BOURBON: 2nd Quarter and 1st Half 2016 Revenues

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PARIS, Aug. 3, 2016 (GLOBE NEWSWIRE) – 

BOURBON 2nd Quarter and 1st Half 2016 Revenues

The impact of the oil market cycle reaching its bottom is felt in BOURBON 1st Half 2016 adjusted revenues of €599.2 million, a 21.0% decline year on year and 11.7% reduction compared to 2nd half 2015 (both at current rates)

BOURBON is the most resilient OSV company in the market and has been impacted, however less and later, by the deep reduction in the level of activity of the oil companies following the sharp and sudden reduction of the oil price. Therefore the performance during 2016 is and will reflect the full impact of the down cycle, as illustrated by the quarter on quarter reduction of BOURBON adjusted revenues.

  Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015
Adjusted Revenues (in € millions)
Sequential change
284.7
-9.5%
314.5
-5.9%
334.2
-2.9%
344.1
-8.3%
375.2
-2.2%
383.6

 

Average utilization rate (excl. Crew boats)
Deep
Shallow
Subsea

 

64.5%
69.7%
62.5%
56.0%
71.7%
77.2%
71.3%
52.3%
76.7%
82.6%
76.5%
54.0%
76.0%
79.8%
75.5%
64.3%
79.5%
84.0%
78.3%
70.2%
84.3%
86.0%
84.5%
75.9%
Average daily rate (excl. Crew boats US$/d) 15,265 16,299 16,809 17,858 18,640 19,301

The evaluation of performances segment by segment shows that:

  • The bottom of the market in the Subsea segment was reached in Q1 2016, and it is anticipated that the improvement in utilization rates in the second quarter will continue in the quarters to come
  • The bottom of the market has been in Q2 2016 for the Crew boat segment; reduced helicopter activity for cost savings purposes and the increase of activity in production of existing fields are expected to improve the use of crew boats going forward
  • In the segments Deep and Shallow water, BOURBON anticipates the bottom of the market in Q3 2016, due to the late cyclical nature of this business.

With average utilization rates that for several years remained around 8 to 12 points above most of its competitors, BOURBON strongly benefits from the preference of customers for its performances in safety, reliability and positive impacts on customers’ own costs. BOURBON also has a specific advantage in its access to markets through long established local partnerships and from the diversification of its revenues among the four different segments of the market.

“More than ever, BOURBON is focusing on what the teams control: safety, reliability, cost control and improved efficiency to the customers benefit”, says Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON Corporation . “While the world’s largest oil field services company thinks the crude oil market has bottomed, BOURBON is ready to benefit in the first place from the market recovery when it will materialize”.

BOURBON anticipates the low point of adjusted revenues in Q3 2016, with a possible improvement at the end of 2016.

BOURBON has continued its cash preservation strategy with proactive stacking of vessels whenever appropriate. At the end of June 2016, 67 supply vessels were stacked, representing 27% of the supply fleet. Looking forward to full year 2016 adjusted revenues, BOURBON now anticipates a full year adjusted revenue reduction in the order of magnitude experienced year on year during the first semester and a slight decrease in adjusted EBITDAR/revenues margin.

 

 

In € millions, unless otherwise noted

Quarter Half Year
Q2 2016 Q2 2015 Var 2016/
2015
Q1 2016 H1 2016 H1 2015 Var 2016/
2015
Operational indicators              
Number of vessels (FTE)* 511.2 501.2 +2.0% 511.4 511.3 500.6 +2.1%
Number of vessels (end of period)** 513 506 +7 vessels 515 513 506 +7 vessels
Average utilization rate (%) 64.2% 77.1% -12.9 pts 69.5% 66.8% 78.1% -11.3 pts
Average daily rate (US$/day) 9,627 11,558 -16.7% 10,324 9,961 11,885 -16.2%

(*) FTE: Full Time Equivalent.
(**) Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Adjusted Revenues (a)              
Marine Services 218.5 299.8 -27.1% 259.5 478.0 612.0 -21.9%
Deepwater offshore vessels 84.2 109.6 -23.2% 98.6 182.8 223.4 -18.2%
Shallow water offshore vessels 73.6 116.1 -36.6% 94.6 168.2 239.6 -29.8%
Crew boats 60.7 74.2 -18.2% 66.3 127.0 149.1 -14.8%
Subsea Services 60.9 70.9 -14.1% 50.0 110.8 138.0 -19.7%
Other 5.3 4.5 +19.1% 5.0 10.4 8.8 +17.5%
Total adjusted revenues
(change at constant rates)
284.7 375.2

 

-24.1%
-20.7%
314.5

 

599.2 758.8

 

-21.0%
-19.6%
IFRS 11 impact*** (20.1) (30.1) n/s (22.5) (42.6) (57.5) n/s
Group TOTAL 264.6 345.1 -23.3% 292.0 556.6 701.3 -20.6%

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

Average utilization rate (excl. Crew boats) 64.5% 79.5% -15.0 pts 71.7% 68.1% 81.9% -13.8 pts
Average daily rate (excl. Crew boats US$/d) 15,265 18,640 -18.1% 16,299 15,741 19,012 -17.2%

(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.

MARINE SERVICES

  Quarter Half Year
Q2 2016 Q2 2015  Var 2016/
2015
Q1 2016 H1 2016 H1 2015 Var 2016/
2015
Adjusted Revenues (in € millions) 218.5 299.8 -27.1% 259,5 478.0 612.0 -21.9%
Number of vessels (end of period)* 490 483 +7 vessels 492 490 483 +7 vessels
Average utilization rate 64.5% 77.4% -12.9 pts 70.3% 67.4% 78.3% -10.9 pts

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

Adjusted revenues decreased in all segments in the 1st half 2016 as market conditions continued to decline. This is reflected in the 10.9 point decline in the average utilization rate compared to the year ago period. The small increase in the fleet does not compensate for the reduction in average daily rates and average utilization rates.

Marine Services: Deepwater offshore vessels

  Quarter Half Year
Q2 2016 Q2 2015 Var 2016/
2015
Q1 2016 H1 2016 H1 2015 Var 2016/
2015
Adjusted Revenues (in € millions) 84.2 109.6 -23.2% 98.6 182.8 223.4 -18.2%
Number of vessels (end of period)* 89 82 +7 vessels 89 89 82 +7 vessels
Average utilization rate 69.7% 84.0% -14.3 pts 77.2% 73.4% 84.9% -11.5 pts
Average daily rate (US$/day) 16,537 20,286 -18.5% 17,630 17,114 21,097 -18.9%

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

Upon entry into the fleet, the Bourbon Arctic has earned praise from clients for safety, cost effectiveness and reliability and is currently on charter into the 4th quarter of this year. Overall, global market conditions continue to put downward pressure on the average daily rate and the average utilization rate. Almost half of BOURBON’s deepwater fleet is located in West Africa, where average utilization rates for the 1st half 2016 remained stable compared with the year ago period and sequentially. Up to 17 vessels were stacked in Q2.

Marine Services: Shallow water offshore vessels

  Quarter Half Year
Q2 2016 Q2 2015 Var 2016/
2015
Q1 2016 H1 2016 H1 2015 Var 2016/
2015
Adjusted Revenues (in € millions) 73.6 116.1 -36.6% 94.6 168.2 239.6 -29.8%
Number of vessels (end of period)* 133 138 -5 vessels 133 133 138 -5 vessels
Average utilization rate 62.5% 78.3% -15.8 pts 71.3% 66.9% 81.4% -14.5 pts
Average daily rate (in US$/day) 10,712 13,507 -20.7% 11,967 11,289 13,732 -17.8%

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

Adjusted revenues in the 1st half 2016 declined significantly due to market forces having a proportionally greater impact on the shallow water market compared with the deepwater market, with the most significant decline being seen in West Africa. BOURBON therefore chose to take further proactive cost reduction measures by stacking additional vessels. Up to 46 vessels were stacked in the 2nd quarter of this year.

Marine Services: Crew boat vessels

 

 

Quarter Half Year
Q2 2016 Q2 2015 Var 2016/
2015
Q1 2016 H1 2016 H1 2015 Var 2016/
2015
Adjusted Revenues (in € millions) 60.7 74.2 -18.2% 66.3 127.0 149.1 -14.8%
Number of vessels (end of period) 268 263 +5 vessels 270 268 263 +5 vessels
Average utilization rate 63.8% 75.0% -11.2 pts 67.5% 65.6% 74.7% -9.1 pts
Average daily rate (in US$/day) 4,405 4,732 -6.9% 4,538 4,478 4,837 -7.4%

The Crew boat segment remains the most resilient among the Marine Services segments due to it being a cost effective alternative to the use of helicopters. 1st half 2016 adjusted revenues declined versus the prior year reflecting the difficult conditions faced in the market. The larger impact of the market downturn was on the FSIVs with average utilization rates declining more for these vessels than for the smaller crew boats in the fleet.

Subsea Services

  Quarter Half Year
Q2 2016 Q2 2015 Var 2016/
2015
Q1 2016 H1 2016 H1 2015 Var 2016/
2015
Adjusted Revenues (in € millions) 60.9 70.9 -14.1% 50.0 110.8 138.0 -19.7%
Number of vessels (end of period)* 22 22 No change 22 22 22 No change
Average utilization rate 56.0% 70.2% -14.2 pts 52.3% 54.1% 73.1% -19.0 pts
Average daily rate (in US$/day) 39,583 48,847 -19.0% 44,119 41,501 49,718 -16.5%

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

Lower adjusted revenues compared with the prior year are due to the market conditions and their effect upon the average daily rate and average utilization rate. There were up to 8 Subsea vessels stacked during the 2nd quarter 2016, having a significant negative impact on the average utilization rate compared with the year ago period. There were fewer stacked vessels than in the prior quarter and this helps explain the slight increase in the average utilization rate and higher adjusted revenues compared with the prior quarter.

 

Other

  Quarter Half Year
Q2 2016 Q2 2015 Var 2016/
2015
Q1 2016 H1 2016 H1 2015 Var 2016/
2015
Adjusted Revenues (in € millions) 5.3 4.5 +19.1% 5.0 10.4 8.8 +17.5%

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.

OUTLOOK

The largest oil & gas companies’ CEO’s express the view that even if the harsh downturn is not yet over, there are some signs of improvement. The drastic reduction of the level of investments of oil & gas companies over the past couple years has resulted in persistently low prices and a large oversupply of vessels in the offshore services market. Rather than to focus on additional cost cutting campaigns, clients are now thinking of the future. While recovery will take slightly more time to impact the offshore service vessel industry due to its late cyclical nature, this provides some optimism in the industry.

ADDITIONAL INFORMATION

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

FINANCIAL CALENDAR

2016 1st Half Results press release September 8, 2016
2016 3rd Quarter financial information press release November 3, 2016

APPENDIX

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 owner 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

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%

Breakdown of BOURBON adjusted revenues by geographical region

    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   1.11 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

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 11,000 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
james.fraser@bourbon-online.com

Corporate Communications
Christelle Loisel
+33 491 136 732
christelle.loisel@bourbon-online.com

 

Media relations agency
Publicis Consultants

Vilizara Lazarova
+33 144 824 634
vilizara.lazarova@consultants.publicis.fr

 
 
 

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Source: http://globenewswire.com/news-release/2016/08/03/861130/10164395/en/BOURBON-2nd-Quarter-and-1st-Half-2016-Revenues.html?f=22&fvtc=2&fvtv=1

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