November 9, 2017 - 1:02 AM EST
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BOURBON: Financial information 3rd quarter and 9 months 2017

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 
[email protected] [email protected]
   
Corporate Communication  
Christelle Loisel  
+33 491 136 732  
[email protected]  


 

 
 


Attachments:

http://www.globenewswire.com/NewsRoom/AttachmentNg/fc7ed5d4-84b8-4eb8-a414-c1b71bb42849


Source: GlobeNewswire (November 9, 2017 - 1:02 AM EST)

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