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BOURBON : 1st Quarter 2016 financial information

PARIS, May 4, 2016 (GLOBE NEWSWIRE) -- In the 1st quarter 2016, BOURBON adjusted revenues reached €314.5 million (-5.9% compared with 4th quarter 2015), illustrating the strong resilience in a market that is still declining

  • Good resistance for the revenues of BOURBON in a market still with significant decline in activity, but with an oil price that is recovering

2014 2015 2016
Q3 Q4 Q1 Q2 Q3 Q4 Q1
Adjusted revenues a (in € millions) 361.7 388.5 383.6 375.2 344.1 334.2 314.5
Sequential change - 7.4% -1.3% -2.2% -8.3% -2.9% -5.9%
Year on year change - 17.2% 15.2% 11.0% -4.9% -14.0% -18.0%
Average utilization rate (%) 79.4% 81.7% 79.1% 77.1% 73.7% 72.1% 69.5%
Average daily rate (in US$/d) 12,604 12,429 12,169 11,558 11,167 10,781 10,324
Average exchange rate €/US$ (in €) 1.33 1.25 1.13 1.11 1.11 1.10 1.10
(a) See page 2

  • BOURBON is the company within the offshore oil services industry that is best resisting the drop in the market
  • BOURBON's good resilience originates from the clients' preferences, which is reflected in the average utilization rate of the fleet

Source: BOURBON, Sec filings, published accounts Source: BOURBON, IHS Petrodata

"In a market where prices are imposed upon everyone, BOURBON is focusing on what it can control: safety, fleet availability, cost control and cash preservation by a proactive policy to stack vessels if necessary" says Christian Lefèvre, Chief Executive Officer of BOURBON. "The group is impacted by the market decline with less intensity and time lag. BOURBON is putting everything in place to be the first one ready for the resumption of activity when it will happen, reducing costs and anticipating the evolution of the clients' needs vis-à-vis vessels with, as a new paradigm, the digital revolution."

The impact of further spending reductions by oil & gas companies is being felt globally, with the most significant effects being felt in Asia and the Europe/Mediterranean/Middle East regions.

Market impacts on BOURBON performance are reflected in lower adjusted revenues when compared to Q4 2015 at current rates (-5.9%), resulting mainly from:

  • Average utilization rate excluding Crew boats declining by 5.0 points to 71.7%, mainly due to increased stacking of vessels
  • Average daily rate excluding Crew boats declining 3.0%

There were 47 supply vessels stacked as of March 31, 2016.

Crew Boats segment remained resilient with stable results for revenues as well as for average utilization and daily rates.

In € millions, except as noted Quarter
Q1 2016 Q1 2015 Variation
2016/2015
Q4 2015
Operational indicators
Number of vessels (FTE)* 511.4 500.0 +2.3% 508.0
Number of vessels (end of period)** 515 501 +14 vessels 511
(*) FTE: Full Time Equivalent
(**) Vessels operated by BOURBON (including vessels owned or on bareboat charter)

Adjusted Revenuesa
Marine Services 259.5 312.2 -16.9% 275.7
Deepwater offshore vessels 98.6 113.8 -13.4% 106.1
Shallow water offshore vessels 94.6 123.5 -23.4% 103.0
Crew boats 66.3 74.9 -11.5% 66.6
Subsea Services 50.0 67.1 -25.5% 53.3
Other 5.0 4.3 +15.9% 5.2
Total adjusted revenues
(change at constant rate)
314.5 383.6 -18.0%
-18.6%
334.2
-7.5%
IFRS 11 impact*** (22.5) (27.4) (26.1)
Group TOTAL 292.0 356.3 -18.0% 308.1
(***) Effect of consolidation of jointly controlled companies using the equity method

Average utilization rate (excl. Crew boats) 71.7% 84.3% -12.6 pts 76.7%
Average daily rate (excl. Crew boats) 16,299 19,301 -15.6% 16,809

(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
Q1 2016 Q1 2015 Variation
2016/2015
Q4 2015
Adjusted Revenues (in € millions) 259.5 312.2 -16.9% 275.7
Number of vessels (end of period)* 492 479 +13 vessels 488
Average utilization rate 70.3% 79.2% -8.9 pts 73.0%

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

Adjusted revenues declined in all segments of Marine Services during the 1st quarter. West Africa, Asia and the Europe/Mediterranean/Middle East regions felt the greatest impact of declines in average utilization rates and average daily rates in the quarter. Overall, adjusted revenues in the Americas region increased slightly. Brazil showed an improvement in average utilization rates during the quarter, while the average daily rates were negatively impacted by the weakening of the Brazilian real.

Marine Services: Deepwater offshore vessels

Quarter
Q1 2016 Q1 2015 Variation
2016/2015
Q4 2015
Adjusted Revenues (in € millions) 98.6 113.8 -13.4% 106.1
Number of vessels (end of period)* 89 79 +10 vessels 88
Average utilization rate 77.2% 86.0% -8.8 pts 82.6%
Average daily rate (US$/day) 17,630 21,942 -19.7% 18,360

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

The 1st quarter of 2016 was highlighted by the delivery and first operation in the North Sea of the Bourbon Arctic, a brand new AHTS vessel with more than 300 tons of bollard pull capability. The increase in the number of vessels in the fleet versus a year ago was offset by the proactive measures to reduce costs, notably by the stacking of up to 13 vessels in the 1st quarter 2016, contributing to a decline in adjusted revenues of 13.4%. The impact of the increase in the number of stacked vessels is seen in the average utilization rate for the quarter having declined both year on year and sequentially. Average daily rates versus a year ago declined almost 20% as a result of the market conditions in the global OSV sector.

Marine Services: Shallow water offshore vessels

Quarter
Q1 2016 Q1 2015 Variation
2016/2015
Q4 2015
Adjusted Revenues (in € millions) 94.6 123.5 -23.4% 103.0
Number of vessels (end of period)* 133 138 -5 vessels 133
Average utilization rate 71.3% 84.5% -13.2 pts 76.5%
Average daily rate (in US$/day) 11,967 13,882 -13.8% 12,205

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

Adjusted revenues in the current quarter declined compared with the year ago period due to the combined effect of vessel sales and market conditions. During the quarter, there were up to 28 vessels stacked, thus significantly impacting the utilization rate, which declined over 13 points. The average daily rate was mostly impacted by declines in West Africa, Asia and Europe/Mediterranean/Middle East regions.

Marine Services: Crew boat vessels



Quarter
Q1 2016 Q1 2015 Variation
2016/2015
Q4 2015
Adjusted Revenues (in € millions) 66.3 74.9 -11.5% 66.6
Number of vessels (end of period) 270 262 +8 vessels 267
Average utilization rate 67.5% 74.4% -6.9 pts 68.0%
Average daily rate (in US$/day) 4,538 4,934 -8.0% 4,530

The Crew Boats segment continues to show its resilience as a preferred solution by clients in order to minimize their costs versus the use of helicopters. The impact of fewer projects is seen with the reduction in activity versus a year ago. However, sequentially, performance was stable with flat adjusted revenues benefiting from stable average utilization rates and average daily rates.

Subsea Services

Quarter
Q1 2016 Q1 2015 Variation
2016/2015
Q4 2015
Adjusted Revenues (in € millions) 50.0 67.1 -25.5% 53.3
Number of vessels (end of period)* 22 21 +1 vessel 22
Average utilization rate 52.3% 75.9% -23.6 pts 54.0%
Average daily rate (in US$/day) 44,119 50,118 -12.0% 47,232

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

Adjusted revenues declined 6.2% versus the 4th quarter 2015, reflecting the continued difficult market conditions. The effect of the proactive measures to stack up to 11 vessels during the 1st quarter 2016 is seen in the utilization rates, reaching 52% for the period, which was relatively stable versus the 4th quarter 2015.

Other

Quarter
Q1 2016 Q1 2015 Variation
2016/2015
Q4 2015
Adjusted Revenues (in € millions) 5.0 4.3 +15.9% 5.2

Activities included are those that do not 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

Oil prices have recently increased from their lows and expectations are that the current imbalance between oil supply and demand should become more balance later in the year or next year. While the demand for offshore supply vessels remains very difficult, 2016 will likely see a low point in the cycle with probably a slight rebound in the second half of the year. This improvement will be mainly in the areas of maintaining production of existing oil fields and maintenance of production units.

BOURBON will focus on excellence in service execution and will strive to maintain a high utilization rate of the fleet in operation (excluding stacked vessels) utilizing its international network, mainly with local partnerships.

The group will continue to stack vessels in its supply fleet if there are no commercial opportunities in the medium term in order to reduce operational costs.

As the industry remains in this prolonged downturn, BOURBON remains focused on what it can control: safety, fleet availability, cost control initiatives and cash preservation.

ADDITIONAL INFORMATION

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

FINANCIAL CALENDAR

Annual Shareholder's Meeting May 26, 2016
2016 1st Half Financial Information press release August 3, 2016
2016 1st Half Results press release and presentation September 8, 2016
2016 3rd Quarter Financial Information press release November 3, 2016

APPENDIX

Quarterly adjusted revenue breakdown

In € millions 2016 2015
Q1 Q4 Q3 Q2 Q1
Marine Services 259.5 275.7 279.0 299.8 312.2
Deepwater offshore vessels 98.6 106.1 101.9 109.6 113.8
Shallow water offshore vessels 94.6 103.0 107.2 116.1 123.5
Crew boats 66.3 66.6 69.9 74.2 74.9
Subsea Services 50.0 53.3 61.0 70.9 67.1
Other 5.0 5.2 4.1 4.5 4.3
Total adjusted revenues 314.5 334.2 344.1 375.2 383.6
IFRS 11 impact* (22.5) (26.1) (23.8) (30.1) (27.4)
TOTAL CONSOLIDATED** 292.0 308.1 320.2 345.1 356.3

* Effect of consolidation of joint ventures using the equity method.

Quarterly average utilization rates for the BOURBON offshore fleet

In % 2016 2015
Q1 Q4 Q3 Q2 Q1
Marine Services 70.3 73.0 74.1 77.4 79.2
Deepwater offshore vessels 77.2 82.6 79.8 84.0 86.0
Shallow water offshore vessels 71.3 76.5 75.5 78.3 84.5
Crew boats 67.5 68.0 71.5 75.0 74.4
Subsea Services 52.3 54.0 64.3 70.2 75.9
"Total fleet excluding Crew boats" 71.7 76.7 76.0 79.5 84.3
"Total fleet" average utilization rate 69.5 72.1 73.7 77.1 79.1

Quarterly average daily rates for the BOURBON offshore fleet

In US$/day 2016 2015
Q1 Q4 Q3 Q2 Q1
Deepwater offshore vessels 17,630 18,360 19,518 20,286 21,942
Shallow water offshore vessels 11,967 12,205 12,880 13,507 13,882
Crew boats 4,538 4,530 4,632 4,732 4,934
Subsea Services 44,119 47,232 47,657 48,847 50,118
"Total fleet excluding Crew boats' average daily
rate
16,299 16,809 17,858 18,640 19,301

Quarterly number of vessels (end of period)

In number of vessels* 2016 2015
Q1 Q4 Q3 Q2 Q1
Marine Services 492 488 484 483 479
Deepwater offshore vessels 89 88 86 82 79
Shallow water offshore vessels 133 133 134 138 138
Crew boats 270 267 264 263 262
Subsea Services 22 22 22 22 21
FLEET TOTAL 514 510 506 505 500

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

Quarterly deliveries of vessels

In number of vessels 2016 2015
Q1 Q4 Q3 Q2 Q1
Marine Services 4 5 6 4 0
Deepwater offshore vessels 1 2 4 3 0
Shallow water offshore vessels 0 0 0 0 0
Crew boats 3 3 2 1 0
Subsea Services 0 0 0 1 0
FLEET TOTAL 4 5 6 5 0

Breakdown of BOURBON adjusted revenues by geographical region

In € millions 2016 2015
Q1 Q4 Q3 Q2 Q1
Africa 186.5 193.3 188.7 212.5 219.8
Europe & Mediterranean/Middle East 33.7 45.5 53.2 57.2 59.1
Americas 66.4 62.6 68.1 68.9 64.2
Asia 27.8 32.9 34.1 36.6 40.5

Other key indicators

Quarterly breakdown

2016 2015
Q1 Q4 Q3 Q2 Q1
Average €/US$ exchange rate for the quarter (in €) 1.10 1.10 1.11 1.11 1.13
€/US$ exchange rate at closing (in €) 1.14 1.09 1.12 1.12 1.08
Average price of Brent for the quarter (in US$/bbl) 34 44 50 62 54

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 more than 11,000 skilled employees. Through its 34 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 2015, BOURBON'S revenue came to €1,329.6 million and as of March 31, 2016, the company operated a fleet of 515 vessels.

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

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

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



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Source: BOURBON