×

BOURBON - Press Release: Financial information Q3 and 9 months 2015

PARIS, Nov. 4, 2015 (GLOBE NEWSWIRE) --

BOURBON financial information Q3 and 9 months 2015

Adjusted revenues for first 9 months maintained their resilience with an increase of 6.8% to €1,103 million at current rates (-5.5% at constant rates) in a difficult offshore market

  • 3rd quarter 2015 average utilization rate of over 73% (-5.7 pts versus one year ago) showed good resistance in a very weak market while average daily rates declined 11%, reflecting the lower rates negotiated with clients on long term contracts as well as reduced rates on spot contracts compared with a year ago
  • Positive foreign currency impact enabled 9 month 2015 revenues to reach over €1.1 billion also helped by BOURBON's modern, standardized fleet, combined with its strong worldwide client network and local partnerships
  • Revenues increased in the Americas versus the 3rd quarter 2014 while the most significant impact of the market downturn was felt in Asia, where revenues declined 27% over the same period
  • Compared with the preceding quarter, adjusted revenues decreased 8.3%, impacted by stacked vessels and contracting of vessels at lower rates

In € millions, unless otherwise noted Quarter 9 months
Q3 2015 Q3 2014
(restated)
Var 2015/
2014
Q2 2015 2015 2014
(restated)
Var 2015/
2014
Operational indicators
Number of vessels (FTE)* 502.8 495.8 +1.4% 501.2 501.3 490.6 +2.2%
Number of vessels (end of period)** 507 501 +6 vessels 506 507 501 +6 vessels
Average utilization rate (%) 73.7% 79.4% -5.7 pts 77.1% 76.6% 80.8% -4.2 pts
Average daily rate (US$/day) 11,167 12,604 -11.4% 11,558 11,632 12,292 -5.4%

(*) FTE: Full Time Equivalent.
(**) Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Adjusted Revenues (a)
Marine Services 279.0 289.8 -3.7% 299.8 891.0 841.6 +5.9%
Deepwater offshore vessels 101.9 106.3 -4.1% 109.6 325.3 300.3 +8.3%
Shallow water offshore vessels 107.2 112.9 -5.1% 116.1 346.7 327.8 +5.8%
Crew boats 69.9 70.6 -1.0% 74.2 219.0 213.5 +2.6%
Subsea Services 61.0 65.7 -7.2% 70.9 199.0 176.6 +12.7%
Other 4.1 6.1 -32.8% 4.5 12.9 14.4 -10.2%
Total adjusted revenues
(change at constant rates)
344.1

361.7

-4.9%
-12.9%
375.2

1,102.9

1,032.6

+6.8%
-5.5%
IFRS 11 impact*** (23.8) (20.8) (30.1) (81.4) (49.2)
Group TOTAL 320.2 340.8 -6.0% 345.1 1,021.6 983.4 -3.9%

(***) Effect of consolidation of jointly controlled companies using the equity method.
(a) See page 2.

Average utilization rate (excl. Crew boats) 76.0% 85.8% -9.8 pts 79.5% 79.8% 87.8% -8 pts
Average daily rate (excl. Crew boats US$/d) 17,858 20,247 -11.8% 18,640 18,599 19,728 -5.7%

"In today's market environment, BOURBON remains determined in the search of operational excellence and is focusing on what it can control: safety, cost control initiatives and operational efficiency", says Christian Lefèvre, Chief Executive Officer of BOURBON. "The objectives in the coming quarters will be to maximize the utilization of the fleet by extending the scope of services on the full range of vessels and extend the portfolio of clients thanks to its network and strong partnerships overseas."

(a) Adjusted data:
The adjusted 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). As of January 1, 2015, the internal reporting (and thus the adjusted financial information) records the performance of operational joint ventures on which the group has joint control using the full integration method. Adjusted comparative figures are restated accordingly.

MARINE SERVICES

Quarter 9 months
Q3 2015 Q3 2014
(restated)
Var 2015/
2014
Q2 2015 2015 2014
(restated)
Var 2015/
2014
Adjusted Revenues (in € millions) 279.0 289.8 -3.7% 299.8 891.0 841.6 +5.9%
Number of vessels (end of period)* 484 481 +3 vessels 483 484 481 +3 vessels
Average utilization rate 74.1% 79.4% -5.3 pts 77.4% 76.9% 80.6% -3.7 pts

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

All segments had declines in utilization rates and average daily rates both year on year and sequentially, reflecting the continued difficulty in the offshore services market. Stronger foreign exchange rates and an increase in the size of the fleet contributed to offset the decline of the utilization and daily rates, resulting in an increase in adjusted revenues for the 9 month period.

Marine Services: Deepwater offshore vessels

Quarter 9 months
Q3 2015 Q3 2014
(restated)
Var 2015/
2014
Q2 2015 2015 2014
(restated)
Var 2015/
2014
Adjusted Revenues (in € millions) 101.9 106.3 -4.1% 109.6 325.3 300.3 +8.3%
Number of vessels (end of period)* 86 75 +11 vessels 82 86 75 +11 vessels
Average utilization rate 79.8% 85.7% -5.9 pts 84.0% 83.1% 87.1% -4 pts
Average daily rate (US$/day) 19,518 23,887 -18.3% 20,286 20,543 23,189 -11.4%

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

Adjusted revenues increased more than 8% for the 9 months period compared with the year ago period due to a significant increase in the size of the fleet and a favorable exchange rate, and these two factors combined to help offset a reduction in average utilization and average daily rates. Almost all regions were affected by the downturn.

Compared with the 2nd quarter 2015, the greatest decline in utilization was seen in Asia, while average daily rates declined as new contracts began at lower rates than the expiring contracts. With a 3rd quarter utilization rate of almost 80%, BOURBON has demonstrated strong resistance in a depressed market where some regions have seen more significant reductions in activity than others. There were up to 8 deepwater vessels stacked during the quarter.

Marine Services: Shallow water offshore vessels

Quarter 9 months
Q3 2015 Q3 2014
(restated)
Var 2015/
2014
Q2 2015 2015 2014
(restated)
Var 2015/
2014
Adjusted Revenues (in € millions) 107.2 112.9 -5.1% 116.1 346.7 327.8 +5.8%
Number of vessels (end of period)* 134 135 -1 vessel 138 134 135 -1 vessel
Average utilization rate 75.5% 86.6% -11.1 pts 78.3% 79.4% 88.5% -9.1 pts
Average daily rate (in US$/day) 12,880 14,152 -9.0% 13,507 13,457 14,065 -4.3%

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

Adjusted revenues increased for the 9 months period due to the positive effects of the foreign exchange rates, which helped to offset the declines in the market conditions. Asia had the greatest declines in both average utilization rates and average daily rate over this same period.

During the 3rd quarter 2015, BOURBON sold 4 vessels that are non-conforming with its strategy of diesel electric, DP2 technology. This further concentrates its fleet so that BOURBON is able to leverage its competitive advantage of providing low fuel consumption vessels to its customers.

Compared with the 2nd quarter 2015, all regions showed declines in average utilization rates and average daily rates in the 3rd quarter. There were up to 22 vessels stacked during the quarter.

Due to the nature of the shallow water market being generally comprised of low per-barrel production cost projects, this market has demonstrated good resilience. It was impacted by reduced activity in exploration and maintenance projects that was first visible in Q2 2015 continued in Q3 and mostly affected markets in Asia, MMI and West Africa.

Marine Services: Crew boat vessels



Quarter 9 months
Q3 2015 Q3 2014
(restated)
Var 2015/
2014
Q2 2015 2015 2014
(restated)
Var 2015/
2014
Adjusted Revenues (in € millions) 69.9 70.6 -1.0% 74.2 219.0 213.5 +2.6%
Number of vessels (end of period) 264 271 -7 vessels 263 264 271 -7 vessels
Average utilization rate 71.5% 74.0% -2.5 pts 75.0% 73.6% 75.0% -1.4 pts
Average daily rate (in US$/day) 4,632 5,113 -9.4% 4,732 4,771 5,161 -7.6%

Adjusted revenues for the first 9 months of 2015 were supported by the positive foreign exchange impacts while there were fewer vessels in the fleet and both average daily rates and average utilization rates declined. Similar to what was seen in prior quarters, the reduction in demand for the FSIVs had the greatest impact on the segment while the smaller crew boats continued to show greater resilience in utilization as a cost effective means of transportation during a difficult market.

Subsea Services

Quarter 9 months
Q3 2015 Q3 2014
(restated)
Var 2015/
2014
Q2 2015 2015 2014
(restated)
Var 2015/
2014
Adjusted Revenues (in € millions) 61.0 65.7 -7.2% 70.9 199.0 176.6 +12.7%
Number of vessels (end of period)* 22 19 +3 vessels 22 22 19 +3 vessels
Average utilization rate 64.3% 81.1% -16.8 pts 70.2% 70.1% 86.0% -15.9 pts
Average daily rate (in US$/day) 47,657 50,992 -6.5% 48,847 48,679 48,057 +1.3%

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

Three new vessels were added to the fleet compared with last year and the mix effect of the new, larger vessels resulted in a higher average daily rate for the 9 months period compared with a prior year. In combination with the favorable exchange rates, this lead to an increase in revenues of almost 13% for the period. Utilization rates declined as level of activity reduced in this segment and a few contracts were not being extended as clients were looking to reduce their own operating costs. This resulted in much of the
Subsea fleet working in the spot market.

Other

Quarter 9 months
Q3 2015 Q3 2014
(restated)
Var 2015/
2014
Q2 2015 2015 2014
(restated)
Var 2015/
2014
Adjusted Revenues (in € millions) 4.1 6.1 -32.8% 4.5 12.9 14.4 -10.2%

Activities included are those that do not properly fit into either Marine Services or Subsea Services. Making up the majority of the total are earnings from such items as miscellaneous ship management activities, logistics as well as from the cement carrier Endeavor.

OUTLOOK

The market environment in the oil services industry continues to be impacted by the effects of the oil price drop and the resulting reduction in capital investments by BOURBON's clients. Previously, capital spending plans had been reported to decrease 15% for the majors and up to 30% for the independents. Several large oil companies have recently announced even further cuts to come for 2016 as they indicate that they are planning for a prolonged period of relatively low oil prices.

BOURBON will continue to adapt to conditions and maintain its focus on cost control. Among the measures taken, BOURBON will continue to temporarily stack certain vessels which have no anticipated activity for 3 months. BOURBON is choosing to stack vessels to minimize costs and to preserve the utilization rates on the vessels that remain in operation. Today, 31 supply vessels are stacked.

It is in this context that BOURBON's strategy to operate a modern, standardized fleet, combined with its strong worldwide client network and local partnerships, contributes to its resiliency as its advantages become an even greater differentiator during difficult market conditions.

ADDITIONAL INFORMATION

  • BOURBON's results will continue to be influenced by the €/US$ exchange rate

FINANCIAL CALENDAR

4th Quarter 2015 & full year 2015 financial information press release February 3, 2016

2015 Annual Results press release and presentation March 10, 2016

APPENDIX

Quarterly adjusted revenue breakdown

In millions of euros 2015 2014 (restated)
Q3 Q2 Q1 Q4 Q3 Q2 Q1
Marine Services 279.0 299.8 312.2 314.3 289.8 277.5 274.3
Deepwater offshore vessels 101.9 109.6 113.8 111.4 106.3 98.9 95.1
Shallow water offshore vessels 107.2 116.1 123.5 127.8 112.9 108.3 106.6
Crew boats 69.9 74.2 74.9 75.0 70.6 70.3 72.6
Subsea Services 61.0 70.9 67.1 67.6 65.7 56.2 54.6
Other 4.1 4.5 4.3 6.6 6.1 4.2 4.1
Total adjusted revenues 344.1 375.2 383.6 388.5 361.7 337.9 333.0
Adjustments* (23.8) (30.1) (27.4) (25.5) (20.8) (15.3) (13.0)
TOTAL CONSOLIDATED** 320.2 345.1 356.3 363.0 340.8 322.6 320.0

* Effect of consolidation of joint ventures using the equity method.
**Consolidated 2013 figures have been restated according to the implementation of the new accounting standards.

Quarterly average utilization rates for the BOURBON offshore fleet

In % 2015 2014
Q3 Q2 Q1 Q4 Q3 Q2 Q1
Marine Services 74.1 77.4 79.2 81.7 79.4 80.0 82.4
Deepwater offshore vessels 79.8 84.0 86.0 85.8 85.7 87.2 88.6
Shallow water offshore vessels 75.5 78.3 84.5 89.1 86.6 87.8 91.2
Crew boats 71.5 75.0 74.4 76.7 74.0 74.3 76.6
Subsea Services 64.3 70.2 75.9 82.8 81.1 83.9 94.4
"Total fleet excluding Crew boats" 76.0 79.5 84.3 87.5 85.8 87.3 90.6
"Total fleet" average utilization rate 73.7 77.1 79.1 81.7 79.4 80.2 82.8

Quarterly average daily rates for the BOURBON offshore fleet

In US$/day 2015 2014
Q3 Q2 Q1 Q4 Q3 Q2 Q1
Deepwater offshore vessels 19,518 20,286 21,942 23,093 23,887 23,219 22,839
Shallow water offshore vessels 12,880 13,507 13,882 14,452 14,152 14,006 14,199
Crew boats 4,632 4,732 4,934 5,067 5,113 5,197 5,323
Subsea Services 47,657 48,847 50,118 48,063 50,992 46,868 45,407
"Total fleet excluding Crew boats" average daily
rate
17,858 18,640 19,301 19,871 20,247 19,588 19,497

Quarterly number of vessels (end of period)

In number of vessels* 2015 2014
Q3 Q2 Q1 Q4 Q3 Q2 Q1
Marine Services 484 483 479 483 481 481 479
Deepwater offshore vessels 86 82 79 79 75 74 73
Shallow water offshore vessels 134 138 138 139 135 133 130
Crew boats 264 263 262 265 271 274 276
Subsea Services 22 22 21 21 19 19 18
FLEET TOTAL 506 505 500 504 500 500 497

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

Quarterly deliveries of vessels

In number of vessels 2015 2014
Q3 Q2 Q1 Q4 Q3 Q2 Q1
Marine Services 6 4 0 10 5 8 12
Deepwater offshore vessels 4 3 0 5 1 1 2
Shallow water offshore vessels 0 0 0 4 2 3 6
Crew boats 2 1 0 1 2 4 4
Subsea Services 0 1 0 2 0 1 2
FLEET TOTAL 6 5 0 12 5 9 14

Nine months adjusted revenue breakdown

In millions of euros 9 months
2015 2014
(restated)
Marine Services 891.0 841.6
Deepwater offshore vessels 325.3 300.3
Shallow water offshore vessels 346.7 327.8
Crew boats 219.0 213.5
Subsea Services 199.0 176.6
Other 12.9 14.4
Total adjusted revenues 1,102.9 1,032.6
Adjustments* (81.4) (49.2)
TOTAL CONSOLIDATED** 1,021.6 983.4

* Effect of consolidation of joint ventures using the equity method.
** Consolidated 2013 figures have been restated according to the implementation of the new accounting standards.

Nine month average utilization rates for the BOURBON offshore fleet

In % 9 months
2015 2014
Marine Services 76.9 80.6
Deepwater offshore vessels 83.1 87.1
Shallow water offshore vessels 79.4 88.5
Crew boats 73.6 75.0
Subsea Services 70.1 86.0
"Total fleet excluding Crew boats" 79.8 87.8
"Total fleet" average utilization rate 76.6 80.8

Nine month average daily rates for the BOURBON offshore fleet

In US$/day 9 months
2015 2014
Deepwater offshore vessels 20,543 23,189
Shallow water offshore vessels 13,457 14,065
Crew boats 4,771 5,161
Subsea Services 48,679 48,057
"Total fleet excluding Crew boats" average daily rate 18,599 19,728

Nine month deliveries of vessels

In number of vessels 9 months
2015 2014
Marine Services 10 25
Deepwater Offshore vessels 7 4
Shallow water Offshore 0 11
Crew boats 3 10
Subsea Services 1 3
FLEET TOTAL 11 28

Breakdown of BOURBON adjusted revenues by geographical region

In millions of euros Third quarter 9 months
Q3 2015 Q3 2014
(restated)
Change 2015 2014
(restated)
Change
Africa 188.7 205.3 -8.1% 621.0 590.4 +5.2%
Europe & Mediterranean/Middle East 53.2 60.6 -12.2% 169.5 170.6 -0.7%
Americas 68.1 49.1 +38.7% 201.2 139.7 +44.0%
Asia 34.1 46.8 -27.0% 111.2 131.8 -15.6%

Other key indicators

Quarterly breakdown

2015 2014
Q3 Q2 Q1 Q4 Q3 Q2 Q1
Average €/US$ exchange rate for the quarter
(in €)
1.11 1.11 1.13 1.25 1.33 1.37 1.37
€/US$ exchange rate at closing
(in €)
1.12 1.12 1.08 1.21 1.26 1.37 1.38
Average price of Brent for the quarter
(in US$/bbl)
50 62 54 76 102 110 108

Nine month breakdown

9 months
2015 2014
Average nine month €/US$ exchange rate (in €) 1.11 1.35
€/US$ exchange rate at closing (in €) 1.12 1.26
Average nine month price of Brent (in US$/bbl) 55 106

About BOURBON

Among the market leaders in marine services for offshore oil & gas, BOURBON offers the most demanding oil & gas companies a wide range of marine services, both surface and sub-surface, for offshore oil & gas fields and wind farms. These extensive services rely on a broad range of the latest-generation vessels and the expertise of almost 12,000 skilled employees. Through its 29 operating subsidiaries the group provides local services as close as possible to customers and their operations throughout the world, of the highest standards of service and safety.

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

In 2014, BOURBON'S revenue came to €1,346.4 million and the company operated a fleet of 507 vessels as of September 30, 2015.

Placed by ICB (Industry Classification Benchmark) in the "Oil Services" sector, BOURBON is listed on the Euronext Paris, Compartment A.

Contacts

BOURBON

Investor Relations, analysts, shareholders
James Fraser, CFA
+33 491 133 545
james.fraser@bourbon-online.com

Corporate Communications
Christelle Loisel
+33 491 136 732
christelle.loisel@bourbon-online.com

Media relations agency
Publicis Consultants

Véronique Duhoux
+33 144 824 633
veronique.duhoux@consultants.publicis.fr

Vilizara Lazarova
+33 144 824 634
vilizara.lazarova@consultants.publicis.fr

PDF version http://hugin.info/159569/R/1963818/716657.pdf

HUG#1963818

Source: BOURBON