BOURBON: 2017 Annual Results

Paris, March 15, 2018

BOURBON 2017 Annual Results

Results that reflect a third year of cyclical downturn
and a sharp increase in free cash flow
· Free cash flow rose to €127.8 million, up from €64.7 million in 2016
· Net income, group share stood at -€576.3 million, including €277 million in provisions for asset impairment and non-recurring expenses, €167.2 million of which for the non-smart fleet

334 vessels in operation (full-time equivalent) with a utilization rate of 82.4%, stable compared to 83.1% in 2016 A fall in average daily rates of around $1,000/day An increase of 52 units in the number of stacked vessels (full-time equivalent) Growing potential for positive free cash flow generation due in particular to a sharp reduction in capital expenditure Recognition of impairment losses on the "non-smart" fleet and provisions for doubtful receivables The group has decided to close its financial statements with regards to the going concern in light of the trust it has in the outcome of the reopened discussions with financial partners.


2017 2016 Change
2017/2016
Change
%
Operational indicators
Number of vessels (FTE)* 511.9 512.3 -0.4 -0.1%
Total fleet in operation (FTE) 333.7 386.4 -52.7 -13.6%
Number of stacked vessels (FTE) 178.2 125.9 +52.3 +41.5%
Utilization rate of the fleet in operation 82.4% 83.1% -0.7 pt
Average utilization rate 53.7% 62.7% -9.0 pts
Average daily rate $/d 8,725 9,586 -861 -9.0%
* FTE : Full Time Equivalent
In € millions, unless otherwise noted 2017 2016 Change
in €M
Change
In %
Financial performance
Adjusteda revenues 860.6 1,102.6 -242.0 -21.9%
(change at constant rate) -21.3%
Operational and general costs (608.3) (719.6) +111.3 +15.5%
Adjusteda EBITDAR (ex. cap. gain) 252.4 383.0 -130.6 -34.1%
EBITDAR / Revenues 29.3% 34.7% -5,4pts
Bareboat charters (164.4) (188.7) +24.3 -12.9%
Adjusteda EBITDA 87.8 193.3 -105.5 Ns
Impairment (196.8) (36.0) -160.8 Ns
Adjusteda EBIT (403.9) (165.1) -238.8 Ns
EBIT (406.6) (175.3) -231.3 Ns
Net income (group share) (576.3) (279.6) -296.7 -106,1%


"BOURBON's teams carried off a solid operating performance in 2017 thanks to their focus on security, cost control initiatives and the fleet's technical reliability. Performance in terms of free cash flow generation is equally sound in the crisis environment that has faced all oil & gas industry players for the past three years," said Gaël Bodénès, Chief Executive Officer of BOURBON Corporation. "On the basis of our experience as a leader, we aspire to change our business model for more integrated services, to capitalize on the digital revolution to connect our fleet and to make our new organization less centralized and more agile. Positioning our company to take advantage of the recovery under optimum competitive conditions following the cyclical downturn: this is the essence of our #BOURBONINMOTION strategic plan, presented last month and currently being implemented."

(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). 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. Furthermore, internal reporting (and again the adjusted financial information) does not take into account IAS 29 (Financial Reporting in Hyperinflationary Economies), applicable for the first time in 2017 (retroactively from January,1) to an operational joint venture in Angola.
The reconciliation between the adjusted data and the consolidated data can be found in Appendix I on page 12

2017 Financial Results

  • Income statement


The continued downswing in activity in 2017 led to the working fleet being reduced to 334 vessels and the number of stacked vessels being increased by an extra 52 units. Adjusted revenue amounted to €860.6 million, down 21.9% on the previous year. This was due to a working fleet utilization rate that was stable at 82.4%, and a fall in the average daily rate of around $1,000/day to $8725.

Adjusted EBITDAR stood at €252.4 million, down 34.1% from 2016. The decrease in operating costs, net of additional charges for stacked vessels, and the reduction in general costs was 15.5% year-on-year. As a result, adjusted EBITDAR margin fell to 29.3%, from 34.7% the previous year.

The sharp decline in adjusted EBIT of -€403.9 million, compared with -€165.1 million in 2016, was mainly due to a vessel impairment loss of €196.8 million, €167.2 million of which was for the non-smart fleet and provisions of €30 million, including €24.5 million for customer receivables.

In terms of financial income & expenses, the cost of net debt amounted to €54.6 million, versus €43 million the previous year. This item also includes foreign exchange losses of €83 million (including €73 million in unrealized losses), impairment losses on financial receivables of €28 million, and other non-recurring financial expenses of €22 million, linked to the accounting treatment of the group debt at December 31, 2017, and the uncertainty of the related future cash flows.

Net income, group share of -€576.3 million reflects the crisis in the sector, its impact on asset values and the risk of non-recovery of certain receivables.

  • Balance Sheet Statement

Consolidated Capital Employed 12/31/2017 12/31/2016
In millions of euros
Net non-current Assets 2,028.3 2,654.5
Working Capital 102.0 198.0
Total Capital Employed 2,130.3 2,852.5
Shareholders' equity 643.6 1,255.5
Non-current liabilities (provisions and deferred taxes) 121.5 128.7
Net debt 1,365.2 1,468.2
Total Capital Employed 2,130.3 2,852.5

The €722.2 million reduction in capital employed in 2017 is due to:

  • a €626.1 million decrease in the value of fixed assets following the recognition of non-recurring impairment losses, asset disposals and normal depreciation and amortization;
  • a €96.1 million decrease in working capital due to lower revenue and a reduction in customer payment delays.


As a result, shareholders' equity now stands at €643.6 million, versus 1,255.5 million at the end of 2016. There was also a slight reduction in net debt of €103.1 million year-on-year.

Furthermore, the group was unable to comply with various covenants defined in its loan documentation as of December 31, 2017.

Under IFRS, this breach of covenants at year-end requires the company to reflect the payability of its debt by reclassifying it as a current liability, even though its lenders have not requested repayment. The amount thus reclassified totaled €1,121 million at December 31, 2017.

While discussions are ongoing, BOURBON has asked its lenders to postpone exercising their rights under the loan agreements, particularly the right to repayment. To date, the group is still waiting for several replies, but is confident that it will obtain these agreements for postponement.

The group has therefore decided to enter into further discussions with its lenders, both in France and abroad, to balance the servicing of its debt with the expected gradual market recovery and the corresponding upturn in the group's performance.

This situation raises a material uncertainty with regards to the going concern, the company is however confident in its ability to find a balanced solution with its lenders - often long-standing partners - that suits all parties and allows the company to adapt its financing to its future development.

The cash flow generated by the business will enable the group to meet its current operating needs. Accordingly, it has prepared its consolidated financial statements at December 31, 2017 on a going concern basis.

  • Cash flow (see appendix IV: Simplified Consolidated Cash Flow Statement)


The 2017 cash flow analysis highlights the following key points:

  • positive cash flow from operating activities of €150.7 million. Lease payments amounted to €71.9 million, compared to €164.4 million expenses recognized under IFRS;
  • cash flow from investment activities was negative by only €2.3 million, the much lower periodic maintenance expenses being offset by the sale of Endeavor, a cement carrier that had remained in the fleet after the sale of other bulk carriers in 2010, and the repayment of loans and advances granted;
  • cash flow from financing activities was positive at €21.6 million. Repayments of borrowings and the cost of net debt were offset by the issuance of new debt totaling €73.2 million and refinancing of cash facilities for a net amount of €196.0 million.

Overall, the company's cash position improved by €179.0 million, given the refinancing of cash facilities. Excluding this refinancing, the group's cash position deteriorated by €17.8 million.

In 2018, BOURBON will maintain a cautious approach aimed at:
- disposing of the non-smart fleet, no longer considered strategic;
- prioritizing investment in the recommissioning of vessels required for new contracts and for its #BOURBONINMOTION action plan;
- making spending on leased vessels and financial debt proportional to available cash.


Outlook

With the oil price climbing by more than 25% over the last three quarters, stabilizing at around $60-65/barrel, the growth in cash generated by the oil companies points to a gradual resumption of investments. While investments in company acquisitions, shale oil, onshore projects and renewable energy clearly seem to have resumed, investment growth in the offshore sector is expected to be gradual in 2019. Prices will be held down by vessel overcapacity in the PSV and AHTS segments. Performance for 2018 is therefore expected to be similar to 2017 in terms of activity.

Convinced that the industry's future will be based on models different from those of the past, BOURBON has decided to implement an action plan, #BOURBONINMOTION, built around three key objectives:

  • to better serve its clients by steering its business model towards more integrated services and restructuring the group around three stand-alone companies: Bourbon Marine and Logistics, Bourbon Subsea Services, and Bourbon Mobility;
  • to deliver operational excellence at optimum cost by deploying the Smart shipping program, connecting the fleet of 132 modern Supply vessels (the "smart fleet") and disposing of the fleet that can no longer be operated to BOURBON's new standards (the "non-smart fleet");
  • to rise to the human challenge through effective change management.

Our clients are leading the way in connecting their Offshore facilities and are requesting business model evolution towards responsibility sharing. That's why we need to prepare to these changes, which will accompany the market's gradual upturn in the years to come.


MARINE SERVICES


2017 2016 Change
2017/2016
Change
in %
Operational indicators
Number of vessels (FTE)* 489.5 489.3 +0.2 +0.0%
Fleet in operation (FTE) 317.5 370.5 -53.0 -14.3%
Number of stacked vessels (FTE) 172.0 118.9 +53.1 +44.6%
Utilization rate of the fleet in operation 82.3% 83.1% -0.8 pt
Average utilization rate 53.4% 62.9% -9.5 pts
Average daily rate $/d 7,365 8,400 - 1,035 -12.3%
* FTE : Full Time Equivalent

In €M, unless otherwise noted 2017 2016 Change
in €M
Change
in %
Financial performance
Adjusted Revenues 627.4 864.1 -236.6 -27.4%
Operational & General Costs (465.8) (585.9) +120.1 +20.5%
Adjusted EBITDAR (ex. capital gains) 161.7 278.2 -116.5 -41.9%
EBITDAR / Revenues 25.8% 32.2% -6.4 pts
Bareboat Charters (119.0) (134.4) +15.4 -11.5%
Adjusted EBITDA 42.4 144.2 -101.8 -70.6%
Impairment (177.1) (36.0) -141.1 ns
Adjusted EBIT (374.5) (155.7) -218.8 ns

Impairment losses of €177.1 million account for most of the change in 2017 adjusted EBIT relative to the previous year.


Marine Services : Deepwater offshore vessels

2017 2016 Change
2017/2016
Change
in %
Operational indicators
Number of vessels (FTE)* 88.7 88.8 -0.1 -0.1%
Fleet in operation (FTE) 63.3 70.9 -7.6 -10.7%
Number of stacked vessels (FTE) 25.4 17.9 +7.5 +41.9%
Utilization rate of the fleet in operation 85.7% 85.6% +0.1pt
Average utilization rate 61.2% 68.4% -7.2 pts
Average daily rate $/d 14,389 16,524 -2,135 -12.9%
* FTE : Full Time Equivalent


In €M, unless otherwise noted
2017 2016 Change
in €M
Change
in %
Financial performance
Adjusted Revenues 259.9 337.0 -80.1 -23.8%
Operational & General Costs (183.9) (221.7) +37.8 +17.1%
Adjusted EBITDAR (ex. capital gains) 73.1 115.3 -42.2 -36.6%
EBITDAR / Revenues 28.4% 34,2% -5.8 pts
Adjusted EBITDA 11.3 47.4 -36.1 -76.1%

The utilization rate of the fleet in operation remained satisfactory at 85.7%, the same as in 2016.

Weak demand increased the number of stacked vessels by 7.5 units (full-time equivalent), while the large number of vessels available has inevitably pushed the average daily rate down, by around $2,000 per vessel, or -12.9%.

As a result, revenue fell by 23.8% and despite a sharp reduction in costs, EBITDAR was down 36.6% to €73.1 million year-on-year.

The outlook remains challenging in all regions where we operate. However, following an increase in demand in the last quarter of 2017, we have begun recommissioning vessels to meet the needs of our customers in West Africa and the Mediterranean.

Marine Services : Shallow water offshore vessels


2017 2016 Change
2017/2016
Change
in %
Operational indicators
Number of vessels (FTE)* 131.7 133.0 -1.3 -0.9%
Fleet in operation (FTE) 60.2 87.3 -27.1 -31.0%
Number of stacked vessels (FTE) 71.5 45.7 +25.8 +56.5%
Utilization rate of the fleet in operation 89.3% 88.1% +1.2pt
Average utilization rate 40.8% 57.9% -17.1 pts
Average daily rate $/d 8,669 10,848 -2,179 -20.1%
* FTE : Full Time Equivalent

In €M, unless otherwise noted 2017 2016 Change
in €M
Change
in %
Financial performance
Adjusted Revenues 154.2 279.2 -125.0 -44.8%
Operational & General Costs (121.1) (187.2) +66.1 +35.3%
Adjusted EBITDAR (ex. capital gains) 33.2 92.1 -58.9 -64.0%
EBITDAR / Revenues 21.5% 33.0% -11.5pts
Adjusted EBITDA (24.5) 25.6 -50.1 ns

BOURBON's shallow water offshore business is now the most affected in terms of the number of vessels in operation, after three years of a cyclical downturn. The number of stacked vessels has increased by 25.8 units (full-time equivalent), while oversupply has pushed the average daily rate down by 20%, or more than $2,000/day.

In this context, our proactive vessel-stacking policy has enabled us to maintain the utilization rate of vessels in operation at 89.3%, a slight increase year-on-year.

Despite this, revenue fell sharply by 44.8% to €154.2 million, or €125 million less than the previous year.

Sound management of operating costs and stacked vessel costs could only make up for half of this decrease, with EBITDAR 2017 down at €33.2 million, versus €92.1 million in 2016.

The pressure on daily rates is expected to continue during 2018 and probably into 2019. The boost to revenue will therefore come from higher vessel utilization.

We reacted positively to an increase in calls for tender in West Africa and the Middle East in late 2017 by bringing a number of vessels back into service for medium and long-term contracts.


Marine Services : Crew boat vessels

2017 2016 Change
2017/2016
Change
in %
Operational indicators
Number of vessels (FTE)* 269.0 267.5 +1.5 +0.6%
Fleet in operation (FTE) 193.9 212.2 -18.3 -8.6%
Number of stacked vessels (FTE) 75.1 55.3 +19.8 +35.8%
Utilization rate of the fleet in operation

79.0% 80.2% -1 ,2 pt
Average utilization rate 56.9% 63.6% -6.7 pts
Average daily rate $/d 4,418 4,394 +24.0 +0.5%
* FTE : Full Time Equivalent


In €M, unless otherwise noted
2017 2016 Change
in €M
Change
in %
Financial performance
Adjusted Revenues 216.3 247.8 -31.5 -12.7%
Operational & General Costs (160.8) (177.0) +16.2 +9.2%
Adjusted EBITDAR (ex. capital gains) 55.4 70.8 -15.3 -21.7%
EBITDAR / Revenues 25.6% 28.6% -2.9pts
Adjusted EBITDA (55.5) 71.2 -15.7 -22.0%

For Crew boats, the 12.7% drop in revenue to €216.3 million is mostly due to a fall in contractor demand. At the same time, three FSIVs in the Caribbean have been repositioned in West Africa.

Since the utilization rate of vessels in operation and the average daily rate have remained stable, the decline stems from the increase of 19.8 units (full-time equivalent) in stacked vessels. However, the transfer of passengers from helicopter to Crew boats is continuing to take place, with a +3.5% increase in the number of passengers transported between 2016 and 2017.

In this segment also, the €16.2 million reduction in costs only offset about 50% of the decline in revenue, mainly because of non-recurring maintenance costs on certain vessels, resulting in EBITDAR of €55.4 million.

SUBSEA SERVICES


2017 2016 Change
2017/2016
Change in %
Operational indicators
Number of vessels (FTE)* 22.0 22.0 - -
Fleet in operation (FTE) 15.8 14.9 +0.9 +6.0%
Number of stacked vessels (FTE) 6.2 7.1 -0.9 -12.7%
Utilization rate of the fleet in operation

84.4% 84.1% -0.3pt
Average utilization rate 60.7% 57.1% +3.6 pts
Average daily rate $/d 35,328 38,624 -3,296 -8.5%
* FTE : Full Time Equivalent

In €M, unless otherwise noted 2017 2016 Change in €M Change in %
Financial performance
Adjusted Revenues 220.1 217.2 +2.9 +1.3%
Operational & General Costs (134.1) (119.0) -15.1 -12.7%
Adjusted EBITDAR (ex. capital gains) 86.0 98.1 -12.2 -12.4%
EBITDAR / Revenues 39.1% 45.2% -6.1pts
Bareboat Charters (45.4) (53.2) +8.9 +16.4%
Adjusted EBITDA 40.6 42.4 -1.9 -4.4%
Impairment (19.8) - -19.8 ns
Adjusted EBIT (27.6) (6.6) -21.0 ns

Revenue remained stable between 2016 and 2017. However, the mix changed in 2017, with turnkey projects now representing 10% of revenue.

Costs rose by 12.7% due to turnkey projects, and in particular subcontracted activities, costs of equipment leasing and spare parts for ROVs.
The fall in EBITDAR reflects the 8.5% decrease in the average charter rate between 2016 and 2017.

Subsea activities for contractors remained steady in the first half of 2017 but declined in the second half of 2017. This "contractor" business will be scaled back in 2018.

The Bourbon Subsea Services fleet remains strategically positioned to respond to cycle differences between regions.


OTHER


In €M, unless otherwise noted
2017 2016 Change
in €M
Change
In %
Financial performance
Adjusted Revenues 13.1 21.3 -8.2 -38.6%
Operational & General Costs (8.3) (14.7) -6.4 -43.5%
Adjusted EBITDAR (ex. capital gains) 4.7 6.7 -2.0 -29.6%

EBITDAR / Revenues 36.1% 31.4% +4.6pts
Adjusted EBITDA 4.9 6.7 -1.9 -27.7%

Activities included are those that do not fit into either Marine Services or Subsea Services. The majority of the total represents earnings from such items as miscellaneous ship management activities, logistics as well as from the cement carrier Endeavor, which was sold in July 2017.


ADDITIONAL INFORMATION

  • BOURBON's results will continue to be affected by the €/US$ exchange rate.
  • The 2017 financial statements were approved by the Board of Directors on March 14, 2018, under the going concern accounting principle.
  • The consolidated financial statements have been audited. The statutory auditors' report will be issued after completion of the procedures required for the filing of the Registration Document. The material uncertainty under going concern will be covered in a specific part of this report.
  • The Board of Directors will not recommend any dividend for this year at the next Annual Shareholders' Meeting.
  • BOURBON Corporation's General Management will comment on the results during an audio webcast scheduled today at 9:00 am Paris local time. The presentation will be followed by a Q&A session. The replay of the audio webcast will be available during the day on our website: http://www.bourbonoffshore.com/en/bourbon-full-year-2017

FINANCIAL CALENDAR

2018 1st Quarter revenues press release May 3, 2018
Combined General Shareholders' Meeting May 30, 2018

APPENDIX I

Reconciliation of adjusted financial information with the consolidated financial statements

Adjustment items are related the consolidation of joint ventures according to the equity method as per IFRS 11. Adjusted data for 2017 does not take account of standard IAS 29 (Financial Reporting in Hyperinflationary Economies), applicable for the first time for an operational joint venture in Angola. At December 31, 2017 and for the comparative period presented, adjustment items are as follows:

In millions of euros 2017 Adjusted Restatements* 2017
Consolidated
Revenues 860.6 (67.0) 793.6
Direct Costs & General and Administrative costs (608.3) 54.7 (553.6)
EBITDAR (excluding capital gains) 252.4 (12.3) 240.0
Bareboat charter costs (164.4) - (164.4)
EBITDA (excluding capital gains) 88.0 (12.3) 75.7
Capital gain (0.2) - (0.2)
EBITDA 87.8 (12.3) 75.4
Depreciation, Amortization & Provisions (294.9) 5.9 (288.9)
Impairment (196.8) - (196.8)
Share of results from companies under the equity method** - 3.7 3.7
EBIT (403.9) (2.7) (406.6)
*Effect of consolidation of jointly controlled companies using the equity method (IFRS 11)
** Including the application of IAS 29
In millions of euros 2016 Adjusted Restatements* 2016
Consolidated
Revenues 1,102.6 (82) 1,020.6
Direct Costs & General and Administrative costs (719.6) 65.7 (653.8)
EBITDAR (excluding capital gains) 383.0 (16.2) 366.8
Bareboat charter costs (188.7) - (188.7)
EBITDA (excluding capital gains) 194.4 (16.2) 178.1
Capital gain (1.0) 1.4 0.4
EBITDA 193.3 (14.8) 178.5
Depreciation, Amortization & Provisions (322.5) 6.1 (316.4)
Impairment (36.0) - (36.0)
Share of results from companies under the equity method - (1.4) (1.4)
EBIT (165.1) (10.2) (175.3)
*Effect of consolidation of jointly controlled companies using the equity method (IFRS 11)

APPENDIX II

Simplified Consolidated Income Statement

In millions of euros (except per share data) 2017 2016 Change
2017/2016
Revenues 793.6 1,020.6 -22.2%
Direct costs (456.4) (538.8) -15.3%
General & Administrative costs (97.2) (115.0) -15.5%
EBITDAR excluding capital gains 240.0 366.8 -34.6%
Bareboat charter costs (164.4) (188.7) -12.9%
EBITDA excluding capital gains 75.7 178.1 -57.5%
Capital gain (0.2) 0.4 ns
Gross operating income EBITDA 75.4 178.5 -57.7%
Depreciation, Amortization & Provisions (288.9) (316.4) -8.7%
Impairment (196.8) (36.0) ns
Share of results from companies under the equity method 3.7 (1.4) ns
Operating income (EBIT) after share of results from companies under equity method (406.6) (175.3) ns
Financial profit/loss (189.5) (63.8) ns
Income tax (12.8) (23.9) -46.5%
Net Income (608.9) (263.0) ns
Minority interests 32.6 (16.6) ns
Net income (Group share) (576.3) (279.6) +106,1%
Earnings per share (7.47) (3.68)
Weighted average number of shares outstanding 77,098,675 77,063,279*

* this figure takes into account the 1,156,611 immediately vested shares issued on July 17, 2017 as payment of the 2016 dividend

APPENDIX III

Simplified Consolidated Balance Sheet

In millions of euros 12/31/2017 12/31/2016 12/31/2017 12/31/2016
Shareholders' equity 643.6 1,255.5
Net property, plant and equipment 1,923.2 2,437.6 Financial debt > 1 year 183.8 218.7
Other non-current assets 90.3 243.5 Other non-current liabilities 122.9 151.1
TOTAL NON-CURRENT ASSETS 2,013.5 2,681.0 TOTAL NON-CURRENT LIABILITIES 306.8 369.7
Cash on hand and in banks 243.6 281.5 Financial debt < 1 year 1,425.0 1,531.1
Other currents assets 485.2 597.3 Other current liabilities 367.0 403.5
TOTAL CURRENT ASSETS 728.9 878.8 TOTAL CURRENT LIABILITIES 1,792.0 1,934.5
Non-current assets held for sale - - Liabilities directly associated with non-current assets classified as held for sale - -
TOTAL LIABILITIES 2,098.8 2,304.3
TOTAL ASSETS 2,742.4 3,559.8 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 2,742.4 3,559.8


APPENDIX IV

Simplified Consolidated Cash Flow Statement

In millions of euros 2017 2016
Cash flow from operating activities
consolidated net income (loss) (608.9) (263.0)
cash flow from operating activities 759.6 476.8
Net cash flow from operating activities (A) 150.7 213.8
Cash flow from investing activities
acquisition of property, plant and equipment and intangible assets (47.1) (154.3)
sale of property, plant and equipment and intangible assets 24.2 5.2
other cash flow from investing activities 20.6 (28.9)
Net Cash flow from investing activities (B) (2.3) (178.0)
Cash flow from financing activities
net increase (decrease) in borrowings 94.1 (16.2)
Perpetual bond issue - -
dividends paid to shareholders of the group (8.5) (25.5)
Dividends paid to non-controlling interests (7.6) (18.5)
cost of net debt (56.2) (47.2)
other cash flow from financing activities (0.2) (4.4)
Net Cash flow used in financing activities (C) 21.6 (111.8)
Impact from the change in exchange rates (D) and other reclassifications 9.0 0.4
Change in net cash (A) + (B) + (C) + (D) 179.0 (75.6)
Net cash at beginning of period (11.8) 63.8
Change in net cash 179.0 (75.6)
Net cash at end of period 167.2 (11.8)

APPENDIX V

Consolidated Sources and uses of Cash

In millions of euros
2017 2016
Cash generated by operations 131.4 153.3
Vessels in service (A) 107.2 148.1
Vessels sale 24.2 5.2
Cash out for : (85.3) (117.1)
Interest (56.2) (47.2)
Taxes (B) (13.0) (25.9)
Dividends (16.1) (43.9)
Net Cash from activity 46.1 36.2
Net debt change (75.8) 59.7
Perpetual bond - -
Use of cash for 9.4 (62.7)
Investments (47.1) (154.3)
Working capital (C) 56.5 91.6
Other sources and uses of cash 20.3 33.3
Free cash flow 127.8 64.7
Net Cash flow from operating activities (A+B+C) 150.7 213.8
Acquisition of property, plant and equipment and intangible assets (47.1) (154.3)
Sale of property, plant and equipment and intangible assets 24.2 5.2


APPENDIX VI

Quarterly revenue breakdown

In millions of euros 2017 2016
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Marine Services 151.2 149.1 162.3 164.8 182.9 203.2 218.5 259.5
Deepwater offshore vessels 60.0 59.9 68.3 68.8 72.8 81.4 84.2 98.6
Shallow water offshore vessels 40.2 37.8 39.1 37.1 50.1 60.9 73.6 94.6
Crew boats 51.0 51.4 55.0 58.9 60.0 60.8 60.7 66.3
Subsea Services 43.6 52.1 67.8 56.6 56.4 50.0 60.9 50.0
Other 2.1 3.0 3.8 4.1 5.1 5.9 5.3 5.0
Total adjusted revenues 196.9 204.3 234.0 225.5 244.4 259.1 284.7 314.5
IFRS 11 impact* (15.3) (11.9) (19.2) (20.6) (20.0) (19.4) (20.1) (22.5)
TOTAL CONSOLIDATED 181.6 192.4 214.7 204.9 224.4 239.7 264.6 292.0

*Effect of consolidation of joint ventures using the equity method

Quarterly average utilization rates for the offshore fleet in operation

In % 2017 2016
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Marine Services 84.5 81.4 80.4 82.9 82.1 81.5 83.4 85.0
Deepwater offshore vessels 83.0 86.1 88.0 86.2 83.1 84.8 85.0 89.6
Shallow water offshore vessels 90.6 86.6 90.2 90.1 86.8 88.4 87.6 88.9
Crew boats 82.8 78.1 75.3 80.1 80.3 77.8 81.0 81.6
Subsea Services 80.6 89.6 83.3 85.2 91.4 78.6 78.6 88.9
"Total fleet excluding Crew boats" 86.2 86.7 88.3 87.7 85.7 85.9 85.8 89.2
"Total fleet" average utilization rate 84.3 81.8 80.6 83.0 82.5 81.4 83.2 85.2

Quarterly average utilization rates for the offshore fleet

In % 2017 2016
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Marine Services 53.6 52.9 52.7 54.3 57.1 59.9 64.5 70.3
Deepwater offshore vessels 61.3 62.2 60.3 61.0 60.5 66.4 69.7 77.2
Shallow water offshore vessels 45.6 42.1 40.0 35.6 44.6 53.1 62.5 71.3
Crew boats 55.0 55.1 56.4 61.4 62.2 61.1 63.8 67.5
Subsea Services 56.7 63.4 65.7 57.5 63.3 57.0 56.0 52.3
"Total fleet excluding Crew boats" 52.3 51.4 49.8 46.8 52.1 58.3 64.5 71.7
"Total fleet" average utilization rate 53.7 53.4 53.3 54.5 57.4 59.7 64.2 69.5

Quarterly average daily rates for the offshore fleet

In US$/day 2017 2016
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Deepwater offshore vessels 13,660 13,781 14,863 15,084 15,526 16,492 16,537 17,630
Shallow water offshore vessels 8,220 8,371 8,749 9,534 9,958 10,365 10,712 11,967
Crew boats 4,422 4,453 4,393 4,270 4,359 4,473 4,405 4,538
Subsea Services 31,425 34,304 37,976 37,488 35,195 37,182 39,583 44,119
"Total fleet excluding Crew boats" average daily rate 12,844 13,685 14,955 15,267 15,081 15,260 15,265 16,299

Quarterly contractualization rates for the offshore fleet

In % 2017 2016
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Deepwater offshore vessels 38.4 27.0 36.0 44.9 43.8 38.2 46.1 61.8
Shallow water offshore vessels 35.1 24.4 31.1 27.1 24.8 26.3 42.1 53.4
Crew boats 37.9 31.6 41.3 37.2 43.9 41.8 41.8 55.6
Subsea Services 27.3 18.2 22.7 31.8 27.3 45.5 36.5 50.0
Total 36.8 28.4 36.9 35.7 38.2 37.3 42.4 55.8

Quarterly number of vessels (end of period)

In number of vessels* 2017 2016
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Marine Services 486 489 490 491 491 491 490 492
Deepwater offshore vessels 86 89 89 89 89 89 89 89
Shallow water offshore vessels 131 131 132 133 133 133 133 133
Crew boats 269 269 269 269 269 269 268 270
Subsea Services 22 22 22 22 22 22 22 22
FLEET TOTAL 508 511 512 513 513 513 512 514

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

Yearly revenue breakdown

In millions of euros Full Year
2017 2016
Marine Services 627.4 864.1
Deepwater offshore vessels 256.9 337.0
Shallow water offshore vessels 154.2 279.2
Crew boats 216.3 247.8
Subsea Services 220.1 217.2
Other 13.1 21.3
Total adjusted revenues 860.6 1,102.6
IFRS 11 impact* (67.0) (82.0)
TOTAL CONSOLIDATED 793.6 1,020.6

*Effect of consolidation of joint ventures using the equity method

Yearly average utilization rates for the offshore fleet

In % Full Year
2017 2016
Marine Services 53.4 62.9
Deepwater offshore vessels 61.2 68.4
Shallow water offshore vessels 40.8 57.9
Crew boats 56.9 63.6
Subsea Services 60.7 57.1
"Total fleet excluding Crew boats" 50.1 61.6
"Total fleet" average utilization rate 53.7 62.7

Yearly average daily rates for the offshore fleet

In US$/day Full Year
2017 2016
Deepwater offshore vessels 14,389 16,524
Shallow water offshore vessels 8,669 10,848
Crew boats 4,418 4,394
Subsea Services 35,328 38,624
"Total fleet excluding Crew boats" average daily rate 14,157 15,466

Yearly deliveries of vessels

In number of vessels Full Year
2017 2016
Marine Services 0 5
Deepwater Offshore vessels 1
Shallow water Offshore 0
Crew boats 4
Subsea Services 0 0
FLEET TOTAL 0 5

Breakdown of revenues by geographical region

In millions of euros Quarter Full Year
Q4 2017 Q3 2017 Change Q4 2016 2017 2016 Change
Africa 113.4 118.9 -4.6% 135.9 497.7 616.4 -19.2%
Europe & Mediterranean/Middle East 31.6 31.1 +1.6% 42.0 123.0 158.3 -22.3%
Americas 32.3 36.0 -10.3% 45.4 147.6 216.6 -31.9%
Asia 19.7 18.3 +7.5% 21.0 92.3 111.3 -17.1%

Other key indicators

Quarterly breakdown

2017 2016
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Average €/US$ exchange rate for the quarter (in €) 1.18 1.17 1.10 1.06 1.08 1.12 1.13 1.10
€/US$ exchange rate at closing (in €) 1.20 1.18 1.14 1.07 1.05 1.12 1.11 1.14
Average price of Brent for the quarter (in US$/bbl) 61 55 51 54 49 46 46 34

Annual breakdown

Full Year
2017 2016
Average 12-month €/US$ exchange rate in (€) 1.13 1.11
€/US$ exchange rate at closing (in €) 1.20 1.05
Average 12-month price of Brent (in US$/bbl) 54 44

Financial Glossary & Others Definitions

Adjusted data: internal reporting (and thus adjusted financial information) records the performance of operational joint ventures in which the Group has joint control by the full consolidation method. 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).

EBITDA: operating margin before depreciation, amortization and impairment.

EBITDAR: revenue less direct operating costs (except bare-boat rental costs) and general and administrative costs.

EBIT: EBITDA after increases and reversals of amortization, depreciation provisions and impairment and share in income/loss of associates, but excluding capital gains on equity interests sold.

Capital employed: including (i) shareholders' equity, (ii) provisions (including net deferred tax), (iii) net debt; they are also defined as the sum (i) of net non-current assets (including advances on fixed assets), (ii) working capital requirement, and (iii) net assets held for sale.

Average capital employed excl. installments: is understood as the average of the capital employed at the beginning of the period and end of the period, excluding installments on fixed assets.

Free cash-flows: net cash flows from operating activities after including incoming payments and disbursements related to acquisitions and sales of property, plant and equipment and intangible assets.

Utilization rate: over a period, number of revenue-generating days divided by the number of calendar days.

Utilization rate of the fleet in operation: over a period, number of revenue-generating days divided by the number of calendar days, for non-stacked vessels.

Contractualization rate: ratio between the number of vessels under long term contract and total number of vessels operated by BOURBON, long term contract being defined as having a remaining term equal or superior to 6 months.

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 8,400 skilled employees. Through its 37 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 2017, BOURBON'S revenue came to €860.6 million and the company operated a fleet of 508 vessels.

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

Contacts


BOURBON Media relations agency
Publicis Consultants
Investor Relations, analysts, shareholders Vilizara Lazarova
+33 140 138 607
Investor-relations@bourbon-online.com
+33 144 824 634
vilizara.lazarova@consultants.publicis.fr
Corporate Communication
Christelle Loisel
+33 491 136 732
christelle.loisel@bourbon-online.com

Attachment:

http://www.globenewswire.com/NewsRoom/AttachmentNg/785bbfc3-c77f-4a31-8ad3-42078436147f

Source: Bourbon