marine Services
In the third quarter, the Marine Services activity posted growth of 19.4%
compared with the same quarter in 2008, as a result of new vessels delivered,
generating revenues of
However, market conditions no longer allow the transit cost of the
vessels from their production site (
passed on to the client. This is having some influence on the financial
impact of commissioning these new vessels.
In the first 9 months, revenues grew by 37.1%.
With 15 Liberty PSV and 13 Liberty AHTS currently in operation, their
success among clients in various regions around the world gives us confidence
in the utilization rates of the vessels that will be delivered in the future.
Subsea Services
In the third quarter, growth was limited to 6.3% compared with the third
quarter of 2008, since only one new IMR vessel was delivered in 2009.
This activity serves, in
under development and maintenance in deepwater offshore, sectors in which
clients have postponed some of their capital expenditure.
In the first 9 months of the year, Subsea Services grew by 16.5%,
representing 18% of total revenues for the Offshore Division.
Breakdown of the Offshore Division's revenues by geographical region
3rd quarter 9 months
(in millions Q3 Q3 Change 2009 2008 Change
of euros) 2009 2008 % %
Offshore Division 207.6 178.0 16.6% 615.3 463.0 32.9%
Africa 134.8 118.8 13.4% 405.9 313.7 29.4%
Europe & Med./
Middle East 37.1 33.8 9.6% 102.9 86.6 18.9%
Asia 21.6 13.1 65.3% 65.3 29.5 121.1%
American continent 14.2 12.3 15.4% 41.1 33.1 24.1%
Growth remains strong in
particularly in
In the Mediterranean (
seeing strong development; by contrast, market conditions in the North Sea
are penalizing performance in
In
sales compared with less than 7% the previous year.
– BULK DIVISION
In the third quarter of 2009, BOURBON’s Bulk activity reflected both
market conditions and certain factors specific to BOURBON:
- the market continued the growth that started at the
beginning of the year, stabilizing at around $18,000/20,000 per day for
the supramax;
- BOURBON's caution in the quality of its counterparties for
vessels under Time Charter continued to hamper the possibilities of
medium-term contract coverage for its owned vessels;
- this quarter, BOURBON successfully commissioned a 30,000-ton
self-unloading cement carrier on long-term contract for Lafarge and two
58,000-ton supramax. It has thus benefited from the arrival of six new
directly owned vessels since December 31, 2008;
- in view of the market's very high volatility, BOURBON
continued its policy of low exposure to chartered vessels;
- finally, some long-term contracts at favorable rates came to
an end during the quarter.
In this context, revenues for the third quarter came to
euros
Supramax Index (BSI) decline of 57%.
Over the first 9 months of the year, the Bulk Division recorded a decline
in revenues of 52.3% against the same period in 2008, while the BSI was down
70%.
– OUTLOOK
Offshore Division
The last quarter of the year and the start of 2010 will be marked by
reductions in oil companies’ expenditure as they try to shore up their 2009
results in the face of uncertainty about the future of the oil price.
Since the oil price bottomed out on
barrel at
At the same time, projects that had been put on hold are now being
relaunched in a new context marked by less uncertainty about the impact of
the ongoing economic recovery in emerging markets and by evidence of a faster
decline in production from existing fields.
If this trend is confirmed, it will create the necessary conditions for
recovery in the offshore petroleum activity, after a low point which could
occur during 2010 given the time needed between the relaunch of capital
expenditure and its impact on the demand for service vessels.
This increase in activity will help offset the effects of overcapacity
forecast on large vessels and
In this context, bolstered by its modern and high-productivity fleet,
which helps clients keep their costs down, and the Bourbon Liberty series of
76 vessels, which offers the continental offshore market a substitution
vessel with the same qualities as the vessels operating in deepwater
offshore, BOURBON will be particularly well placed to benefit from this
upturn in the offshore oil business.
Bulk Division
The Bulk Division will take delivery of an additional 58,000-ton supramax
in the last quarter, bringing the directly-owned fleet to twelve vessels at
the end of the year. However, the Horizon 2012 plan has been set back by
significant delays in deliveries of the Panamax ordered in
which will be delivered this year.
While the industry expects the current market rates to be sustained in
the short term, the greatest uncertainty prevails as to what will happen to
rates in 2010. It should nevertheless be noted that the total anticipated
capacity of the fleet actually delivered in 2009 should amount to 45 million
tons, against an initial annual projection of 70 million tons, and that there
has been a record demolition of old vessels, with nearly 15 Mtdwt expected in
2009 compared with only 5 Mtdwt in 2008.
- FINANCIAL CALENDAR
- 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
(in millions of euros) Q3 Q2 Q1 Q4 Q3 Q2 Q1
Offshore Division 207.6 205.7 202.0 209.1 178.0 148.2 136.8
Marine Services 167.5 171.6 166.7 170.6 140.2 116.1 112.5
Subsea Services 40.1 34.1 35.3 38.5 37.7 32.1 24.2
Bulk Division 30.5 30.6 29.9 44.0 57.4 67.8 65.6
Other 8.8 7.2 6.7 5.1 4.1 6.0 9.3
BOURBON TOTAL 246.8 243.5 238.7 258.2 239.5 222.0 211.7
- KEY INDICATORS
Q3 2009 Q3 2008
Average USD exchange rate for the quarter (in EUR) 1.43 1.51
USD exchange rate at closing (in EUR) 1.46 1.43
Average price of Brent for the quarter (in $/b) 67 117
Average Baltic Supramax Index
for the quarter (in $/day) 19,782 45,575
Average euro/dollar parity was
compared with
The BSI average was
with
The average price of Brent was
compared with
About BOURBON
BOURBON is present in over 28 countries with a staff of 6,300 skilled
professionals, a directly-owned fleet of 335 vessels and 141 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.
Contacts
Publicis Consultants / Press Relations
Stéphanie Elbaz +33(0)1-57-32-85-92
stephanie.elbaz@consultants.publicis.fr
Elodie Woillez +33(0)1-57-32-86-97
elodie.woillez@consultants.publicis.fr
BOURBON
Investors - Analysts - Shareholders Relations
Patrick Mangaud +33-(0)1-40-13-86-09
patrick.mangaud@bourbon-online.com
Communications Department
Christa Roqueblave +33(0)1-40-13-86-06
christa.roqueblave@bourbon-online.com
http://www.bourbon-online.com
SOURCE BOURBON MANAGEMENT