BOURBON 2014 1st Quarter Revenues Were €320.0 Million, an Increase of 7.9% at Constant Exchange Rates (2.9% at Current Rates)
BOURBON confirms its objective of 8-10% growth in revenues for 2014 with a slight increase in the EBITDAR/revenue margin
PARIS, April 30, 2014 /PRNewswire/ --
- Quarterly revenues rose 7.9% (at constant rates) partly due to a 7.1% increase in the size of the fleet. 1st quarter activities were impacted sequentially by seasonal effects in the North Sea and in South East Asia.
- The fleet utilization rate excluding Crewboats was over 90%, helped by stronger activity in the shallow market in West Africa.
- Average daily rates stable overall, with a strong increase in Subsea Services (+12.4%) and smaller increases in the Deepwater and Crewboat segments, partly due to vessel mix and geographic effects.
- Foreign exchange rate movements continued to have an impact on revenues, partly offsetting the addition of new vessels in some segments and improvements in average daily rates and utilization rates in others.
Consolidated revenues for the 1st quarter of 2014 were established for the first time according to the new accounting standards IFRS 10, IFRS 11 and IFRS 12 relating to consolidation which became mandatory as of January 1, 2014. Specifically, joint ventures on which BOURBON has joint control are now consolidated using the equity method which replaces the proportionate consolidation method. Comparative figures are restated accordingly.
The financial information is presented by Activity and by segment based on the internal reporting system and shows internal segment information used by the principal operating decision maker to manage and measure the performance of BOURBON (IFRS 8). The principles of internal reporting do not reflect the application of the new IFRS 10, IFRS 11 and IFRS 12. Consequently, joint ventures are still proportionately consolidated, as in previous years.
Quarter
increment increment
Q1 Q1
2014/2013 2014/2013
Current Constant
In millions of euros, except as noted Q1 2014 Q1 2013 rates rates Q4 2013
Marine Services 270.3 258.5 +4.6% 270.3
Deepwater offshore vessels 93.6 93.0 +0.7% 95.7
Shallow water offshore vessels 105.1 92.8 +13.3% 100.0
Crewboats 71.6 72.8 -1.6% 74.7
Subsea Services 52.0 51.6 +0.8% 55.4
Other 4.7 4.9 -4.3% 5.8
Total revenues by Activity/Segment 327.1 315.1 +3.8% +8.8% 331.6
Adjustments ** (7.0) (4.2) (6.0)
GROUP TOTAL 320.0 310.9 +2.9% +7.9% 325.6
Number of vessels (end of period) * 498 465 +33 vessels 485
Average utilization rate excl.
Crewboats 90.6% 88.7% +1.9 pts 90.1%
Average daily rate excl. Crewboats
(in US$/d) 19,497 19,427 +0.4% 19,329
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
** effect of consolidation of joint ventures using the equity method
"Sequentially, the first quarter saw a contrast in results between different segments, with satisfactory performance in shallow water and weaker performance in Deepwater and Crewboats. In Subsea, activity was supported by a utilization rate of more than 94%," says Christian Lefèvre, Chief Executive Officer of BOURBON. "Sequential revenues were impacted by seasonal effects while year on year results were impacted by foreign exchange rate movements. The trend in average daily rates is still positive and we anticipate an increase in activity for the rest of 2014."
MARINE SERVICES
Quarter
increment
Q1 2014 /
Q1 2014 Q1 2013 Q1 2013 Q4 2013
Revenues (in millions of euros) 270.3 258.5 +4.6% 270.3
Number of vessels (end of +34
period)* 479 445 vessels 466
Average utilization rate 82.4% 83.9% -1.5 pts 83.3%
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
The operational performance in the Deepwater and Shallow water segments in the 1st quarter were partially offset by the negative effect of foreign exchange rate movements and a weaker utilization rate in the Crewboats segment. Revenues were up 4.6% in the 1st quarter 2014 compared with the same period last year, due in part to a large number of deliveries during the past year. Seasonal effects in the North Sea and South East Asia impacted results in the 1st quarter compared with the 4th quarter of 2013
Marine Services indicators by segment
Deepwater offshore vessels
Quarter
increment
Q1 2014 /
Q1 2014 Q1 2013 Q1 2013 Q4 2013
Revenues (in millions of euros) 93.6 93.0 +0.7% 95.7
Number of vessels (end of
period)* 73 73 No change 72
Average utilization rate 88.6% 86.6% +2 pts 90.1%
Average daily rate (in US$/day) 22,839 21,392 +6.8% 22,241
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
Market conditions overall in the first quarter contributed to higher utilization rates and higher average daily rates compared with the same period last year. Several new contracts and extensions of existing contracts were secured at higher rates as well as the addition of some larger PSV into the segment. The sequential decline in utilization rates compared with the 4th quarter of 2013 was partly due to seasonal effects in the North Sea and to a lesser degree due to a higher number of classification drydocks, which were at a similar level compared with the same period last year. The increases in both average daily rates and utilization rates have been partly offset by the impact of foreign exchange rate movements.
Shallow water offshore vessels
Quarter
increment
Q1 2014 /
Q1 2014 Q1 2013 Q1 2013 Q4 2013
Revenues (in millions of euros) 105.1 92.8 +13.3% 100.0
Number of vessels (end of +25
period)* 130 105 vessels 122
Average utilization rate 91.2% 89.8% +1.4 pts 90.2%
Average daily rate (in US$/day) 14,199 14,315 -0.8% 14,013
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
The trend for modern and efficient vessel demand is still present in the Shallow water market. The revenue growth in the first quarter of 2014 compared with the same period last year was largely driven by vessel deliveries and an increase in the utilization rate. Revenues also benefited from reduced classification drydocks in the quarter both sequentially and year on year. Average daily rates declined slightly as newbuild vessels were almost exclusively allocated to the Asia and Mediterranean/Middle East/India regions where daily rates are generally lower than those of other regions such as West Africa.
Crewboats
Quarter
increment
Q1 2014 /
Q1 2014 Q1 2013 Q1 2013 Q4 2013
Revenues (in millions of euros) 71.6 72.8 -1.6% 74.7
Number of vessels (end of +9
period) 276 267 vessels 272
Average utilization rate 76.6% 80.8% -4.2 pts 78.4%
Average daily rate (in US$/day) 5,323 5,034 +5.7% 5,309
The reduced utilization rates both year on year and sequentially were partly due to slower growth conditions in a competitive market in West Africa. Average daily rates improved year on year due to the addition of FSIV vessels which earn higher daily rates than other smaller crewboats.
SUBSEA SERVICES
Quarter
increment
Q1 2014 /
Q1 2014 Q1 2013 Q1 2013 Q4 2013
Revenues (in millions of euros) 52.0 51.6 +0.8% 55.4
Number of vessels (end of
period) * 18 19 -1 vessel 18
Average utilization rate 94.4% 90.6% +3.8 pts 89.2%
Average daily rate (in US$/day) 45,407 40,405 +12.4% 43,120
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
IMR activity in West Africa has continued to show demand growth, particularly among contractors. During the first quarter, 2 new vessels (the 4th and 5th vessels in the Bourbon Evolution series) entered the fleet yet had no impact on revenues due to the timing of their availability. In addition, Subsea services continued to align its fleet positioning strategy with the transfer of 2 smaller Subsea Services vessels to Marine Services, which had a negative impact on revenues and a positive impact on average daily rates due to the mix effect.
OTHER
Quarter
increment
Q1 2014 /
Q1 2014 Q1 2013 Q1 2013 Q4 2013
Revenues (in millions of euros) 4.7 4.9 -4.3% 5.8
Using chartered vessels has two advantages for BOURBON: it makes it possible to meet client demands and generate contracts while new vessels are being built and added to the fleet. Using chartered vessels also enables BOURBON to offer vessels that are not part of its regular line of services when needed for global calls for tenders. Volatility of "Other" revenues is largely due to the variation in the number of chartered vessels during the period.
OUTLOOK
The demand for offshore vessels continues to grow, helped by a relatively stable oil price during the past several years.
Oil & gas companies have launched capital discipline campaigns impacting mostly onshore projects while in the offshore market, project focus is shifting towards high return projects and enhanced oil recovery from existing fields.
Even though their have been fewer awards to contractors from oil & gas companies, their backlog is still strong and we do not foresee an impact in 2014 on offshore Marine and Subsea Services Activities.
Deepwater offshore vessel demand growth is being driven by high return projects. The high number of large PSVs coming out of the shipyards could negatively affect the spot market. This should have only a small impact on BOURBON, taking into account the high contractualization rate of its PSVs.
The demand in the shallow water offshore market remains driven by the renewal of the fleet with modern, safe and efficient vessels, strengthened further by projects using enhanced oil recovery on existing fields and by new jack ups entering into service.
The Bourbon Evolution 800 series is progressively finding its place and is becoming a reference for IMR duties for deep offshore fields, reducing oil & gas field operating costs through high technical availability and low fuel consumption. The first 4 vessels in this series are currently under contract. The subsea market remains supported by the growth of subsea wellheads to be delivered.
MAJOR OPERATIONS AND HIGHLIGHTS
In line with the "Transforming for beyond" "Asset Smart" action plan, a total of 21 vessels were transferred to ICBCL during 2013, as part of the sale and bareboat charter agreement for up to 51 vessels signed with ICBCL on April 9, 2013. Thus far in 2014, 15 additional vessels have been transferred (4 Deepwater vessels, 10 Shallow water vessels, 1 Subsea Services vessel) for US$464 million. This brings the total vessels transferred under the deal with ICBCL to 36 vessels for a total amount of US$986 million.
In the agreement signed in November 2013 with Standard Chartered Bank ("SCB") for the sale and bareboat charter of 6 new build vessels, the ownership of the first 3 vessels were transferred in 2013 for US$65 million and the remaining 3 vessels will be delivered to SCB during the second half of 2014.
The Company notes that on March 16, 2014, JACCAR HOLDINGS announced its intention to propose a bid for BOURBON shares at a price of 24 euros (with dividend rights attached) per share. The main elements of this proposed offer can be found in the press release issued by BOURBON on March 17, 2014. On March 17, 2014, the Autorité des marchés financiers (AMF) published a decision indicating that the announcement of the offer marks the start of the pre-offer period during which the provisions relating to tradings (Articles 231-38 to 231-43 of the General Regulation of the AMF) and the reports of transactions (Articles 231-44 to 231-52 the General Regulations of the AMF) are applicable to shares in BOURBON. The draft offer remains subject to review by the AMF.
ADDITIONAL INFORMATION
- While there was some hedging activity in the first half of 2013, since the beginning of the 3rd quarter of this year, BOURBON no longer has any hedging in place. At constant exchange rates, 1st quarter 2014 revenues rose 7.9% compared with the same period last year
- BOURBON's results will continue to be affected by the €/US$ exchange rate
FINANCIAL CALENDAR
- Shareholders' Meeting May 20, 2014
- 2014 1st Half Results press release and presentation September 3, 2014
- 2014 3rd Quarter Revenues press release November 6, 2014
APPENDIX
Quarterly revenue breakdown
In millions of euros 2014 2013
Q1 Q4 Q3 Q2 Q1
Marine Services 270.3 270.3 267.0 268.7 258.5
Deepwater offshore vessels 93.6 95.7 100.6 102.3 93.0
Shallow water offshore vessels 105.1 100.0 93.0 90.1 92.8
Crewboats 71.6 74.7 73.4 76.3 72.8
Subsea Services 52.0 55.4 58.9 57.3 51.6
Other 4.7 5.8 6.5 6.7 4.9
Total revenues by Activity/Segment 327.1 331.6 332.4 332.8 315.1
Adjustments * (7.0) (6.0) (7.8) (4.3) (4.2)
GROUP TOTAL 320.0 325.6 324.6 328.5 310.9
* effect of consolidation of joint ventures using the equity method
Quarterly average utilization rates for the BOURBON offshore fleet
In % 2014 2013
Q1 Q4 Q3 Q2 Q1
Marine Services 82.4 83.3 82.4 82.4 83.9
Deepwater offshore vessels 88.6 90.1 88.8 90.0 86.6
Shallow water offshore vessels 91.2 90.2 90.2 89.1 89.8
Crewboats 76.6 78.4 77.5 77.7 80.8
Subsea Services 94.4 89.2 93.6 88.0 90.6
"Total fleet excluding Crewboats" 90.6 90.1 90.0 89.3 88.7
"Total fleet" average utilization
rate 82.8 83.5 82.9 82.6 84.2
Quarterly average daily rates for the BOURBON offshore fleet
In US$/day 2014 2013
Q1 Q4 Q3 Q2 Q1
Deepwater offshore vessels 22,839 22,241 22,683 22,092 21,392
Shallow water offshore vessels 14,199 14,013 13,728 13,850 14,315
Crewboats 5,323 5,309 5,204 5,122 5,034
Subsea Services 45,407 43,120 41,331 40,644 40,405
"Total fleet excluding Crewboats"
average daily rate 19,497 19,329 19,573 19,458 19,427
Quarterly deliveries of vessels
In number of vessels 2014 2013
Q1 Q4 Q3 Q2 Q1
Marine Services 12 10 9 9 9
Deepwater offshore vessels 2 1 0 1 1
Shallow water offshore vessels 6 5 8 4 3
Crewboats 4 4 1 4 5
Subsea Services 2 0 0 0 1
FLEET TOTAL 14 10 9 9 10
Breakdown of BOURBON revenues by geographical region
In millions of euros 2014 2013
Q1 Q4 Q3 Q2 Q1
Africa 191.1 186.1 186.8 190.5 187.0
Europe & Mediterranean/Middle East 52.5 56.7 63.3 57.7 50.2
Americas 43.9 46.7 44.6 49.9 46.3
Asia 39.6 42.0 37.7 34.6 31.6
Other key indicators
Quarterly breakdown
2014 2013
Q1 Q4 Q3 Q2 Q1
Average EUR/US$ exchange rate for the
quarter (in EUR) 1.37 1.36 1.32 1.31 1.32
EUR/US$ exchange rate at closing (in
EUR) 1.38 1.38 1.35 1.31 1.28
Average price of Brent for the
quarter (in US$/bbl) 108 109 110 102 112
About BOURBON
As a leader in offshore marine services, BOURBON offers the most demanding oil & gas companies a comprehensive range of surface and subsea marine services for offshore oil & gas fields and wind farms. These services are based on an extensive range of latest-generation vessels and the expertise of more than 11,000 competent professionals. The Group provides local service through its 28 operating subsidiaries, close to clients and their operations, and it guarantees the highest standards of service quality and safety worldwide.
BOURBON has two Activities (Marine Services and Subsea Services) and also protects the French coastline for the French Navy.
In 2013, BOURBON posted revenues of €1.312 billion and as of March 31, 2013, it operated a fleet of 498 vessels.
Under its "BOURBON 2015 Leadership Strategy" plan, the Group is investing in a large fleet of innovative and high-performance offshore vessels built-in series.
The latest action plan "Transforming for beyond" in its financial aspect aims at the sale and bareboat chartering for 10 years of US$2.5 billion of new or existing vessels. The first phase of the program has been signed for 51 vessels and up to US$1.5 billion with ICBC Financial Leasing.
Through "Transforming for beyond", BOURBON wants to enlarge the scope of achievable strategies beyond 2015 and be ready to deliver growth and value creation further.
Classified by ICB (Industry Classification Benchmark) in the "Oil Services" sector, BOURBON is listed for trading on Euronext Paris, Compartment A, and is included in the Deferred Settlement Service SRD, in the SBF 120 and CAC Mid 60 index.
CONTACTS
BOURBON
Investors - Analysts - Shareholders Relations
James Fraser, CFA +33(0)4-91-13-35-45 - [email protected]
Communication Department
Christelle Loisel +33(0)1-40-13-86-06 - [email protected]
PR Agency : 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]
SOURCE BOURBON
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