France: BOURBON Reports First Quarter Results

Commenting on the first quarter results, Christian Lefèvre, Chief Executive Officer of BOURBON, said: ““As anticipated at the end of 2010, the market recovery is contributing to pushing vessel utilization rates up to 83.1% whilst daily rates are slightly higher than those in the fourth quarter of 2010. More rigorous demands from clients with regard to the safety and quality of operations is hastening the process of old vessel replacement by new vessels and is favorable for BOURBON’s services offer. In this context, BOURBON’s 8,350 employees – and their fleet of 418 vessels with an average age of 5.5 years – are perfectly positioned to respond fully to our clients’ needs.””

Compared with the first quarter of 2010, revenues in the 1st quarter of 2011 totaled €235.5 million, up 23.8%, reflecting both the commissioning of 56 new vessels in the period as well as the market’s gradual recovery.

“Marine Services” revenues were up 24.4% at €185.1 million, due partly to the impact of expansion of the continental offshore fleet, a segment in which the Group is continuing its strategy to replace old and obsolete vessels.

“Subsea Services” revenues were up 38.3% at €40.7 million, boosted by the commissioning of two new vessels.

Compared with the fourth quarter of 2010, revenues were up 6.4%.

BOURBON fleet (owned vessels)

During the quarter, BOURBON took delivery of 10 new vessels (3 continental offshore vessels and 7 crewboats).

At 83.1% in the first quarter of 2011, the fleet’s average utilization rate improved significantly, up 5 points compared with the first quarter of 2010 and was higher than in the fourth quarter of 2010.

SUBSEA SERVICES

Medium-size and large vessels are preferred for the construction activity anticipated for 2011, an activity which is expected to be reinforced in 2012 and 2013 as few vessels of this size are available. Opportunities and calls for tender are increasing in new geographic sectors, both for vessels and associated services, particularly in Asia and Australia.

The smaller vessels segment continues to be subjected to a volatile market although a positive trend emerged at the end of the quarter. The North Sea activity has been sustained in the developing sector of wind farms and this should continue in the second quarter of 2011.

Our objective is to focus on the utilization rate and integrated services by developing new geographical regions for BOURBON. Utilization rates were maintained, while the decline in the average daily rate was due to lower prices for small vessels.

Compared with the first quarter of 2010, revenues for the Subsea Services activity in the first quarter of 2011 were significantly higher at €40.7 million, up 38.3%. This reflects the expansion of the fleet (arrival of 2 new IMR vessels and 3 subsea robots) and the improvement in fleet utilization rates (+11.1 points).

Compared with the fourth quarter of 2010, revenues were stable (+1.5%), with the average utilization rate and the average daily rate for IMR vessels slightly higher.

More info:  Bourbon

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Source: bourbon ,May 11, 2011;