September 8, 2016 - 1:00 AM EDT
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BOURBON: 1st Half 2016 Results

Paris, September 8, 2016

BOURBON 1st Half 2016 Results
In an Offshore services market that reached a low point, BOURBON achieved a solid adjusted EBITDAR, even though it declined 21% compared with the 1st half 2015

  • Operationally, the half year period recorded an exceptional performance in terms of safety         (TRIR of 0.60) and technical availability of the fleet (97.6%)
  • Adjusted EBITDAR reached €228.8 million compared with €290.4 million in 1st half 2015, with a stability of the margin at 38.2% of adjusted revenues compared with 38.3% for the same period a year ago, even as the full time equivalent number of stacked vessels, excluding Crew boats, increased from 18.6 vessels in the 1st half 2015 to 53.6 vessels for the 1st half 2016
  • Adjusted direct costs declined by 22.4%; the cost reduction for vessels in operation and the reduction in general & administrative costs compensated for the increase in total costs for the stacked vessels
  • During the 1st half, the reduction in adjusted revenues, the stability of the depreciation & amortization of the entire fleet, the impact of various non-recurring provisions and the loss on exchange realized in Nigeria, Egypt and Mexico have reduced the adjusted operating profit to             -€24.8 million and the Net Income, Group share to -€104.3 million
  • While BOURBON took delivery of 4 vessels during the 1st half, including the Bourbon Arctic in February 2016, the free cash flow generated in the period remained slightly positive at €6.7 million

"BOURBON is reinforcing its resistance capacity in the bottom of the cycle thanks to the action plan "Stronger for longer" that encompasses operational excellence, cost optimization, cash preservation and an appropriate debt structure", says Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON Corporation.

"However, we are convinced that the model of tomorrow will not return to that of pre-crisis and we are already preparing new responses to changes seen in the clients' expectations."



 

In € millions, unless otherwise noted
H1 2016 H1 2015 var H1 2016/
 H1 2015
H2 2015
         
Operational indicators        
         
  • Number of vessels (FTE)*
511.3 500.6 +2.1% 505.4
  • Number of vessels (end of period)**
513 506 +7 vessels 511
  • Technical availability rate (%)
97.6% 96.4% +1.3 pts 96.5%
  • Average utilization rate (%)
66.8% 78.1% -11.3 pts 73.0%
  • Average daily rate $/d
9,961 11,885 -16.2% 10,920
         
       * FTE: full time equivalent.
       ** Vessels operated by BOURBON (including vessels owned or on bareboat charter).
         
Financial performance        
  • Adjusteda Revenues
599.2 758.8 -21.0% 678.3
(change at constant rate)     -19.6% -12.6%
  • Adjusteda Costs (excl. bareboat charters)
(370.3) (468.4) -20.9% (421.0)
  • Adjusteda EBITDAR (ex. cap. gains)
228.8 290.4 -21.2% 257.3
Adjusted EBITDAR / Revenues 38.2% 38.3% -0.1 pt 37.9%
  • Adjusteda EBITDA
134.4 205.0 -34.4% 166.3
  • Adjusteda EBIT
(24.8) 51.1 n/s 15.0
  • IFRS 11 impact ***
(3.6) (6.4) -43.7% (11.9)
  • EBIT
(28.3) 44.8 n/s 3.0
  • Net income 
(87.3) (3.7) n/s (39.7)
  • Net income (group share)
(104.3) (19.2) n/s (57.4)

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

         
Average utilization rate (excl. crew boats) 68.1% 81.9% -13.8 pts 76.4%
Average daily rate (excluding crew boats, US$/d) 15,741 19,012 -17.2% 17,237

(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). As of January 1, 2015, 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.


Half year 2016 market and operational highlights

  • The global deepwater PSV market continues to face overcapacity during the prolonged downturn in the oil & gas sector as offshore activity is still significantly affected by the reductions in investments in new and existing projects by oil & gas companies
  • BOURBON is focused on operational excellence in execution:
    • Safety remains a strength at BOURBON, with TRIR (Total Recordable Incident Rate per million hours worked) of 0.60
    • Strong Technical availability rate of 97.6% in the 1st half of 2016
    • Cost control remains a high priority in order to continuously improve the efficiency of the fleet

Half year 2016 results highlights

  • Continued cost control efforts which included both efficiency gains as well as proactive stacking activity resulted in a reduction in costs (direct costs and G&A) of approximately 21% compared with the same period a year ago
  • The high margin of adjusted EBITDAR as a percent of revenues was stable overall compared with the 1st half 2015

MARINE SERVICES

 

Operational Business Indicators
H1 2016 H1 2015 var H1 2016 / H2 2015
H1 2015
Number of vessels FTE * 488.3 479.3 +1.9% 482.9
Technical availability rate 97.6% 96.5% +1.1 pts 96.5%
Average utilization rate 67.4% 78.3% -10.9 pts 73.6%
* Vessels operated by BOURBON (including vessels owned or on bareboat charter).
Adjusted Financial Performance
In € millions
H1 2016 H1 2015 var H1 2016/ H2 2015
H1 2015
Revenues 478.0 612.0 -21.9% 554.7
costs (excluding bareboat charter costs) (308.2) (389.8) -20.9% (355.0)
EBITDAR (excluding capital gains) 169.8 222.3 -23.6% 199.7
EBITDAR (excluding capital gains) / Revenues 35.5% 36.3% -0.8 pts 36.0%
EBITDA 103.5 162.2 -36.2% 132.7
EBIT (22.6) 35.0 n/s 6.5

The good resilience of the Crew boat segment and cost reductions of almost 21% compared with the same period a year ago enabled Marine Services activity to maintain a high margin (adjusted EBITDAR/revenues) that was only slightly below the margin for the 1st half 2015. This decrease in costs was due to the proactive stacking of vessels as well as operational efficiency improvements. A slight increase in bareboat charter costs compared with a year ago combined with lower adjusted EBITDAR resulted in the significant decline in both adjusted EBITDA and adjusted EBIT.

Marine Services: Deepwater offshore vessels

Operational Business Indicators H1 2016 H1 2015 var H1 2016 /
H1 2015
H2 2015
Number of vessels FTE * 88.7 78.6 +12.8% 85.1
Technical availability rate 95.4% 96.1% -0.7 pts 95.4%
Average utilization rate 73.4% 84.9% -11.5 pts 81.4%
Average daily rate ($/day) 17,114 21,097 -18.9% 18,718
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
Adjusted Financial Performance
In € millions
H1 2016 H1 2015 var H1 2016 /
H1 2015
H2 2015
Revenues 182.8 223.4 -18.2% 208.1
costs (excluding bareboat charter costs) (112.9) (136.6) -17.4% (123.5)
EBITDAR (excluding capital gains) 69.9 86.7 -19.4% 84.6
EBITDAR / Revenues 38.2% 38.8% -0.6 pts 40.6%
EBITDA 36.1 58.6 -38.5% 51.3

Global market conditions continue to put downward pressure on the average daily rate and the average utilization rate. Costs were reduced by over 17% in the 1st half of 2016, in line with the reduction in adjusted revenues, while absorbing an increase in the fleet of nearly 13%, thus enabling the Deepwater offshore segment to keep the margin mostly stable versus a year ago. A reduced level of adjusted EBITDAR combined with a slight increase in the bareboat charter costs versus a year ago lead to an adjusted EBITDA reduction of 38.5%


Marine Services: Shallow water offshore vessels

 Operational Business Indicators H1 2016 H1 2015 var H1 2016 /
H1 2015
H2 2015
Number of vessels FTE* 133.0 138.1 -3.7% 135.1
Technical availability rate 98.7% 97.7% +1.0 pts 97.5%
Average utilization rate 66.9% 81.4% -14.5 pts 76.0%
Average daily rate (in US$/day) 11,289 13,732 -17.8% 12,507
* Vessels operated by BOURBON (including vessels owned or on bareboat charter).
Adjusted Financial Performance
In € millions
H1 2016 H1 2015 var H1 2016 /
H1 2015
H2 2015
Revenues 168.2 239.6 -29.8% 210.2
costs (excluding bareboat charter costs) (107.2) (152.0) -29.5% (133.7)
EBITDAR (excluding capital gains) 61.0 87.5 -30.3% 76.4
EBITDAR / Revenues 36.3% 36.5% -0.2 pts 36.4%
EBITDA 28.2 55.5 -49.2% 42.5

In the context of a very difficult market, BOURBON chose to take further proactive cost reduction measures by stacking additional vessels. Up to 46 vessels were stacked in the 1st half of this year. Therefore, the stable margin (adjusted EBITDAR/revenues) over the past 3 periods reflects the gains in cost control largely offsetting the reductions in adjusted revenues. Fleet availability has reached almost 99% in the 1st half of 2016 due to low maintenance downtime thanks to our modern and reliable fleet of Bourbon Liberty ships.

Marine Services: Crew boat vessels

 Operational Business Indicators H1 2016 H1 2015 var H1 2016 /
H1 2015
H2 2015
Number of vessels FTE 266.6 262.6 +1.5% 262.8
Technical availability rate 97.9% 96.1% +1.8 pts 96.3%
Average utilization rate 65.6% 74.7% -9.1 pts 69.9%
Average daily rate (in US$/day) 4,478 4,837 -7.4% 4,579
 
Adjusted Financial Performance
In € millions
H1 2016 H1 2015 var H1 2016 /
H1 2015
H2 2015
Revenues 127.0 149.1 -14.8% 136.4
costs (excluding bareboat charter costs) (88.1) (101.1) -12.8% (97.7)
EBITDAR (excluding capital gains) 38.8 48.0 -19.1% 38.7
EBITDAR / Revenues 30.6% 32.2% -1.6 pts 28.4%
EBITDA 39.2 48.0 -18.3% 38.8

The margin of adjusted EBITDAR/revenues declined compared with the 1st half of 2015. However, the margin increased 2.2 points compared with the 2nd half 2015 as a result of aggressive cost reductions and the improvement in activity in the crew boats.


Subsea Services

 Operational Business Indicators H1 2016 H1 2015 var H1 2016 /
H1 2015
H2 2015
Number of vessels FTE* 22.0 20.2 +8.9% 21.4
Technical availability rate 96.1% 93.8% +2.3 pts 96.7%
Average utilization rate 54.1% 73.1% -19.0 pts 59.0%
Average daily rate (in US$/day) 41,501 49,718 -16.5% 47,459
* Vessels operated by BOURBON (including vessels owned or on bareboat charter).
Adjusted Financial Performance
In € millions
H1 2016 H1 2015 var H1 2016 /
H1 2015
H2 2015
Revenues 110.8 138.0 -19.7% 114.3
costs (excluding bareboat charter costs) (54.5) (72.6) -24.9% (60.0)
EBITDAR (excluding capital gains) 56.3 65.3 -13.8% 54.3
EBITDAR / Revenues 50.8% 47.4% +3.5 pts 47.5%
EBITDA 28.1 40.0 -29.7% 30.4
EBIT 4.0 16.2 -75.5% 6.5

The margin of adjusted EBITDAR/revenues of Subsea Services activity increased 3.5 points in H1 2016 compared with a year ago due to cost control efforts that more than offset the decline in adjusted revenues during the period as well as the rebound in Subsea activity since the 1st quarter 2016. This is reflected in the 13.8% decline in adjusted EBITDAR while adjusted revenues declined almost 20%. There was a slight increase in bareboat charter costs and stable depreciation and amortization compared with the year ago period which, following a lower level of adjusted EBITDAR, lead to a significant percentage decline in adjusted EBITDA and adjusted EBIT.

Other

Adjusted Financial Performance
In € millions
H1 2016 H1 2015 var H1 2016 /
H1 2015
H2 2015
Revenues 10.4 8.8 +17.5% 9.3
costs (7.6) (6.0) +26.4% (6.1)
EBITDAR (excluding capital gains) 2.7 2.8 -1.7% 3.2
EBITDAR / Revenues 26.5% 31.7% -5.2 pts 34.9%
EBITDA 2.7 2.8 -1.7% 3.2
EBIT (6.1) (0.1) n/s 2.0

Activities included are those that do not fit into either Marine Services or Subsea Services. Making up the majority of the total are earnings from such items as miscellaneous ship management activities, logistics as well as from the cement carrier Endeavor.



Consolidated Capital Employed 6/30/2016 12/31/2015
In € millions
   
Net non-current Assets 2,769.2 2,725.9
Assets held for sale - 72.4
Working Capital 205.8 269.7
     
Total Capital Employed 2,975.0 3,068.0
     
Shareholders equity 1,396.4 1,564.3
Non-current liabilities (provisions and deferred taxes) 132.4 108.2
Net Debt 1,446.2 1,395.5
     
Total Capital Employed 2,975.0 3,068.0
     

Net non-current assets increased slightly due to the delivery of vessels that are not part of the vessel sale and bareboat charter agreements.

At the beginning of December 2014, BOURBON signed an agreement with Minsheng Financial leasing Co. for the sale and retention under bareboat charter of 8 vessels for an overall amount of approximately    $US 202 million. As of December 31, 2015, 5 vessels had been sold for approximately $US 111 million. The 3 remaining vessels to be sold had been accounted for in accordance with IFRS 5 on December 31, 2015. During the 1st half 2016, it was decided to not sell the remaining 3 vessels delivered at the end of 2015. According to IFRS 5, following the change in the plan to sell those non-current assets, BOURBON ceased to classify those assets as held for sale and reclassified them into tangible fixed assets.



Consolidated Sources and uses of Cash

In € millions
H1 2016 H1 2015
   
Cash generated by operations 111.8   266.5  
Vessels in service (A)   110.9   217.0
Vessel sales   0.9   49.4
       
Cash out for: (40.6)   (127.5)  
Interest   (23.5)   (25.2)
Taxes (B)   (11.7)   (15.7)
Dividends   (5.3)   (86.6)
         
Net Cash from activity 71.2   139.0  
         
Net debt changes

 
56.6   (45.3)  
Perpetual bond

 
-   19.8  
         
Use of cash for: (93.4)   (123.6)  
Investments   (117.9)   (147.7)
Working capital (C)   24.5   24.1
         
Other sources and uses of cash (34.4)   10.1  
         
         
Free cash flow 6.7   127.2  
Net Cash flow from operating activities (A+B+C)   123.7   225.5
Acquisition of property, plant and equipment and intangible assets   (117.9)   (147.7)
Sale of property, plant and equipment and intangible assets   0.9   49.4
         

The two primary sources of cash generation for BOURBON are from the vessels in service as a ship operator and the sale of vessels as a ship owner. From these sources of cash, the stakeholders such as banks, government entities and shareholders receive a portion in the form of interest, taxes and dividends. Another use of cash is for investment in assets for the business and required working capital increases. These various uses of cash make the speed of debt reduction less rapid, though still significant.

The free cash flow generated through the combined vessel operator and vessel owner elements of the business has made a significant improvement since the beginning of the vessel sale and bareboat charter program. This enabled movement from a negative free cash flow position in H1 2013 to a strong positive free cash flow of close to €130 million at the end of H1 2015 before the effects of the market downturn has reduced free cash flow, though as a result of BOURBON's resilience, it still remains positive in the 1st half 2016.

OUTLOOK

After the drastic reduction of the level of investments of oil & gas companies over the past couple years, oil producers are now thinking of the future, particularly to maintain their level of production in the medium term. However, the inevitable rebound in activity will take some time to reach Offshore marine services.

For the Deepwater and Shallow water segments, the market will continue to be affected by the overcapacity of vessels but the level of activity should remain stable at the current level.

Crew boat activity should benefit from a slight increase in activity in the producing fields and the decrease in utilization of helicopters for cost reduction reasons.

Subsea activity reached its low point in the 1st quarter 2016 and the improvement in the utilization rate in the 2nd quarter should continue for the following quarters.

BOURBON now anticipates a full year 2016 adjusted revenue reduction in the order of magnitude experienced year on year during the 1st semester and a slight decrease in adjusted EBITDAR/revenues margin. In the 2nd half, BOURBON will take delivery of only 1 crew boat and will generate positive free cash flow.

The rebalanced outlook of supply and demand of oil in 2017 should have a positive effect for BOURBON with its unique, modern and innovative fleet in its 4 segments.

ADDITIONAL INFORMATION

  • The accounts for the 1st half of 2016 were approved by the Board of Directors on the recommendation of the Audit Committee
  • The accounts for the 1st half of 2016 underwent a limited examination by the statutory auditors
  • BOURBON's results will continue to be influenced by the €/US$ exchange rate

FINANCIAL CALENDAR

3rd Quarter 2016 financial information press release November 3, 2016
 
 


APPENDIX I

Reconciliation of adjusted financial information with the consolidated financial statements

The adjustment items are the effects of the consolidation of joint ventures according to the equity method. At June 30, 2016 and for the comparative periods presented, adjustment elements are:

       
In millions of euros H1 2016 Adjusted IFRS 11 Impact* H1 2016
Consolidated
Revenues 599.2 (42.6) 556.6
Direct Costs & General and Administrative costs (370.3) 36.9 (333.4)
EBITDAR (excluding capital gains) 228.8 (5.7) 223.2
Bareboat charter costs (93.4) - (93.4)
EBITDA (excluding capital gains) 135.4 (5.7) 129.7
Capital gain (1.0) 1.4 0.4
EBITDA 134.4 (4.2) 130.1
Depreciation, Amortization & Provisions (159.1) 2.1 (157.0)
Share of results from companies under the equity method - (1.4) (1.4)
EBIT (24.8) (3.6) (28.3)
*Effect of consolidation of jointly controlled companies using the equity method.
 

 
In millions of euros H2 2015 Adjusted IFRS 11 Impact* H2 2015
Consolidated
Revenues 678.3 (50.0) 628.3
Direct Costs & General and Administrative costs (421.0) 35.9 (385.1)
EBITDAR (excluding capital gains) 257.3 (14.0) 243.2
Bareboat charter costs (91.4) - (91.4)
EBITDA (excluding capital gains) 165.9 (14.0) 151.8
Capital gain 0.4 (2.4) (1.9)
EBITDA 166.3 (16.4) 149.9
Depreciation, Amortization & Provisions (151.4) 2.9 (148.4)
Share of results from companies under the equity method - 1.6 1.6
EBIT 15.0 (11.9) 3.0
*Effect of consolidation of jointly controlled companies using the equity method.
       
In millions of euros H1 2015 Adjusted IFRS 11 Impact* H1 2015
Consolidated
Revenues 758.8 (57.5) 701.3
Direct Costs & General and Administrative costs (468.4) 44.3 (424.2)
EBITDAR (excluding capital gains) 290.4 (13.2) 277.2
Bareboat charter costs (87.8) - (87.8)
EBITDA (excluding capital gains) 202.6 (13.2) 189.4
Capital gain 2.4 - 2.4
EBITDA 205.0 (13.2) 191.8
Depreciation, Amortization & Provisions (153.8) 2.6 (151.2)
Share of results from companies under the equity method - 4.2 4.2
EBIT 51.1 (6.4) 44.8
*Effect of consolidation of jointly controlled companies using the equity method.

APPENDIX II

Simplified Consolidated Income Statement

 In € millions (except per share data) H1 2016 H1 2015 var H1 2016 /
H1 2015
H2 2015
         
Revenues 556.6 701.3 -20.6% 628.3
Direct costs (275.0) (357.3) -23.0% (320.9)
General & Administrative costs (58.3) (66.8) -12.7% (64.2)
         
EBITDAR excluding capital gains 223.2 277.2 -19.5% 243.2
         
Bareboat charter costs (93.4) (87.8) +6.5% (91.4)
         
EBITDA excluding capital gains 129.7 189.4 -31.5% 151.8
         
Capital gain 0.4 2.4 -83.5% (1.9)
Gross operating income (EBITDA) 130.1 191.8 -32.1% 149.9
         
         
Depreciation, Amortization & Provisions (157.0) (151.2) +3.9% (148.4)
Share of results from companies under the equity method (1.4) 4.2 n/s 1.6
Operating income (EBIT) (28.3) 44.8 n/s 3.0
         
         
Financial profit/loss (36.5) (34.2) +6.9% (26.6)
Income tax (22.5) (14.3) +56.8% (16.1)
Net Income (87.3) (3.7) n/s (39.7)
         
         
Minority interests (16.9) (15.5) +9.1% (17.7)
Net income (Group share) (104.3) (19.2) n/s (57.4)
         
         
Earnings per share (1.37) (0.25)   -
Weighted average number of shares outstanding 75,889,707 76,314,440   -
         


APPENDIX III

Simplified Consolidated Balance Sheet

In € millions 6/30/2016 12/31/2015   6/30/2016 12/31/2015
           
      Shareholders' equity 1,396.4 1,564.3
           
Net property, plant and equipment 2,546.0 2,503.0 Financial debt > 1 year 1,105.2 1,127.5
Other non-current assets 270.7 276.7 Other non-current liabilities 166.0 158.8
           
TOTAL  NON-CURRENT ASSETS 2,816.7 2,779.7 TOTAL NON-CURRENT LIABILITIES 1,271.3 1,286.3
           
Cash on hand and in banks 314.4 263.3 Financial debt < 1 year 655.4 531.3
Other currents assets 588.3 575.6 Other current liabilities 396.4 309.2
           
TOTAL CURRENT ASSETS 902.7 839.0 TOTAL CURRENT LIABILITIES 1,051.8 840.5
           
Non-current assets held for sale - 72.4 Liabilities directly associated with non-current assets classified as held for sale - -
           
      TOTAL LIABILITIES 2,323.1 2,126.8
TOTAL ASSETS 3,719.4 3,691.1 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 3,719.4 3,691.1


APPENDIX IV

Simplified Consolidated Cash Flow Statement

In € millions H1 2016 H1 2015
Cash flow from operating activities
 
consolidated net income (loss) (87.3) (3.7)
Other adjustments to cash flow from operating activities 211.0 229.2
   
Net cash flow from operating activities (A) 123.7 225.5
   
   
Cash flow from investing activities    
   
acquisition of property, plant and equipment and intangible assets (117.9) (147.7)
sale of property, plant and equipment and intangible assets 0.9 49.4
other cash flow from investing activities (30.3) 4.2
   
Net Cash flow used in investing activities (B) (147.3) (94.1)
   
   
Cash flow from financing activities    
   
net increase (decrease) in borrowings 16.4 (29.7)
dividends paid to shareholders of the group - (71.6)
cost of net debt (23.5) (25.2)
other cash flow from financing activities (9.4) 10.7
   
Net Cash flow used in financing activities (C) (16.6) (115.8)
   
   
Impact from the change in exchange rates (D) (1.0) 5.6
Change in net cash (A) + (B) + (C) + (D) (41.2) 21.2
     
     
Net cash at beginning of period 63.8 170.7
Change in net cash (41.2) 21.2
Net cash at end of period 22.6 191.9
   
     
Free cash flow calculation    
     
Net Cash flow from operating activities 123.7 225.5
acquisition of property, plant and equipment and intangible assets (117.9) (147.7)
sale of property, plant and equipment and intangible assets 0.9 49.4
     
Free cash flow 6.7 127.2
     

APPENDIX V

Quarterly adjusted revenue breakdown

In € millions   2016   2015
  Q2 Q1   Q4 Q3 Q2 Q1
Marine Services   218.5 259.5 275.7 279.0 299.8 312.2
Deepwater offshore vessels   84.2 98.6 106.1 101.9 109.6 113.8
Shallow water offshore vessels   73.6 94.6 103.0 107.2 116.1 123.5
Crew boats   60.7 66.3 66.6 69.9 74.2 74.9
Subsea Services 60.9 50.0 53.3 61.0 70.9 67.1
Other   5.3 5.0 5.2 4.1 4.5 4.3
Total adjusted revenues   284.7 314.5   334.2 344.1 375.2 383.6
IFRS 11 impact *   (20.1) (22.5)   (26.1) (23.8) (30.1) (27.4)
TOTAL CONSOLIDATED   264.6 292.0 308.1 320.2 345.1 356.3

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

Quarterly average utilization rates for the BOURBON offshore fleet

In %   2016   2015
  Q2 Q1   Q4 Q3 Q2 Q1
Marine Services   64.5 70.3   73.0 74.1 77.4 79.2
Deepwater offshore vessels 69.7 77.2 82.6 79.8 84.0 86.0
Shallow water offshore vessels 62.5 71.3 76.5 75.5 78.3 84.5
Crew boats 63.8 67.5 68.0 71.5 75.0 74.4
Subsea Services   56.0 52.3 54.0 64.3 70.2 75.9
"Total fleet excluding Crewboats"   64.5 71.7 76.7 76.0 79.5 84.3
"Total fleet" average utilization rate   64.2 69.5 72.1 73.7 77.1 79.1

Quarterly average daily rates for the BOURBON offshore fleet

In US$/day   2016   2015
  Q2 Q1   Q4 Q3 Q2 Q1
Deepwater offshore vessels   16,537 17,630   18,360 19,518 20,286 21,942
Shallow water offshore vessels   10,712 11,967   12,205 12,880 13,507 13,882
Crew boats   4,405 4,538   4,530 4,632 4,732 4,934
Subsea Services   39,583 44,119 47,232 47,657 48,847 50,118
"Total fleet excluding Crewboats" average daily
rate
  15,265 16,299 16,809 17,858 18,640 19,301


Quarterly number of vessels (end of period)

In number of vessels*   2016   2015
  Q2 Q1   Q4 Q3 Q2 Q1
Marine Services   490 492 488 484 483 479
Deepwater offshore vessels   89 89 88 86 82 79
Shallow water offshore vessels 133 133 133 134 138 138
Crew boats 268 270 267 264 263 262
Subsea Services   22 22 22 22 22 21
 FLEET  TOTAL   512 514   510 506 505 500

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

Quarterly deliveries of vessels

In number of vessels   2016   2015
  Q2 Q1   Q4 Q3 Q2 Q1
Marine Services   0 4 5 6 4 0
Deepwater offshore vessels   0 1 2 4 3 0
Shallow water offshore vessels 0 0 0 0 0 0
Crew boats 0 3 3 2 1 0
Subsea Services   0 0 0 0 1 0
 FLEET  TOTAL   0 4   5 6 5 0

Half-year adjusted revenue breakdown

In € millions   2016
H1
  2015
    H2  H1
Marine Services   478.0   554.7 612.0
Deepwater offshore vessels   182.8 208.1 223.4
Shallow water offshore vessels   168.2 210.2 239.6
Crew boats   127.0 136.4 149.1
Subsea Services 110.8 114.3 138.0
Other   10.4   9.3 8.8
Total adjusted revenues   599.2   678.3 758.8
IFRS 11 impact *   (42.6)   (50.0) (57.5)
TOTAL CONSOLIDATED   556.6   628.3 701.3

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


Half-year average utilization rates for the BOURBON offshore fleet

In %   2016
H1
  2015
    H2  H1
Marine Services   67.4   73.6 78.3
Deepwater offshore vessels   73.4 81.4 84.9
Shallow water offshore vessels   66.9 76.0 81.4
Crew boats   65.6 69.9 74.7
Subsea Services   54.1   59.0 73.1
"Total fleet excluding Crewboats"   68.1   76.4 81.9
"Total fleet" average utilization rate   66.8   73.0 78.1

Half-year average daily rates for the BOURBON offshore fleet

In US$/day   2016
H1
  2015
    H2  H1
Deepwater offshore vessels   17,114   18,718 21,097
Shallow water offshore vessels   11,289   12,507 13,732
Crew boats   4,478   4,579 4,837
Subsea Services   41,501   47,459 49,718
"Total fleet excluding Crewboats" average daily rate   15,741   17,237 19,012

Half-year deliveries of vessels

In number of vessels   2016
H1
  2015
    H2 H1
Marine Services   4   11 4
Deepwater Offshore vessels   1   6 3
Shallow water Offshore 0 0 0
Crew boats 3 5 1
Subsea Services   0   0 1
FLEET TOTAL   4   11 5

Contractualization rates for the BOURBON offshore fleet (end of period)

  6/30/2016   12/31/2015 6/30/2015
Deepwater offshore vessels   46.1%   52.3% 76.5%
Shallow water offshore vessels   42.1%   45.9% 65.2%
Crew boats   41.8%   51.7% 62.6%
Subsea Services   36.5%   45.5% 47.6%


Breakdown of BOURBON adjusted revenues by geographical region

In € millions Second quarter First half
Q2 2016 Q2 2015 Change H1 2016 H1 2015 Change
Africa 162.9 212.5 -23.3% 349.5 432.3 -19.2%
Europe & Mediterranean/Middle East 36.9 57.2 -35.4% 70.6 116.3 -39.3%
Americas 51.9 68.9 -24.7% 118.3 133.1 -11.2%
Asia 32.9 36.6 -10.0% 60.8 77.1 -21.2%

    2016   2015
In € millions   Q2 Q1   Q4 Q3 Q2 Q1
Africa   162.9 186.5   193.3 188.7 212.5 219.8
Europe & Mediterranean/Middle East   36.9 33.7   45.5 53.2 57.2 59.1
Americas   51.9 66.4   62.6 68.1 68.9 64.2
Asia   32.9 27.8   32.9 34.1 36.6 40.5

Other key indicators

Quarterly breakdown

  2016   2015
    Q2 Q1   Q4 Q3 Q2 Q1
Average €/US$ exchange rate for the quarter (in €)   1.13 1.10   1.10 1.11 1.11 1.13
€/US$ exchange rate at closing (in €)   1.11 1.14   1.09 1.12 1.12 1.08
Average price of Brent for the quarter (in US$/bbl)   46 34   44 50 62 54

Half-yearly breakdown

  2016
H1
  2015
      H2  H1
Average €/US$ exchange rate for the half year  (in €)   1.12   1.10 1.12
€/US$ exchange rate at closing (in €)   1.11   1.11 1.12
Average price of Brent for the half year (in US$/bbl)   40   47 58


Financial Glossary

Adjusted data: internal reporting (and thus adjusted financial information) records the performance of operational joint ventures in which the Group has joint control by the full consolidation method. 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).

EBITDA: operating margin before depreciation, amortization and impairment.

EBITDAR: EBITDA excluding costs of bareboat leases.

EBIT: EBITDA after increases and reversals of amortization, depreciation and provisions and share in income/loss of associates, but excluding capital gains on equity interests sold.

Capital committed (or employed): including (i) shareholders' equity, (ii) provisions (including net deferred tax), (iii) net debt; they are also defined as the sum (i) of net non-current assets (including advances on fixed assets), (ii) working capital requirement, and (iii) net assets held for sale.

Average capital employed excl. advances: is understood as the average of the capital committed at the beginning of the period and end of the period, excluding advances on fixed assets.

Free cash-flows: net cash flows for operational business after including incoming payments and disbursements related to acquisitions and sales of property, plant and equipment and intangible assets.

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 more than 10,000 skilled employees. Through its 34 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 2015, BOURBON'S revenue came to €1,329.6 million and as of June 30, 2016, the company operated a fleet of 513 vessels.

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

Contacts


 

BOURBON

Investor Relations, analysts, shareholders

James Fraser, CFA
+33 491 133 545
[email protected]

Corporate Communications

Christelle Loisel
+33 491 136 732
[email protected]

Media relations agency
Publicis Consultants

Vilizara Lazarova
+33 1 44 824 634
[email protected]





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


Source: Thomson Reuters ONE (September 8, 2016 - 1:00 AM EDT)

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