Bourbon Revenue Up on Forex Gains

French vessel owner and provider of marine and subsea services, Bourbon, has booked a rise in revenues for the first quarter of the year backed by favorable foreign exchange rate environment.

Bourbon generated $422 million (€383.6 million) over the three months to March 31, up 15% compared to the $366.4 million (€333 million) in revenue booked during the first quarter of 2014.

However, compared to the previous quarter (4Q 2014), revenues decreased approximately 5% from $427.5 million (€388.5 million) due to decline in utilization and average daily rate.

Furthermore, Bourbon informed that all of its segments had a reduction in activity during the 1st quarter:

“Average daily rates were down slightly year-on-year with declines in all Marine Services segments. The increase in adjusted revenues year-on-year was mostly due to improved foreign exchange rates,” the company informed in its 1Q report.

In addition, Bourbon saw a drop in utilization rates in all segments compared with 1Q 2014, as market conditions continued to put pressure on utilization rates, particularly in the North Sea and Asia, while Brazil showed relative strength.

As for the subsea services division, Bourbon booked €67 million in revenues, up almost 23% compared to the corresponding period in 2014, and relatively flat with 4Q 2014.

Subsea average daily rates were up approximately $5,000 per day. At the end of 1Q 2015, the company’s subsea fleet expanded with 3 more vessels, compared to the year-ago period, however, the utilization rate has lessened some 18%.