BOURBON: Press Release : 2nd Quarter and First Half 2011 Revenue

Aug 10, 2011, 01:30 ET from BOURBON

PARIS, August 10, 2011 /PRNewswire/ --

 

An Increase of Utilization Rate up to 84.7% in a Recovering Offshore Market

+18.8% Growth in Half-Year Revenues to 482.7 Million Euros at Current Exchange Rates

"The steady increase in the fleet's utilization rates, particularly in shallow water offshore, illustrates the recovery of the offshore market and our clients' recognition of the performance of our vessels. Although significant, the improvement in daily charter rates, expected at the end of the year and in 2012, has not yet been a factor in increasing revenues," says Christian Lefèvre, Chief Executive Officer of BOURBON. "Despite an EBITDA nearly 20% higher from one half to the next, the net result of the period will be negative due to the adverse impact of the dollar exchange rate on our financial results."

     (in millions of euros)       Second Quarter             First Half
                                              Change                   Change
                                                at                       at
                                             current                  current
                                             exchange                 exchange
                             Q2 2011 Q2 2010  rates   H1 2011 H1 2010  rates
    Marine Services            191.1   166.5   +14.8%   376.1   315.2   +19.3%
          of which deepwater
            offshore vessels    74.4    79.8    -6.8%   149.2   153.7    -2.9%
      of which shallow water
            offshore vessels    58.9    35.9   +64.0%   113.3    66.7   +70.0%
          of which crewboats    57.8    50.7   +13.9%   113.6    94.8   +19.8%
    Subsea Services             41.6    38.4    +8.2%    82.4    67.9   +21.3%
    Other                       14.5    11.2   +29.1%    24.2    23.3    +3.8%
    BOURBON TOTAL              247.2   216.1   +14.4%   482.7   406.4   +18.8%


In the second quarter of 2011, BOURBON revenues amounted to 247.2 million euros, up 14.4% (+19.2% at constant exchange rates) compared with the same period in 2010 and 4.9% (+9.2% at constant exchange rates) compared with the first quarter of 2011.

Compared with the same quarter of the previous year, revenues for Marine Services were 14.8% higher at 191.1 million euros. This rise is mainly due to strong performance from the shallow water offshore vessels segment which posted a 64% growth in revenues and a sharp upswing in its utilization rate (+14.8 points).

Subsea Services revenues were up 8.2%, at 41.6 million euros, thanks to the improvement in utilization rates and expansion of the fleet.

In the first half, revenues were up 18.8% (19.6% at constant exchange rates) compared with the same period in 2010 thanks to the performance of shallow water offshore and, to a lesser extent, that of the Crewboats segment and the Subsea Services Activity.

Indicators for BOURBON activity

  • BOURBON fleet (owned vessels)
                                                                    First
                                           Second Quarter          Quarter
    BOURBON                          Q2 2011 Q2 2010   Change      Q1 2011
    Number of vessels (end of
    period)                             424     389      +35 vessels  418
    Average utilization rate           84.7%   81.0%    +3.7 pts     83.1%


During the quarter, BOURBON took delivery of 11 new vessels (1 deepwater offshore vessel, 5 shallow water offshore vessels and 5 crewboats).

The fleet's average utilization rate continued to increase, climbing to 84.7% in the second quarter of 2011 (+3.7 points compared with the second quarter of 2010). It was also up against the first quarter of 2011
(+1.6 points) and the fourth quarter of 2010 (+3.6 points).

  • Geographic breakdown of BOURBON's revenues
                                   Second Quarter            First Half
      (in millions of euros)   Q2 2011 Q2 2010 Change  H1 2011 H1 2010 Change
                        Africa   147.9   137.9    7.2%   298.7   260.3   14.8%
                      Europe &
     Mediterranean/Middle-East    50.8    33.5   51.5%    88.3    61.4   43.8%
            American Continent    29.4    23.8   23.6%    59.4    44.5   33.5%
                          Asia    19.0    20.8   -8.7%    36.2    40.1   -9.7%


The share of the Europe & Mediterranean / Middle East segment in the Group's revenues increased considerably year-on-year at 20.6%, due, among other factors, to the expansion of the activity in Turkey. From one quarter to another, this represented an increase of 13.3 million euros.

Africa is still BOURBON's main geographic region.

  • MARINE SERVICES
                                       Q2 2011   Q2 2010    Change    Q1 2011
    Revenues (in millions of euros)      191.1     166.5    +14.8%      185.1
    Number of vessels (end of period)      406       373      +33 vessels 400
    Average utilization rate              84.2%     80.6%    +3.6 pts    82.7%


Compared with the second quarter of 2010, the activity of Marine Services shows an increase of 14.8% higher to 191.1 million euros. This increase is principally due to the growth of the shallow water offshore segment (+64%).

As anticipated, the utilization rate continued to improve over the quarter: by 3.6 points year-on-year, by
1.5 points over the previous quarter, and by 3.5 points compared with the fourth quarter of 2010.

Compared with the first quarter of 2011, Marine Services saw a significant increase in its activity in the shallow water offshore vessels segment, buoyed by a strong market in Africa and an upturn in activity in Asia at the end of the monsoon.

The progressive start-up of the offshore activity in the US portion of the Gulf of Mexico prompted the relocation of American vessels from West Africa and the Middle East to this area, a trend which is likely to intensify till the end of the year.

Indicators by segment

  • Deepwater offshore vessels
                                        Q2 2011  Q2 2010  Change %   Q1 2011
    Revenues (in millions of euros)         74.4     79.8    -6.8%      74.8
    Number of vessels (end of period)         70       69      +1 vessel  69
    Average utilization rate                86.9%    92.1%   -5.2 pts   88.1%
    Average daily rate ($/d)              19,154   19,978    -4.1%    18,835


Compared with the second quarter of 2010, revenues generated by deepwater offshore vessels in the second quarter of 2011 recorded a 6.8% decrease at 74.4 million euros, representing 39% of the total Marine Services activity.Two new vessels joined the fleet; the average utilization rate although remaining high, saw a slight decline as did the average daily rate.

The deepwater offshore activity was slightly reduced, largely due to the anticipation of the technical stoppages for certain vessels and persistent overcapacity on the large AHTS.

Compared with the first quarter of 2011, revenues were virtually stable despite a new vessel joining the fleet, as the small increase in daily rates was offset by the adverse trend in utilization rates.

  • Shallow water offshore vessels
                                        Q2 2011  Q2 2010   Change %   Q1 2011
    Revenues (in millions of euros)         58.9     35.9     +64%       54.4
    Number of vessels (end of period)         85       67     +18 vessels  81
    Average utilization rate                90.2%    75.4%  +14.8 pts    84.8%
    Average daily rate ($/d)              12,883   12,371    +4.1%     12,653


Compared with the second quarter of 2010, revenues from shallow water offshore vessels in the second quarter of 2011 were up sharply (+64%) at 58.9 million euros and now account for nearly 31% of total revenues for the Marine Services activity; the vessel utilization rate climbed to 90.2%, up 14.8 points year-on-year, at a time when the fleet gained 18 new vessels.

Compared with the first quarter of 2011, revenues were up 8.2%.The utilization rate continued to increase sharply (+ 5.4 points) from one quarter to another.

This performance reflects a strong demand from clients for Bourbon Liberty vessels; 66 of these vessels were in operation as of June 30, 2011.

  • Crewboats
                                        Q2 2011  Q2 2010    Change    Q1 2011
    Revenues (in millions of euros)         57.8     50.7   +13.9%       55.8
    Number of vessels (end of period)        251      237     +14 vessels 250
    Average utilization rate                81.4%    78.6%   +2.8 pts    80.5%
    Average daily rate ($/d)               4,361    4,021    +8.4%      4,263


Compared with the second quarter of 2010, crewboat revenues in the second quarter of 2011 were up 13.9% to 57.8 million euros, largely due to the expansion of the fleet (14 new crewboats) and an increase in daily rates.

Compared with the first quarter of 2011, revenues were 3.6% higher due to the improvement in daily rates.

  • SUBSEA SERVICES

The increase in revenues for the second quarter of 2011 was largely the result of an improvement in vessel utilization rates, due particularly to:

- a relatively low time out of action for dry dock overhaul (only 1 vessel underwent a programmed stoppage partially in this quarter);

- the establishment of a preventive maintenance policy leading to a reduction in the number of non-programmed interventions which result in operating vessels being out of action;

- a marketing strategy that led to a slight improvement in the number of days' chartering of the vessels.

During the quarter, the Subsea Services activity continued to develop its support services for the installation of wind farms in the North Sea.

In the second quarter, the Bourbon Enterprise, which had been operating in the Greater Gabbard area of the UK since June 2010, was relocated to the Bard wind farm off Germany where it is operating as a diving support vessel.

Bourbon Subsea Services continued to focus on improving its vessel utilization rates and maintained its growth target, with greater activity in support services for wind farms and expansion into new geographic regions.

                                       Q2 2011   Q2 2010   Change %  Q1 2011
    Revenues (in millions of euros)       41.6      38.4    +8.2%       40.7
    Number of vessels (end of period)       17        15      +2 vessels  17
    Average utilization rate              96.3%     89.8%   +6.5 pts    92.0%
    Average daily rate ($/d)            32,379    32,999    -1.9%     31,842


Compared with the second quarter of 2010, revenues for the Subsea Services Activity in the second quarter of 2011 came to 41.6 million euros, up 8.2%.This predominantly reflects the expansion of the fleet (arrival of 2 new IMR vessels and 3 subsea robots) and the improvement in fleet utilization rates (+6.5 points).

Compared with the first quarter of 2011, revenues increased slightly and the average utilization rate was 4.3 points higher.

  • OTHER

Compared with the second quarter of 2010, the use of external charters was up sharply, generating a 29.1% increase in "Other" revenues in the second quarter of 2011, to 14.5 million euros.

Compared with the first quarter of 2011, the use of external charters was up sharply, generating a 49.4% increase in "Other" revenues. This increase was largely the result of the full impact in the second quarter of 4 spot contracts in response to the client's demand for immediate logistics resources to start up exploration of a new field.

  • OUTLOOK

The market is still in a recovery phase, with an average price per barrel (Brent) of US$ 117 over the quarter. The sustained price per barrel of oil over the last several months has boosted investment in the offshore oil and gas sector.

Exploration/development capital expenditure forecasts for the sector have been revised upwards, with a 15% increase anticipated for 2011 versus 2010, instead of the 12% predicted previously, and this should have a strong knock-on effect for BOURBON's activity.

Orders for drilling equipment confirm the market's optimistic outlook, with 61 orders in the first half of 2011 compared with only 2 over the same period in 2010.

While average utilization rates for modern vessels on the market are rising, those for vessels over 25 years old are continuing to decline, confirming the already-evident trend of a preference among oil clients for chartering vessels that are modern, safer, more efficient and more reliable.

BOURBON's strategy, which is based on a very modern and high-performance fleet, positions the Group very favorably to reap the benefit of the upcoming increase in charter rates.

The policy of efficient management of fuel consumption of vessels operating for clients, implemented as part of the cost-reduction operating strategy, will also be a considerable advantage in a context of high oil prices.

As well as a gradual increase in utilization rates for modern vessels, the market is expecting daily rates to rise as of end of 2011 and in 2012.

BOURBON's 2011 results will continue to be affected by the euro/dollar exchange rate.

  • FINANCIAL CALENDAR

- Presentation of 1st half 2011 results    August 31, 2011

- 3rd quarter 2011 financial information    November 10, 2011

 

                                APPENDICES

  • Quarterly revenues
       (in millions of euros)         2011                  2010
                                    Q2     Q1      Q4     Q3    Q2    Q1
    Marine Services               191.1   185.1  173.4  171.7 166.5 148.7
    Deepwater offshore vessels     74.4    74.8   75.7   79.3  79.8  73.8
    Shallow water offshore
    vessels                        58.9    54.4   44.0   41.1  35.9  30.8
    Crewboats                      57.8    55.8   53.7   51.3  50.7  44.1
    Subsea Services

    IMR vessels                    41.6    40.7   40.2   41.6  38.4  29.5
    Other                          14.5     9.7    7.7    9.0  11.2  12.1
    GROUP TOTAL                   247.2   235.5  221.3  222.2 216.1 190.2


Average utilization rate of the BOURBON fleet

                   (in %)                   2011            2010
                                           Q2   Q1    Q4   Q3   Q2   Q1
    Deepwater offshore vessels            86.9 88.1  88.7 90.4 92.1 89.4
    Shallow water offshore vessels        90.2 84.8  74.2 71.0 75.4 72.4
    Crewboats                             81.4 80.5  80.5 77.4 78.6 75.9
    Average utilization rate Marine
    Services                              84.2 82.7  80.7 78.7 80.6 77.9
    Average utilization rate Subsea
    Services                              96.3 92.0  91.2 91.5 89.8 80.9
    Average utilization rate total fleet  84.7 83.1  81.1 79.2 81.0 78.1


Quarterly breakdown of the average daily rate for the BOURBON fleet

              (in $/day)                2011                  2010
                                      Q2     Q1      Q4     Q3     Q2     Q1
    Deepwater offshore vessels     19,154 18,835  18,637 19,244 19 978 19,406
    Shallow water offshore vessels 12,883 12,653  12,255 12,420 12,371 12,623
    Crewboats                       4,361  4,263   4,160  3,863  4,021  4,135
    IMR vessels                    32,379 31,842  31,485 32,491 32,999 33,707


Quarterly commissioning of vessels

       (in number of vessels)        2011              2010
                                    Q2   Q1    Q4   Q3    Q2    Q1
    FLEET TOTAL                     11   10    12   16    18    15
    Marine Services                 11   10    11   15    18    14
    Deepwater offshore              1    0     -     1     1     -

    Shallow water offshore          5    3     4     6     8     8

    Crewboats                       5    7     7     8     9     6
    Subsea Services / IMR           0    0     1     1     0     1


  • Breakdown of half-year indicators

Marine Services

                                     H1 2011  H1 2010    Change    H2 2010
    Revenues (in millions of euros)     376.1    315.2   +19.3%      345.1
    Number of vessels (end of
    period)                               406      373     +33 vessels 390
    Average utilization rate             83.4%    79.3%   +4.1 pts    79.8%
    Average daily rate ($/d)            8,641    8,582    +0.7%      8,559


Of which deepwater offshore vessels

                                     H1 2011  H1 2010   Change   H2 2010
    Revenues (in millions of euros)     149.2    153.7   -2.9%    155.0
    Number of vessels (end of
    period)                                70       69     +1 vessel 69
    Average utilization rate             87.5     90.7%  -3.2 pts  89.5%
    Average daily rate ($/d)           18,994   19,725   -3.7%   18,935


Of which shallow water offshore vessels

                                     H1 2011  H1 2010    Change    H2 2010
    Revenues (in millions of euros)     113.3     66.7    +70%       85.1
    Number of vessels (end of
    period)                                85       67    +18 vessels  78
    Average utilization rate             87.5%    74.0% +13.5 pts    72.7%
    Average daily rate ($/d)           12,821   12,488   +2.7%     12,332


Of which crewboats

                                     H1 2011  H1 2010    Change    H2 2010
    Revenues (in millions of euros)     113.6     94.8   +19.8%       105.1
    Number of vessels (end of
    period)                               251      237     +14 vessels  243
    Average utilization rate             80.8%    77.3%   +3.5 pts     79.1%
    Average daily rate ($/d)            4,319    4,079    +5,9%       4,070


Subsea Services

                                     H1 2011  H1 2010    Change   H2 2010
    Revenues (in millions of euros)      82.4     67.9  +21.3%      81.7
    Number of vessels (end of
    period)                                17       15     +2 vessels 17
    Average utilization rate             94.2%    85.4%  +8.8 pts   91.3%
    Average daily rate ($/d)           32,117   33,328   -3.6%    31,961


  • Other key indicators
                                            2011               2010
                                          Q2    Q1     Q4    Q3    Q2    Q1
    Average EUR/$ exchange rate for the
    quarter (in EUR)                     1.44  1.37   1.33  1.29   1.27  1.38
    EUR/$ exchange rate at closing (in
    EUR)                                 1.45  1.42   1.34  1.36   1.23  1.35
    Average price of Brent for the
    quarter (in $/bl)                     117   105     86    77     78    76


About BOURBON

BOURBON offers oil & gas companies with the most demanding requirements a comprehensive range of surface and subsea marine services for offshore oil & gas fields and wind farms, based on an extensive range of latest-generation vessels.The Group provides a local service through its 26 operating subsidiaries, close to clients and their operations, and it guarantees the highest standards of service quality and safety worldwide.

BOURBON, a pure player in offshore, has two operating Activities:Marine Services and Subsea Services.

BOURBON also protects the French coastline for the French Navy.

Under the "BOURBON 2015 Leadership Strategy" plan, the company is investing US$2 billion in a large fleet and by 2015 it will have 600 innovative and high-performance offshore vessels.

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 and 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
    jerome.goaer@consultants.publicis.fr
    Véronique Duhoux +33(0)1-44-82-46-33
    veronique.duhoux@consultants.publicis.fr
    Vilizara Lazarova +33(0)1-44-82-46-34
    vilizara.lazarova@consultants.publicis.fr

    BOURBON
    Investors - Analysts - Shareholders Relations
    Patrick Mangaud +33(0)1-40-13-86-09
    patrick.mangaud@bourbon-online.com
    Communications Department
    Christa Roqueblave +33(0)1-40-13-86-06
    christa.roqueblave@bourbon-online.com


SOURCE BOURBON