France: BOURBON Revenues Rise in 1Q 2012

Revenues continue to rise in the first quarter of 2012 in a market showing significant improvement; 18.0% rise compared with the 1st quarter of 2011 and +1.8% rise compared with the 4th quarter of 2011.

“BOURBON is reaping the benefits of a booming market in the offshore oil & gas marine services, encouraged by the stability of the price of Brent (an average of US$ 119 a barrel in the first quarter of 2012). This quarter’s business growth of 18% is in line with the BOURBON 2015 Leadership Strategy plan,” announced Christian Lefèvre, Chief Executive Officer of BOURBON. “BOURBON continues to enjoy this positive business climate as new vessels are gradually commissioned and existing contracts are renewed.”

First quarter 2012 shows three highlights:

– BOURBON performed well (utilization rate) despite a large number of planned class dockings: 5 in deepwater offshore, 8 in shallow water offshore, and 2 in Subsea Services; In Marine Services, average increase of 10% in daily rates for the new supply vessels commissioned (3 in shallow water offshore) and for renewals of expiring contracts (6 in deepwater offshore and 19 in shallow water offshore); The growth in demand from clients gradually led to a disappearance of over-capacity, as illustrated by payment for vessel mobilization. This has been the case for 30% of the new contracts for supply and IMR vessels since January 2012.

– Compared with the first quarter of 2011, BOURBON posted revenues of 278.0 million euros (359 ml USD), up 18.0% (17.8% at constant exchange rates) with the addition of 37 vessels to the fleet (including 20 crewboats). This growth was observed in all BOURBON’s business segments and operating areas.

– Compared with the fourth quarter of 2011, BOURBON’s revenues rose 1.8%, impacted generally by the numerous vessel class dockings in the deepwater and shallow water offshore segments of Marine Services as well as Subsea Services; effect of the winter season in the North Sea in deepwater offshore and the end of the monsoon in Southeast Asia in the shallow water offshore segment.

During the quarter, BOURBON took delivery of 8 new vessels (3 shallow water offshore vessels and 5 crewboats), while 2 crewboats were withdrawn from the fleet in the period.

The average utilization rate of the fleet was up 0.6 point over the same period in 2011 and was down 2 points compared with the fourth quarter of 2011, owing mainly to the numerous planned class dockings.

Subsea Services

Compared with the first quarter of 2011, revenues in the first quarter of 2012 rose by 12.1% to 45.7 million euros under the positive full-time effect of adding a new IMR vessel to the fleet in late 2011.

Compared with the fourth quarter of 2011, revenues were down 5.1%, impacted by the planned class docking of 2 vessels and by the weak wind farm activity in the North Sea, which picked up only in late March.

It is noted that 2 small IMR vessels were transferred from Subsea Services to Marine Services, and that a stimulation vessel was transferred from Marine Services to Subsea Services.

Aside from the vessels under construction of which it plans to take delivery, over the next 9 months, BOURBON will renew contracts for at least 46 supply vessels in the Marine Services Activity and 4 IMR vessels in Subsea Services Activity, enjoying the benefits of improved charter rates.

BOURBON’s results are influenced by the €/US$ exchange rate. Therefore BOURBON has set up foreign exchange hedges to cover the entire estimated exposure of EBITDA to the €/US$ exchange rate in 2012. These forward sales of dollars were set up at the average exchange rate of 1€ = 1.3070US$.

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Subsea World News Staff, May 10, 2012; Image: BOURBON