BOURBON Takes Profit Dive on Slowdown
BOURBON, a provider of wide range of marine services, both surface and sub-surface, for offshore oil & gas fields and wind farms, has delivered financial results for the first half of 2014.
BOURBON First Half 2014 Highlights:
– Adjusted revenues up 8.9% at constant rates, reflecting an increase in the size of the fleet, despite a lower utilization rate (adjusted revenues increased 1.5% at current rates);
– Adjusted EBITDAR as a percentage of adjusted revenues, remained at a stable level of 34.4% following good cost control over the period;
– Adjusted EBIT decreased more than 50% largely due to €41.8 million increase in bareboat charter costs year on year, not fully offset by capital gains;
– Positive free cash flow of almost €250 million enabled further debt reduction for a total of €556 million since June 30, 2013.
“Offshore markets duringthe first half of 2014 were affected by a slowdown in activity, partly due to cost reductions by oil & gas companies and delays on some projects,” says Christian Lefèvre, Chief Executive Officer of BOURBON. “BOURBON showed strong improvement in cost control while taking delivery of 23 vessels during the period, bringing the total number of vessels under operation to 500 offshore vessels.”
Since last year, 2 vessels were transferred from Subsea Services to Marine Services and one has been sold, while two large Bourbon Evolution IMR vessels joined the fleet. Operationnal performance was stable, resulting in a good level of revenues, exchange rates permitting.
The market favors cost competitive solutions from IMR vessels, which translates into good demand for the new series of Bourbon Evolution still to be delivered.
The overall net income for the H1 2014 was 10.6 million euros. Compared to 30.9 million euros same time last year, it’s a drop of 65.7 percent.
September 03, 2014