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Thursday, 9 November 2017

BOURBON: Financial information 3rd quarter and 9 months 2017

BOURBON    

Published: 07:00 CET 09-11-2017 /GlobeNewswire /Source: BOURBON / : GBB /ISIN: FR0004548873


 

Paris, November 9, 2017

 

 

BOURBON Financial information 3rd quarter and 9 months 2017

Revenue for the 3rd quarter was down 12.7% (-9.2% at constant rates) compared to the 2nd quarter of 2017, still impacted by sluggish activity and strong pressure on rates, despite a few positive signs

  • In the Deepwater offshore and Shallow water offshore segments, customer willingness to launch exploration projects and renew medium and long-term contracts should be underlined. This is reflected in a slight increase in activity (average utilization rates up 2 points) although rates are still declining.
  • The Crew boats segments remained resilient, impacted by the monsoon seasonality in West Africa.
  • Revenue from the Subsea activity fell 23.1% compared to the 2nd quarter of 2017, mainly impacted by a lower number of turnkey projects.

 

 

Quarter

9 months

 

Q3 2017

Q3 2016

Var

2017/2016

Q2 2017

2017

2016

Var

2017/2016

Adjusted Revenues (a)

 

 

 

 

 

 

 

Marine Services

149.1

203.2

-26.6%

162.3

476.2

681.1

-30.1%

Deepwater offshore vessels

59.9

81.4

-26.4%

68.3

197.0

264.2

-25.4%

Shallow water offshore vessels

37.8

60.9

-38.0%

39.1

114.0

229.1

-50.2%

Crew boats

51.4

60.8

- 15.5%

55.0

165.2

187.8

-12.0%

Subsea Services

52.1

50.0

+4.3%

67.8

176.5

160.8

+9.8%

Others

3.0

5.9

-49.1%

3.8

11.0

16.3

-32.6%

Total adjusted revenues

(change at constant rates)

204.3

 

259.1

 

-21.2%

-17.7%

234.0

 

663.7

 

858.2

 

-22.7%

-22.8%

IFRS 11  impact***

(11.9)

(19.4)

 

(19.2)

(51.7)

(62.0)

 

GROUP TOTAL

192.4

239.7

-19.7%

214.7

612.1

796.2

-23.1%

Average utilization rate

Deepwater

Shallow water

Subsea

Crew boats

 

53.4%

62.2%

42.1%

63.4%

55.1%

59.7%

66.4%

53.1%

57.0%

61.1%

-6.3 pts

-4.2 pts

-11.0 pts

+6.4 pts

-6.0 pts

53.3%

60.3%

40.0%

65.7%

56.4%

53.7%

61.1%

39.2%

62.2%

57.6%

64.4%

71.0%

62.3%

55.1%

64.1%

-10.7 pts

-9.9 pts

-23.1 pts

+7.1 pts

-6.5 pts

Average daily rate (US$/j)

8,668

9,494

-8.7%

9,075

8,897

9,829

-9.48%

 

 

"Our customers have recovered some margin for maneuver but this is not yet reflected in Offshore activity. We believe that we have reached the low point of the cycle, however recovery will be slow. Our policy of operational excellence, cost control and cash preservation remains key in meeting the requirements of our customers," declares Gaël Bodénès, Chief Executive Officer of BOURBON Corporation.

 

"More than ever, BOURBON must transform in order to respond to this new cycle focused on operational excellence at optimum cost".

 

(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.

MARINE SERVICES

 

 

Quarter

9 months

Q3 2017

Q3 2016

Var

2017/2016

Q2 2017

2017

 2016

Var

2017/2016

Adjusted Revenues (in € millions)

149.1

203.2

-26.6%

162.3

476.2

681.1

-30.1%

Number of vessels (end of period)*

489

491

-2 vessels

490

491

491

-

Average utilization rate

52.9%

59.9%

-7.0 pts

52.7

53.3%

64.9%

-11.6 pts

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

The Marine Services business recorded an 8.1% decrease in its adjusted revenues compared to the 2nd quarter of 2017, mainly impacted by the renewal of the last long-term contracts at new market rates in the Deepwater offshore segment and seasonal trends in the Crew boats activity. Utilization rates improved compared with the previous quarter in Deepwater offshore and Shallow water offshore but pressure on daily rates remains strong, mainly due to the vessel overcapacity in these 2 segments.

 

Marine Services: Deepwater offshore vessels

 

 

Quarter

9 months

Q3 2017

Q3 2016

Var

2017/2016

Q2 2017

2017

2016

Var

2017/2016

Adjusted Revenues (in € millions)

59.9

81.4

-26.4%

68.3

197.0

264.2

-25.4%

Number of vessels (end of period)*

89

89

-

89

89

89

-

Average utilization rate

62.2%

66.4%

-4.2 pts

60.3%

61.1%

71.0%

-9.9 pts

Average daily rate (US$/day)

13,781

16,492

-16.4%

14,863

14,687

16,939

-13.3%

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

Adjusted revenues for the Deepwater offshore segment were mainly impacted by lower average daily rates and the end of contracts for several vessels in West Africa. The recovery of drilling activity was nevertheless confirmed, with stable average utilization rates over 3 quarters. 

 

 

Marine Services: Shallow water offshore vessels

 

 

Quarter

9 months

Q3 2017

Q3 2016

Var

2017/2016

Q2 2017

2017

2016

Var

2017/2016

Adjusted Revenues (in € millions)

37.8

60.9

-38.0%

39.1

114.0

229.1

-50.2%

Number of vessels (end of period)*

131

133

-2 vessels

132

131

133

-2 vessels

Average utilization rate

42.1%

53.1%

-11.0 pts

40.0%

39.2%

62.3%

-23.1 pts

Average daily rate (in US$/day)

8,371

10,365

-19.2%

8,749

8,856

11,061

-20.0%

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

 

 

In Shallow water offshore, utilization rates were slightly up, as they have been since the 1st quarter of 2017. Several vessels were reactivated during the quarter in order to serve medium and long-term contracts. However, as daily rates continued to be driven downward, adjusted revenues showed a 3.4% quarter on quarter reduction.

 

 

Marine Services: Crew boat vessels

 

 

 

Quarter

9 months

Q3 2017

Q3 2016

Var

2017/2016

Q2 2017

2017

2016

Var

2017/2016

Adjusted Revenues (in € millions)

51.4

60.8

-15.5%

55.0

165.2

187.8

-12.0%

Number of vessels (end of period)

269

269

-

269

269

269

-

Average utilization rate

55.1%

61.1%

-6.0 pts

56.4

57.6%

64.1%

-6.5 pts

Average daily rate (in US$/day)

4,453

4,473

-0.4%

4,393

4,427

4,477

-1.1%

 

Adjusted revenues for the Crew boats segment were down 6.5% compared with the 2nd quarter of 2017, impacted by a seasonal slowdown in activity, the renewal of several contracts at lower daily rates and movements of FSIV (Fast Support Intervention Vessels) between different regions to meet new contracts beginning at the end of this quarter.

Overall segment activity was stable with slightly lower utilization rates (-1.3%) compared with the 2nd quarter of 2017 and price levels up since the 1st quarter of 2017. Demand remains strong for large Crew boats, representing an economic alternative to helicopter transportation.

 

 

 

Subsea Services

 

 

Quarter

9 months

Q3 2017

Q3 2016

Var

2017/2016

Q2 2017

2017

2016

Var

2017/2016

Adjusted Revenues (in € millions)

52.1

50.0

+4.3%

67.8

176.5

160.8

+9.8%

Number of vessels (end of period)*

22

22

-

22

22

22

-

Average utilization rate

63.4%

57.0%

+6.4 pts

65.7%

62.2%

55,1%

+7.1 pts

Average daily rate (in US$/day)

34,304

37,182

-7.7%

37,976

36,649

40,001

-8.4%

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

Adjusted revenues for the Subsea Services activity were down 23.1% compared with the 2nd quarter of 2017, mainly impacted by a lower number of turnkey projects and the slowdown in contractors' activity. Utilization rates remained stable overall in a very competitive environment reflected in the level of daily rates. The IMR (Inspection, Maintenance & Repair) business remained stable.

 

BOURBON Subsea Services continues to pursue its diversification strategy with its partners in regions of operation, such as the Persian Gulf, Asia, West Africa and Central America.

 

Other

 

Quarter

9 months

Q3 2017

Q3 2016

Var

2017/2016

Q2 2017

2017

2016

Var

2017/2016

Adjusted Revenues (in € millions)

3.0

5.9

-49.1%

3.8

11.0

16.3

-32.6%

 

Activities included are those that do not fit into either Marine Services or Subsea Services. For the most part, they correspond to the results of various ship management and logistics activities and to the cement carrier Endeavor, which was sold in July 2017.

 

OUTLOOK

 

The improvement in the oil companies' financial positions has not yet been reflected in a generalized recovery of their investments and thus by an increase in the activity of our Offshore services market. Customers wish to continue to operate at optimum price levels in order to carry on sanctioning Offshore projects in competition with Onshore projects and shale oil in particular.

 

Recovery is expected to be slow and the Deepwater offshore and Shallow water offshore segments will continue to be affected by vessel overcapacity throughout 2018 in all geographical regions, although some signs of improvement will be seen at local level. Utilization rates should continue to resist in the Crew boats and Subsea segments.

 

Facing this "new normal", BOURBON must pursue the radical change of its business model and its efforts to streamline operations, reduce costs and preserve cash. To meet the competitiveness needs of our Offshore business and the new requirements of our customers, we have to respond to the down cycle that is metamorphosing the face of our industry and offer modern vessels, teams capable of providing service excellence, as well as new innovative and efficient ways of operating.

 

 

 

ADDITIONAL INFORMATION

 

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

 

 

FINANCIAL CALENDAR

 

2017 4th Quarter and Full Year Financial Information press release

February 8, 2018

2017 Annual Results press release and presentation

March 15, 2018

 


 

APPENDIX

 

 

Quarterly adjusted revenue breakdown

 

In millions of euros

 

2017

2016

 

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Marine Services

 

149.1

162.3

164.8

182.9

203.2

218.5

259.5

Deepwater offshore vessels

 

59.9

68.3

68.8

72.8

81.4

84.2

98.6

Shallow water offshore vessels

 

37.8

39.1

37.1

50.1

60.9

73.6

94.6

Crew boats

 

51.4

55.0

58.9

60.0

60.8

60.7

66.3

Subsea Services

52.1

67.8

56.6

56.4

50.0

60.9

50.0

Other

 

3.0

3.8

4.1

5.1

5.9

5.3

5.0

Total adjusted revenues

 

204.3

234.0

225.5

 

244.4

259.1

284.7

314.5

Adjustments*

 

(11.9)

(19.2)

(20.6)

 

(20.0)

(19.4)

(20.1)

(22.5)

TOTAL CONSOLIDATED*

 

192.4

214.7

204.9

224.4

239.7

264.6

292.0

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

 

 

Quarterly average utilization rates for the offshore fleet

 

In %

 

2017

2016

 

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Marine Services

 

52.9

52.7

54.3

 

57.1

59.9

64.5

70.3

Deepwater offshore vessels

62.2

60.3

61.0

60.5

66.4

69.7

77.2

Shallow water offshore vessels

42.1

40.0

35.6

44.6

53.1

62.5

71.3

Crew boats

55.1

56.4

61.4

62.2

61.1

63.8

67.5

Subsea Services

 

63.4

65.7

57.5

63.3

57.0

56.0

52.3

"Total fleet excluding Crew boats"

 

51.4

49.8

46.8

52.1

58.3

64.5

71.7

"Total fleet"

 

53.4

53.3

54.5

57.4

59.7

64.2

69.5

 

 

Quarterly average daily rates for the offshore fleet

 

In US$/day

 

2017

 

2016

 

Q3

Q2

Q1

 

Q4

Q3

Q2

Q1

Deepwater offshore vessels

 

13,781

14,863

15,084

 

15,526

16,492

16,537

17,630

Shallow water offshore vessels

 

8,371

8,749

9,534

 

9,958

10,365

10,712

11,967

Crew boats

 

4,453

4,393

4,270

 

4,359

4,473

4,405

4,538

Subsea Services

 

34,304

37,976

37,488

35,195

37,182

39,583

44,119

"Total fleet excluding Crew boats"

 

13,685

14,955

15,267

15,081

15,260

15,265

16,299

 


 

Quarterly number of vessels (end of period)

 

In number of vessels*

 

2017

2016

 

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Marine Services

 

489

490

491

491

491

490

492

Deepwater offshore vessels

 

89

89

89

89

89

89

89

Shallow water offshore vessels

131

132

133

133

133

133

133

Crew boats

269

269

269

269

269

268

270

Subsea Services

 

22

22

22

22

22

22

22

FLEET TOTAL

 

511

512

513

 

513

513

512

514

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

 

 

Nine month average utilization rates for the offshore fleet

 

In %

 

9 months

 

2017

2016

Marine Services

 

53.3

64.9

Deepwater offshore vessels

 

61.1

71.0

Shallow water offshore vessels

 

39.2

62.3

Crew boats

 

57.6

64.1

Subsea Services

 

62.2

55.1

"Total fleet excluding Crew boats"

 

49.3

64.8

"Total fleet"

 

53.7

64.4

 

 

Nine month average daily rates for the offshore fleet

 

In US$/day

 

9 months

 

2017

2016

Deepwater offshore vessels

 

14,687

16,939

Shallow water offshore vessels

 

8,856

11,061

Crew boats

 

4,427

4,477

Subsea Services

 

36,649

40,001

"Total fleet excluding Crew boats"

 

14,673

15,626

 


 

 

Breakdown of adjusted revenues by geographical region

 

In millions of euros

Third quarter

9 months

Q3 2017

Q3 2016

Change

2017

2016

Change

Africa

118.9

131.0

-9.2%

384.3

480.4

-20.0%

Europe & Mediterranean/Middle East

31.1

45.7

-32.0%

91.5

116.3

-21.3%

Americas

36.0

52.9

-32.0%

115.4

171.2

-32.6%

Asia

18.3

29.5

-38.0%

72.6

90.3

-19.6%

 

 

 

Other key indicators

 

 

Quarterly breakdown

 

 

 

2017

 

2016

 

Q3

Q2

Q1

 

Q4

Q3

Q2

Q1

Average €/US$ exchange rate for the quarter

(in €)

 

1.17

1.10

1.06

1.08

1.12

1.13

1.10

€/US$ exchange rate at closing

(in €)

 

1.18

1.14

1.07

1.05

1.12

1.11

1.14

Average price of Brent for the quarter

(in US$/bbl)

 

55

51

54

49

46

46

34

 

 

Nine month breakdown

 

 

 

9 months

 

2017

2016

Average nine month €/US$ exchange rate (in €)

 

1.11

1.12

€/US$ exchange rate at closing (in €)

 

1.18

1.12

Average nine month price of Brent (in US$/bbl)

 

52

42

 

 


 

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 9,300 skilled employees. Through its 37 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 two operating activities (Marine Services and Subsea Services) and also protects the French coastline for the French Navy.

 

In 2016, BOURBON'S revenue came to €1,102.6 million and the company operated a fleet of 514 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

 


 

 

 

 
 


 

 



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