Red Ink Flows for Bourbon
Bourbon has seen its net loss more than doubled in 2017 as revenues slipped some 22 percent and impairment charges hiked.
French vessel owner and offshore services provider booked a net loss of €576 million ($712 million) for the twelve months in 2017. This result compares with €279 million ($345 million) loss for the corresponding period in 2016.
Full-year 2017 adjusted revenues fell from €1.1 billion in 2016 to €860 million, with overall average daily rates down 9 percent.
For 2017, Bourbon saw its average utilization rate at 53.7 percent, against 62.7 percent in 2016. Utilization rate of the fleet in operation was 82.4 percent, slightly down compared to 83.1 percent in 2016.
Bourbon recognized 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.
The company’s subsea segment brought in 2017 adjusted revenues of €220 million, up slightly against revenues in 2016, offset by increased costs and impairments, leading to negative EBIT of €27.6 million. Utilization rate increased 3.6 percent, however, average daily rates decreased 8.5 percent.
Bourbon said that continued activity drop 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.
Subsea World News Staff