PARIS, August 29, 2012 /PRNewswire/ --
Revenues: +17.7%
EBITDA: +27.2% to €180.8 million
Net income, group share: €17 million
"Against the backdrop of a continuing favorable market environment, BOURBON reports growth in line with the BOURBON 2015 Leadership Strategy plan, as the positive impact of the increase in average daily rates applies to an expanding fleet", says Christian Lefèvre, BOURBON's Chief Executive Officer. "With the relative slowdown in the rate of commissioning of new vessels, our focus is now more than ever on safety, operational excellence and cost control."
BOURBON Marine Services Subsea Services
Change/H1 Change/H1 Change/H1
H1 2012 2011 H1 2012 2011 H1 2012 2011
Number of
vessels
+22 +22
(end of period) 446 vessels 428 vessels 17 +0
in millions of
euros
Revenues 568.0 +17.7% 460.4 +22.4% 92.1 +11.9%
EBITDA 180.8 +27.2% 142.6 +42.7% 34.9 +1.0%
EBIT 63.8 +48.2%
Total
Shallow fleet
Deepwater water excl.
Offshore offshore IMR crewboats Crewboats
Utilization
rate
(in %) H1 2012 91.9 88.5 87.7 89.7 78.9
H2 2011 92.1 87.5 92.7 89.8 80.9
H1 2011 87.5 87.5 94.2 88.2 80.8
Average daily
rate (in US$/d) H1 2012 20,145 13,519 37,866 18,352 4,678
H2 2011 20,163 12,872 34,030 18,000 4,380
H1 2011 18,994 12,821 32,117 17,451 4,319
H1 2012 highlights
- With a satisfactory utilization rate, the growth in revenues reflects a favorable trend in rates combined with a positive impact from the dollar, which enabled the Group to post a disproportionate increase in earnings before interest and tax (EBIT) (+27.2% and +48.2%).
- The positive effects of BOURBON's cost-reduction strategy, especially for the Crewboats segment, are apparent in the first half of the year, offsetting the impact of the many scheduled classification dry-dock periods in Subsea Services.
Net income, group share recovered to €17 million, from the €21.4 million loss in the first half of 2011.
Half-year results
Change Change
H1 H1
2012 / 2012 /
H2 H1
in millions of euros H1 2012 H2 2011 2011 H1 2011 2011
Revenues 568.0 525.3 +8.1% 482.7 +17.7%
Gross operating income (EBITDA) 180.8 158.2 142.1
+14.3% +27.2%
% of revenues 31.8% 30.1% 29.4%
Operating income (EBIT) 63.8 42.2 +51.0% 43.1 +48.2%
Financial profit/(loss) (32.3) (8.9) (62.7) -48.5%
Income tax (7.1) (3.8) +87.3% (6.9) +2.9%
Income from discontinued
operations 0.8 (0.0) 0.5 +79.0%
Minority interests (8.3) (1.2) 4.5
Net income/(loss), Group share 17.0 28.2 -39.8% (21.4)
- Revenues
Compared to the first half of 2011, revenues are up 17.7% to €568 million, with a strong 20.5% overall increase in Marine Services and Subsea Services. This growth mainly stems from the expansion of the fleet, particularly in the Shallow water Offshore segment (with 12 more vessels than in H1 2011), the rise in average daily rates and the firmer dollar exchange rate (14.5% at constant exchange rates).
Compared to the second half of 2011, revenues grew 8.1% (+3.9% at constant exchange rates), driven essentially by the Shallow water Offshore and Crewboats segments, which gained 20.1% and 10.2%, respectively. These gains primarily reflect the expansion of the fleet, the improvement in daily rates and the firmer dollar.
The sharp increase in average daily rates in Subsea Services more than offset the impact of Classification
dry-dock periods.
- Gross operating income (EBITDA)
Compared to the first half of 2011, at €180.8 million, gross operating income (EBITDA) for the first half of 2012 was up 27.2%. This increase is clearly above the gain in revenues, since EBITDA reflects the impact of price increases combined with the strengthening of the dollar, which was however moderated somewhat by cost inflation. The improvement in EBITDA stems exclusively from Marine Services, while Subsea Services EBITDA remained stable, despite the numerous Classification dry-dock periods.
Compared to the second half of 2011, the 14.3% gain in EBITDA was substantially higher than the rise in revenues, reflecting the impact of price increases and the strengthening of the dollar. The increase is mainly due to the Shallow water Offshore vessels and Crewboats segments.
- Earnings before interest and tax (EBIT)
Compared to the first half of 2011, at €63.8 million, EBIT for H1 2012 increased 48.2%. As for EBITDA above, the improvement in daily rates combined with the stronger dollar explain this growth rate, largely surpassing the gain in revenues. This robust increase is mainly due to the performance of the Deepwater Offshore vessels and Crewboats segments.
Compared to the second half of 2011, EBIT is up 51%.
- Financial income / (loss)
In the first half of the year, financial loss amounted to a net charge of €32.3 million for a cost of net debt of
€33.7 million.
The change in currency exchange rates generated net financial income of €2.3 million. Note that the change in foreign exchange rates in H1 2011 resulted in a €30.5 million loss and a €29.2 million gain in H2 2011.
- Net income / (loss), Group share
Net income, Group share was positive at €17 million, compared to a €21.4 million loss in the same period the previous year. This marked improvement reflects the growth in EBIT and the absence of foreign exchange losses.
- MARINE SERVICES
Change Change
H1 2012 / H1 2012 /
H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Number of vessels (end of
period) 428 418 +10 406 +22
Utilization rate 83.2% 84.3% -1.1 pt 83.4% -0.2 pt
Change Change
H1 2012 / H1 2012 /
in millions of euros H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Revenues 460.4 416.8 +10.5% 376.1 +22.4%
Direct costs (269.7) (255.4) +5.6% (233.4) +15.6%
Operating margin 190.8 161.4 +18.2% 142.8 +33.6%
General and administrative
costs (48.2) (40.3) +19.5% (42.9) +12.4%
Gross operating income
(EBITDA) 142.6 121.5 +17.4% 100.0 +42.7%
% of revenues 31.0% 29.1% 26.6%
Compared to the first half of 2011, Marine Services revenues increased 22.4% to €460.4 million, with growth driven by the higher rates, especially in Deepwater Offshore, the expansion of the fleet, particularly the Shallow water Offshore fleet, and the firmer dollar. At €142.6 million, H1 EBITDA rose a steep 42.7%, almost twice the rate of growth of revenues. Profitability measured by the "EBITDA to average capital employed excluding installments" ratio improved by 3.3 percentage points to 12.9%. The three segments, Deepwater Offshore, Shallow water Offshore and Crewboats all contributed to this improvement.
Revenues gained 10.5%, compared to the second half of 2011, primarily due to the higher rates in the Shallow water Offshore and Crewboats segments, combined with the favorable impact of foreign exchange rates. EBITDA increased 17.4%.
Results by segment
- Deepwater Offshore vessels
Change Change
H1 2012 / H1 2012 /
H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Number of vessels (end of
period) 71 70 +1 vessel 70 +1 vessel
Utilization rate 91.9% 92.1% -0.2 pt 87.5% +4.4 pts
Change Change
H1 2012 / H1 2012 /
in millions of euros H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Revenues 175.0 169.2 +3.4% 149.2 +17.3%
Direct costs (94.0) (91.1) +3.2% (83.4) +12.7%
Operating margin 81.1 78.2 +3.7% 65.8 +23.2%
General and administrative
costs (18.3) (16.4) +11.6% (17.0) +7.7%
Gross operating income
(EBITDA) 62.8 61.8 +1.6% 48.8 +28.6%
% of revenues 35.9% 36.5% 32.7%
Compared to the first half of the previous year, revenues for the period from Deepwater Offshore vessels were up 17.3% to €175 million, due primarily to improved rates and a stronger dollar, and, to a lesser extent, a higher utilization rate at 91.9%. EBITDA increased at a stronger rate than revenues to €62.8 million, a 28.6% increase.
Compared to the second half of 2011, revenues and EBITDA increased slightly (by 3.4% and 1.6%, respectively).
- Shallow water Offshore
Change Change
H1 2012 H1 2012
/ /
H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Number of vessels (end of +6 +12
period) 97 91 vessels 85 vessels
Utilization rate 88.5% 87.5% +1 pt 87.5% +1 pt
Change Change
H1 2012 / H1 2012 /
in millions of euros H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Revenues 153.8 128.1 +20.1% 113.3 +35.7%
Direct costs (97.5) (84.2) +15.8% (72.0) +35.4%
Operating margin 56.4 43.9 +28.3% 41.4 +36.4%
General and administrative
costs (16.1) (12.4) +29.7% (12.9) +24.6%
Gross operating income
(EBITDA) 40.4 31.9 +26.7% 28.4 +42.1%
% of revenues 26.3% 24.9% 25.1%
Compared to the first half of 2011, revenues for the period from Shallow water Offshore vessels increased 35.7% to reach €153.8 million, mainly driven by the expansion of the fleet (+12 vessels in the past 12 months), the firmer dollar and the upturn in rates.
First-half EBITDA for the segment totaled €40.4 million, up 42.1%, proportionately outstripping the growth in revenues.
Compared to the second half of 2011, revenues for the period for this segment rose 20.1%, reaping the benefits of these same impacts. EBITDA increased 26.7% for the second half of the year.
Crewboats
Change Change
H1 2012 H1 2012
/ /
H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Number of vessels (end of +3 +9
period) 260 257 vessels 251 vessels
Utilization rate 78.9% 80.9% -2 pts 80.8% -1.9 pt
Change Change
H1 2012 / H1 2012 /
in millions of euros H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Revenues 131.6 119.4 +10.2% 113.6 +15.8%
Direct costs (78.3) (80.2) -2.3% (78.0) +0.3%
Operating margin 53.3 39.3 +35.7% 35.6 +49.7%
General and administrative
costs (13.8) (11.5) +19.7% (12.9) +6.3%
Gross operating income
(EBITDA) 39.4 27.8 +42.4% 22.7 +73.6%
% of revenues 30.0% 23.3% 20.0%
Compared to the first half of 2011, revenues for the Crewboats segment reached €131.6 million, up 15.8% thanks to the improvement in rates, the stronger dollar and the expansion of the fleet (+9 vessels in the past
12 months).
Rising by a steep 73.6%, EBITDA was €39,4 million, buoyed by the increase in revenues and excellent cost control.
Compared to the second half of 2011, revenues for the period for this segment increased 10.2%, mainly due to the higher rates. EBITDA for the second half of the year rose 42.4% for the same reasons.
- SUBSEA SERVICES
Change Change
H1 2012 / H1 2012 /
H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Number of vessels (end of
period) 17 18 -1 vessel 17 -
Utilization rate 87.7% 92.7% -5 pts 94.2% -6.5 pts
Change Change
H1 2012 / H1 2012 /
in millions of euros H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Revenues 92.1 90.4 +1.9% 82.4 +11.9%
Direct costs (47.6) (48.8) -2.5% (38.7) +23.0%
Operating margin 44.5 41.6 +7.1% 43.7 +2.0%
General and administrative
costs (9.6) (8.7) +10.3% (9.4) +2.7%
Gross operating income
(EBITDA) 34.9 32.9 +6.0% 34.6 +1.0%
% of revenues 37.9% 36.4% 42.0%
Compared to the first half of 2011, revenues posted by Subsea Services for the period rose 11.9% to
€92.1 million, while EBITDA remained practically stable. As a result, the ratio of EBITDA to Revenues dipped slightly from 42% to 37.9%.
Profitability measured by the "EBITDA to average capital employed excluding installments" ratio was 15.1%.
Compared to the second half of 2011, revenues improved very slightly, by 1.9%, as the positive impact of the stronger dollar and the increase in rates was largely offset by the effect of Classification dry-dock periods. EBITDA increased 6.0% due to good cost control.
To recap, two "small" IMR vessels were transferred from Subsea Services to Marine Services, and one
well-stimulation vessel was transferred from Marine Services to Subsea Services.
- OTHER
Change Change
H1 2012 / H1 2012 /
in millions of euros H1 2012 H2 2011 H2 2011 H1 2011 H1 2011
Revenues 15.4 18.1 -15.0% 24.2 -36.3%
Direct costs (11.4) (13.7) -16.6% (15.9) -28.4%
Operating margin 4.0 4.4 -10.2% 8.2 -51.6%
General and administrative
costs (0.7) (0.7) +5.7% (0.7) +8.3%
Gross operating income
(EBITDA) 3.3 3.8 -13.1% 7.6 -56.8%
% of revenues 21.2% 20.8% 31.3%
"Other" mainly includes the business from the cement carrier Endeavor, externally chartered offshore vessels, as well as items not included in the two other Activities. The decline in revenues and EBITDA reflects the slowdown in external chartering in the Offshore activities.
- OUTLOOK
Despite the continued uncertainty surrounding global economies, investments by oil and gas sector clients continue to be backed by the price per barrel (US$113 on average for the first half of the year), while demand for offshore service vessels is predicted to increase over the next two years.
Orders for drilling rigs due to be commissioned in the next few years and the order books of offshore construction companies are set to stimulate demand for vessels.
In Shallow water Offshore, accelerating the process of replacing older vessels (deemed obsolete) on the market seems vital in order to meet the increasingly stringent risk management demands of oil and gas companies. Clients will continue to favor innovative, high-productivity vessels, which is where BOURBON's fleet of vessels is particularly appreciated. The global Deepwater Offshore fleet continues to increase with new orders for "large" PSVs. In line with its strategy of taking into account the risk of over-capacity, BOURBON has very limited exposure to this market and concentrates on medium-sized vessels, for which demand remains strong in international markets.
BOURBON's earnings are influenced by the €/US$ exchange rate. Accordingly, BOURBON set up €/US$ hedging contracts to cover the entirety of its estimated EBITDA exposure in 2012. These dollar forward sales were made at an average exchange rate of €1 = US$1.3070.
- ADDITIONAL INFORMATION
- In August 2012, typhoon Haikui struck China, affecting the construction of 15 vessels in Sinopacific's shipyards in Zhejiang. The estimated delay for delivery and transfer of title to BOURBON of these vessels is five to six months.
- The accounts for the first half of 2012 were closed by the Board of Directors on Monday, August 27, 2012.
- The accounts for the first half of 2012 underwent a limited examination by the statutory auditors.
- FINANCIAL CALENDAR
- Publication of Q3 2012 Revenues November 7, 2012
- Publication of Q4 and
full-year 2012 Revenues February 6, 2013
- Presentation of 2012 Annual Results March 6, 2013
The financial data related to the results for H1 2012 include this press release as well as the presentation of the press conference, which will be available on the Group's website on August 29, 2012 at 12:00pm, at the end of the press conference scheduled for this date.
View the press conference live or recorded on our website,http://www.bourbon-online.com
APPENDIX I
Simplified consolidated balance sheet
in millions of euros
6/30/2012 12/31/2011 6/30/2012 12/31/2011
Shareholders'
equity 1,387 1,417
Net property,
plant and Financial debt
equipment 3,319 3,244 > 1 year 1,502 1,565
Other Other
Non-current Non-current
assets 99 101 liabilities 140 134
TOTAL TOTAL
NON-CURRENT NON-CURRENT
ASSETS 3,418 3,345 LIABILITIES 1,642 1,699
Other current Financial debt
assets 518 484 < 1 year 734 620
Cash on hand Other current
and in banks 185 230 liabilities 358 323
TOTAL CURRENT TOTAL CURRENT
ASSETS 703 714 LIABILITIES 1,092 943
Non-current Non-current
assets held liabilities
for sale - - held for sale - -
TOTAL
TOTAL ASSETS 4,121 4,059 LIABILITIES 4,121 4,059
APPENDIX II
Consolidated Cash Flow Statement
in millions of euros
H1 2012 H1 2011
Consolidated net income (loss) 25.3 (25.9)
Cash flow (*) 145.5 86.1
Net cash flow from operating activities(*) 168.1 64.0
Net cash flow consumed by investing
activities (*) (164.1) (121.5)
Of which acquisition of property, plant
and equipment and intangible assets (165.6) (166.9)
Of which sale of property, plant and
equipment and intangible assets 1.2 31.0
Net cash flow from/(consumed by) financing
activities(*) (167.0) (98.6)
Of which increase (decrease) in borrowings (81.2) (15.1)
Of which dividends paid to shareholders of
the group (53.3) (53.2)
Of which net financial interest paid (33.7) (30.2)
Impact from the change in exchange rates (0.0) (2.5)
Net cash increase (decrease) (163.0) (158.7)
Net cash at beginning of period (44.0) (61.1)
Net cash at end of period (207.0) (219.7)
Net cash increase (decrease) (163.0) (158.7)
* Including discontinued operations
APPENDIX III
Quarterly revenue breakdown
(In EUR millions) 2012 2011
Q2 Q1 Q4 Q3 Q2 Q1
Marine Services 238.4 222.1 216.5 200.3 191.1 185.1
Deepwater offshore vessels 88.5 86.5 87.5 81.7 74.4 74.8
Shallow water offshore
vessels 83.4 70.5 66.6 61.5 58.9 54.4
Crewboats 66.4 65.1 62.4 57.0 57.8 55.8
Subsea Services
IMR vessels 46.4 45.7 48.1 42.3 41.6 40.7
Other 5.2 10.2 8.5 9.6 14.5 9.7
GROUP TOTAL 290.0 278.0 273.1 252.2 247.2 235.5
Quarterly average utilization rates for the BOURBON offshore fleet
(in %) 2012 2011
Q2 Q1 Q4 Q3 Q2 Q1
Deepwater offshore vessels 91.3 92.5 93.7 90.2 86.9 88.1
Shallow water offshore vessels 92.5 84.3 88.3 86.4 90.2 84.8
Crewboats 78.6 81.0 82.1 79.7 81.4 80.5
Marine Services average utilization
rate 83.9 83.7 85.5 83.0 84.2 82.7
Subsea Services average utilization
rate 89.7 85.7 91.0 94.0 96.3 92.0
Total fleet excluding Crewboats
average utilization rate 91.8 87.6 90.7 88.7 89.5 86.9
Total fleet average utilization rate 84.0 83.7 85.7 83.4 84.7 83.1
Quarterly average daily rates for the BOURBON offshore fleet
(in US$/day) 2012 2011
Q2 Q1 Q4 Q3 Q2 Q1
Deepwater offshore vessels 20,480 20,011 20,222 20,547 19,154 18,835
Shallow water offshore vessels 13,773 13,290 12,681 13,179 12,883 12,653
Crewboats 4,763 4,447 4,349 4,409 4,361 4,263
IMR vessels 38,018 38,181 34,516 33,822 32,379 31,842
Total fleet excluding
Crewboats average daily rate 18,526 18,309 17,965 18,303 17,498 17,354
Quarterly commissioning of vessels
(in number of vessels) 2012 2011
Q2 Q1 Q4 Q3 Q2 Q1
TOTAL FLEET 6 8 3 15 11 10
Marine Services 6 8 2 15 11 10
Deepwater Offshore vessels 2 0 0 0 1 0
Shallow water Offshore 1 3 1 6 5 3
Crewboats 3 5 1 9 5 7
Subsea Services / IMR 0 0 1 0 0 0
Half-year revenue breakdown
(In EUR millions) 2012 2011
H1 H2 H1
Marine Services 460.4 416.8 376.1
Deepwater Offshore vessels 175.0 169.2 149.2
Shallow water Offshore 153.8 128.1 113.3
Crewboats 131.6 119.4 113.6
Subsea Services
IMR vessels 92.1 90.4 82.4
Other 15.4 18.1 24.2
GROUP TOTAL 568.0 525.3 482.7
Half-year average utilization rates for the BOURBON offshore fleet
(in %) 2012 2011
H1 H2 H1
Deepwater Offshore vessels 91.9 92.1 87.5
Shallow water Offshore 88.5 87.5 87.5
Crewboats 78.9 80.9 80.8
Marine Services average utilization
rate 83.2 84.3 83.4
Subsea Services average utilization
rate 87.7 92.7 94.2
Total fleet excluding Crewboats average
utilization rate 89.7 89.8 88.2
Total fleet average utilization rate 83.3 84.6 83.8
Half-year average daily rates for the BOURBON offshore fleet
(in US$/day) 2012 2011
H1 H2 H1
Deepwater Offshore vessels 20,145 20,163 18,994
Shallow water Offshore 13,519 12,872 12,821
Crewboats 4,678 4,380 4,319
IMR vessels 37,866 34,030 32,117
Total fleet excluding Crewboats
average utilization rate 18,352 18,000 17,451
Half-year commissioning of vessels
(in number of vessels) 2012 2011
H1 H2 H1
TOTAL FLEET 14 18 21
Marine Services 14 17 21
Deepwater Offshore vessels 2 0 1
Shallow water Offshore 4 7 8
Crewboats 8 10 12
Subsea Services / IMR 0 1 0
Breakdown of BOURBON revenues by geographical region
Second quarter First half
(In EUR millions) Q2 2012 Q2 2011 Change H1 2012 H1 2011 Change
Africa 176.9 147.9 19.6% 356.2 298.7 19.2%
Europe &
Mediterranean/Middle East 50.2 50.8 -1.0% 96.3 88.3 9.1%
American Continent 36.6 29.4 24.2% 70.4 59.4 18.4%
Asia 26.3 19.0 38.2% 45.1 36.2 24.4%
Other key indicators
Quarterly breakdown
2012 2011
Q2 Q1 Q4 Q3 Q2 Q1
Average EUR/US$ exchange rate for
the quarter (in EUR) 1.28 1.31 1.35 1.41 1.44 1.37
EUR/US$ exchange rate at closing (in
EUR) 1.26 1.34 1.29 1.35 1.45 1.42
Average price of Brent for the
quarter (in US$/bbl) 108 119 109 113 117 105
Half-yearly breakdown
2012 2011
H1 H2 H1
Average EUR/US$ exchange rate for
the half year (in EUR) 1.30 1.38 1.40
EUR/US$ exchange rate at closing
(in EUR) 1.26 1.29 1.45
Average price of Brent for the
half year (in US$/bbl) 113 111 111
About BOURBON
BOURBON offers the most demanding oil and gas companies a comprehensive range of surface and subsea marine services for offshore oil and gas fields and wind farms, based on a extensive range of latest-generation vessels. The Group provides a local service through its 27 operating subsidiaries, close to clients and their operations, guaranteeing the highest standards of service quality and safety worldwide.
BOURBON has two Businesses (Marine Services and Subsea Services) and also protects the French coastline for the French Navy.
Under the "BOURBON 2015 Leadership Strategy" plan, the Group is investing in a large fleet of innovative and high-performance offshore vessels built in series.
In 2011, BOURBON posted revenues of €1.008 billion and operated a fleet of 446 vessels as of June 30, 2012.
Classified by ICB (Industry Classification Benchmark) in the "Oil Services" sector, BOURBON is listed for trading on Euronext Paris, Compartment A, participates in the Deferred Settlement Service ("SRD") and is included in the SBF 120, CAC Mid 60 and Dow Jones Stoxx 600 indices.
Contacts
Publicis Consultants
Jérôme Goaer +33-(0)1-44-82-46-24 - [email protected]
Véronique Duhoux +33-(0)1-44-82-46-33 - [email protected]
Vilizara Lazarova +33-(0)1-44-82-46-34 - [email protected]
BOURBON
Investors - Analysts - Shareholders Relations
Patrick Mangaud +33-(0)1-40-13-86-09 - [email protected]
Corporate Communication
Christa Roqueblave +33-(0)1-40-13-86-06 - [email protected]
SOURCE BOURBON
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