03/05/2018 06:02:13

BOURBON: 1st Quarter 2018 Financial information

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Marseilles, May 3, 2018

BOURBON 1st Quarter 2018 financial information

Adjusted revenue for the 1st quarter 2018 amounted to €171 million (consolidated revenue was €157.6 million), down 13.2% compared to the 4th quarter 2017, impacted by the reduced activity in Subsea Services

  • The 1st quarter 2018 reflected a challenging Offshore services market, mainly impacted by deteriorated conditions in Subsea and Shallow water offshore. However, average utilization rates in Marine & Logistics improved, in particular in Deepwater offshore (+3.9 points compared to the 4th quarter 2017 and +4.2 points compared to the 1st quarter 2017).

  • Although still affected by the overcapacity in Supply vessels, average daily rates stabilized.

  • In the Subsea activity, business remained weak for vessels servicing contractors' construction work, leading to a sharp decline in average utilization rates (-17.7 points compared to the 4th quarter 2017).  

  • Weakening of the US dollar against euro weighed on this quarter revenue.

 

Q1 2018

Q4 2017

Var

Q1 / Q4

Q1 2017  
 

 

   

 

 

 
 

Financial performance (in € millions)

   

 

 

 
 

Adjusteda revenues

171.0

196.9

-13.2%

225.5  
 

(change at constant rates)

   

-7.3%

 

 
 

Bourbon Marine & Logistics

92.4

100.1

-7.7%

105.9

 
 

Bourbon Mobility

48.2

51.0

-5.5%

58.9

 
 

Bourbon Subsea Services

27.2

43.6

-37.6%

56.6

 
 

Other

3.1

2.1

+47.0%

4.1

 
  IFRS 11 impact* (13.3) (15.3)

 

(20.6)  
 

Consolidated revenues

157.6

181.6

-13.2%

204.9  
 

 

   

 

 

 
 

Operational indicators

 

 

 

 

 
  Number of vessels (End of period)**

506

508

-2 vessels

514  
  Average utilization rate

53.0%

53.7%

-0.7 pt

54.5%  
  Average daily rates (in US$/day)

8,179

8,299

-1.4%

8,769  

* Effect of consolidation of jointly controlled companies using the equity method.

** Vessels operated by BOURBON (including vessels owned or on bareboat charter).

 

 

 

 

"In an Offshore services market that has been impacted over the long-term by vessel overcapacity, utilization rates in both Deepwater offshore and Shallow water offshore are now heading in the right direction and prices stabilizing. The Subsea business is being hampered by the weakness in the contractors' activity and a reduced number of turnkey projects", declared

Gaël Bodénès, Chief Executive Officer of BOURBON Corporation. "The rollout of our strategic action plan#BOURBONINMOTIONisunderway and we are thus positioning ourselves optimallyto benefit from the market upturn underthe best competitive conditions."

(a) Adjusted data:

The adjusted 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 internal reporting (and thus the adjusted financial information) records the performance of operational joint ventures on which the group has joint control using the full integration method. Adjusted comparative figures are restated accordingly. Furthermore, internal reporting (and again the adjusted financial information) does not take into account IAS 29 (Financial Reporting in Hyperinflationary Economies), applicable for the first time in 2017 (retroactively from January,1) to an operational joint venture in Angola.

BOURBON MARINE & logisctics

Q1 2018

Q4 2017

Var

Q1 / Q4

Q1 2017
 

 

 

 

 

Financial performance

 

 

 

 
Adjusted revenues  (in €M)

92.4

100.1

-7.7%

105.9

(change at constant rates)

 

 

-0.7%

 

Deepwater offshore vessels

57

.4

60.0

-4.3%

68.8

Shallow water offshore vessels

35.0

40.2

-12.8%

37.1

 

 

 

 

 

Operational indicators

 

 

 

 
Number of vessels (end of period)*

216

217

-1

222
Average utilization rate

 

 

52.7%

51.9%

+0.8 pt

45.8%

Deepwater offshore vessels

65.2%

61.3%

+3.9 pts

61.0%

Shallow water offshore vessels

44.

3%

45.6%

-1.3 pt

35.6%

Average daily rate (US$/d)

10,911

10,802

+1.0%

12,501

Deepwater offshore vessels

13,577

13,660

-0.6%

15,084

Shallow water offshore vessels

8,292

8,220

+0.9%

9,534

         

*Vessels operated by BOURBON (including vessels owned or on bareboat charter).

 

Adjusted revenue in the Marine & Logistics business fell by 7.7% compared to the 4th quarter 2017, chiefly impacted by the dollar's weakening. At constant rates, the decline is contained at -0.7%.  

Although continuing to be affected by vessel overcapacity, daily rates remain low but are stabilizing. In Shallow water offshore in particular, these rates are not facilitating the recommissioning of vessels.

Average utilization rate remain stable in this market (+0.8 points compared to the previous quarter). In Deepwater offshore, average utilization rates have increased by nearly 4 points compared to the previous quarter, driven by the resumption of drilling activities and the recovery of the Asian market.

BOURBON MOBILITY

Q1 2018

Q4 2017

Var

Q1 / Q4

Q1 2017
 

 

 

 

 

Financial performance

 

 

 

 
Adjusted revenues (in €M)

48.2

51.0

-5

.

5%

58.9

(change at constant rates)

 

 

-0.2%

 

 

 

 

 

 

Operational indicators

 

 

 

 
Number of vessels (end of period)*

269

269

-

269
Average utilization rate

54.4%

55.0%

-0.6 pt

61.4%
Average daily rate (US$/d)

4

,

549

4,422

+2.9%

4,270
         

*Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Adjusted revenue for the 1st quarter fell 5.5% compared to the previous quarter, significantly impacted by the dollar's drop (-0.2% at constant rates). Average utilization rate (54.4 %) keeps resisting compared to the previous quarter, reflecting a market that seems to stabilize.

Average daily rates held up well, showing a steady rise since the 1st quarter 2017, sign of a mix effect of the reactivation of large "Crewliner"-type vessels (long-distance transport) and FSIVs. This resistance in prices also reveals a rise in demand for "Crewliner"-type vessels and recovery in the "spot" market for "interfield" vessels (daily transport of equipment and personnel between fields). The decline in the use of helicopters seems to be confirmed.

BOURBON Subsea Services

Q1 2018

Q4 2017

Var

Q1 / Q4

Q1 2017
 

 

 

 

 

Financial performance

 

 

 

 
Adjusted revenues (in €M)

27.2

43.6

-37

.

6%

56.6

(change at constant rates)

 

 

-33.0%

 

 

 

 

 

 

Operational indicators

 

 

 

 
Number of vessels (end of period)*

21.0

22.0

-1

22.0
Average utilization rate

39.0%

56.7%

-17.7 pts

57.5%
Average daily rate (US$/d)

34,933

31,425

+11.2%

37,488
         

               

*Vessels operated by BOURBON (including vessels owned or on bareboat charter).

This 1st quarter 2018 remains marked by the weakness in activity for vessels servicing contractors' construction work, which could last throughout the year.

New contracts in West Africa have been slow to get off the ground, leading to a 17.7 points decrease in the average utilization rate compared to the previous quarter. Recovery in the Asian market has been sluggish, but should prove more dynamic in the 2nd quarter, as for the Middle East.

Turnkey projects activity is still low this quarter compared to the 1st quarter 2017, also affecting revenue.

Other

Q1 2018

Q4 2017

Var

Q1 / Q4

Q1 2017
 

 

 

 

 

Financial performance

 

 

 

 
Adjusted revenues (in €M)

3.1

2.1

+47.0%

4.1
         

Activities included are those that do not fit into either Marine & Logistics, Mobility or Subsea Services. The majority of the total represents earnings from miscellaneous ship management activities.

OUTLOOK

While investments notably in onshore projects clearly seem to have resumed, investment growth in the offshore sector is expected to be very gradual in 2019. Prices will be held down by vessel overcapacity in the PSV and AHTS segments.  

Clients now concentrate on short term and quick Return on investment's projects but launch exploration campaigns to renew their reserve and therefore face the growing demand.

In this context, BOURBON concentrates its efforts on cash preservation and costs reduction.  

In order to benefit from the announced upturn, BOURBON deploys its action plan #BOURBONINMOTION to steer its business model towards more integrated services, capitalize on digital revolution to connect its fleet and make its new organization more agile and decentralized.

MAJOR EVENTS AND OPERATIONS

 

BOURBON has initiated discussions with its main financial partners, both in France and abroad, in order to balance the servicing of its debt with the expected gradual market recovery and the corresponding upturn in the group's performance. As a consequence, a general waiver should be finalized with BOURBON's leasers and debt holders in order to allow the group to withhold all payments.

In this context, the group has suspended servicing both its leases and debt commitments, during the negotiation period. This allows BOURBON to focus on its operational priorities and market turnaround and should encourage all parties to make negotiations as short as possible.

The general meeting of the Bondholders held on April 20 has authorized BOURBON to postpone this interest payment for an approximate amount of €3.9 million by one year (payment initially due on April 24, 2018).

The company is confident in its ability to find before year end a balanced solution with all its lenders - often long-standing partners - that suits all parties and allows the company to adapt its financing to its future development.

ADDITIONAL INFORMATION

BOURBON's results will continue to be influenced by the €/US$ exchange rate.

FINANCIAL CALENDAR

Combined General Shareholders' Meeting May 30, 2018
2018 1st Half Results press release and presentation September 6, 2018
2018 3rd Quarter Financial Information press release November 8, 2018

 

APPENDIX

Quarterly adjusted revenue breakdown

In € millions

 

2018

 

2017

 

Q1

Q4

Q3

Q2

Q1

Bourbon Marine & Logistics   92.4   100.2 97 .7 107.4 105.9

Deepwater offshore vessels

 

57.4

 

60.0

59.9

68.3

68.8

Shallow water offshore vessels

 

35.0

 

40.2

37.8

39.1

37.1

Bourbon Mobility   48.2   51.0 51.4 55.0 58.9
Subsea Services 27.2   43.6 52.1 67.8 56.6
Other   3.1   2.1 3.0 3.8 4.1

Total adjusted revenues

 

171.0

 

196.9

204.3

234.0

225.5

IFRS 11 impact*   (13.3)   (15.3) (11.9) (19.2) (20.6)

TOTAL CONSOLIDATED

 

157.6

 

181.6

192.4

214.7

204.9

       * Effect of consolidation of joint ventures using the equity method.

Quarterly average utilization rates for the offshore fleet in operation

In %

2018

2017

Q1

Q4

Q3

Q2

Q1

Bourbon Marine & Logistics

89.0

88,1

90,0

84,3
55,7

84,9

84.5

81.4

80.4

82.9

Deepwater offshore vessels

88.1

83.0

86.1

88.0

86.2

Shallow water offshore vessels

90.0

90.6

86.6

90.2

90.1

Bourbon Mobility

84.3

82.8

78.1

75.3

80.1

Subsea Services

55.7

80.6

89.6

83.3

85.2

Average utilization rate

84.9

84.3

81.8

80.6

83.0

 

Quarterly average utilization rates for the offshore fleet

In %

2018

2017

Q1

Q4

Q3

Q2

Q1

Bourbon Marine & Logistics

52,7 53,6 52.7 52,7 54,3

65,2

61,3

62,2

60,3

61,0

44,3

45,6

42,1

40,0

35,6

54,4 55,0 55,1 56,4 61,4
39,0 56,7 63,4 65,7 57,5

53,0

53,7

53,4

53,3

54,5

53.6

52.9

52.7

54.3

Deepwater offshore vessels

65.2

61.3

62.2

60.3

61.0

Shallow water offshore vessels

44.3

45.6

42.1

40.0

35.6

Bourbon Mobility

54.4

55.0

55.1

56.4

61.4

Subsea Services

39.0

56.7

63.4

65.7

57.5

Average utilization rate

53.0

53.7

53.4

53.3

54.5

Quarterly average daily rates for the offshore fleet

In US$/day

 

2018

 

2017

 

Q1

 

Q4

Q3

Q2

Q1

Bourbon Marine & Logistics   10,911   10,802 11,082 11,830 12,501

Deepwater offshore vessels

 

13,577

 

13,660

13,781

14,863

15,084

Shallow water offshore vessels

 

8,292

 

8,220

8,371

8,749

9,534

Bourbon Mobility   4,549   4,422 4,453 4,393 4,270
Bourbon Subsea Services   34,933   31,425 34,304 37,976 37,488

Average daily

rate

 

12,515

 

12,844

13,685

14,955

15,267

Quarterly number of vessels (end of period)

In number of vessels*

 

2018

 

2017

 

Q1

Q4

Q3

Q2

Q1

Bourbon Marine & Logistics   216   217 220 221 222

Deepwater offshore vessels

 

87

 

 

86

89

89

89

Shallow water offshore vessels

129

131

131

132

133

Bourbon Mobility 269 269 269 269 269
Bourbon Subsea Services   21   22 22 22 22

FLEET TOTAL

 

506

 

508

511

512

514

        * Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Breakdown of BOURBON adjusted revenues by geographical region

In € millions

 

2018

 

2017

 

Q1

Q4

Q3

Q2

Q1

Africa   99.9   113.4 118.9 135.3 130.1
Europe & Mediterranean/Middle East   26.2   31.6 31.1 31.6 28.8
Americas   27.0   32.3 36.0 38.1 41.3
Asia   17.9   19.7 18.3 29.0 25.3

 

 

Other key indicators

 

 

2018

 

2017

 

Q1

 

Q4

Q3

Q2

Q1

Average €/US$ exchange rate for the quarter (in €)   1.23   1.18 1.17 1.10 1.06
€/US$ exchange rate at closing (in €)   1.23   1.20 1.18 1.14 1.07
Average price of Brent for the quarter (in US$/bbl)   67   61 55 51 54

About BOURBON

Among the market leaders in marine services for offshore oil & gas, BOURBON offers the most demanding oil & gas companies a wide range of marine services, both surface and sub-surface, for offshore oil & gas fields and wind farms. These extensive services rely on a broad range of the latest-generation vessels and the expertise of almost 8,400 skilled employees. Through its 29 operating subsidiaries the group provides local services as close as possible to customers and their operations throughout the world, of the highest standards of service and safety.

BOURBON provides three operating activities (Marine & Logistics, Mobility and Subsea Services) and also protects the French coastline for the French Navy.

In 2017, BOURBON'S revenue came to €860.6 million and the company operated a fleet of 508 vessels.

Placed by ICB (Industry Classification Benchmark) in the "Oil Services" sector, BOURBON is listed on the Euronext Paris, Compartment B.

Contacts

BOURBON

Media relations agency

Publicis Consultants

Investor Relations, analysts,

shareholders     

Vilizara Lazarova
+33 140 138 607   +33 144 824 634  

investor-relations@bourbon-online.com

vilizara.lazarova@consultants.publicis.fr

   

Corporate Communication

 
Christelle Loisel  
+33 491 136 732  

christelle.loisel@bourbon-online.com

 

 

 

 

 

PDF version


This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: BOURBON via Globenewswire

Attachment: PDF version.pdf

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