BOURBON (EPA:GBB) BOURBON - 2010 Annuals Results
Transparency directive : regulatory news
16/03/2011 07:00
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Press releaseParis, March 16, 2011
Annual Results 2010
Despite challenging conditions, the resilience shown by a 2010 EBITDA of 240.9
million euros, validates the pertinence of BOURBON's strategy
Net income, group share of 39.2 million euros
"The 2010 results obtained, despite an unusually sluggish market, illustrate the
merits of a strategy aimed at meeting client needs in terms of safety,
reliability and lower costs through continuous investments in innovative and
high-performance vessels" says Jacques de Chateauvieux, Chairman of the BOURBON
Board of Directors. "This year BOURBON showed its ability to resist in a market
downturn and will deliver its full potential with the implementation of BOURBON
2015 Leadership Strategy plan."
"The conditions for the success of the plan are now met," stresses Christian
Lefèvre, Chief Executive Officer of BOURBON. "Cash from the 500 million euros
disposal plan is already available. The vessels ordered are benefiting from
experience acquired in operating the previous series, and the crews can rely on
a structure and procedures that meet the needs of clients. The resumption of
investments announced by the oil companies and confirmed by the utilization
rates of the first two months of the year is creating an environment conducive
to a gradual improvement in performance and results."
In millions of euros H2 2010 H1 2010 Change H2 2009 2010 2009 Change
Proforma* Proforma* Proforma*
Revenues 443.6 406.4 +9.2% 404.8 849.9 812.8 +4.6%
Gross operating
income excluding
capital gains 118.2 121.9 -3.0% 146.4 240.1 297.5 -19.3%
Capital gains 0.9 0.0 0.2 0.9 1.2
Gross operating
income (EBITDA) 119.1 121.9 -2.3% 146.6 240.9 298.7 -19.3%
Operating income
(EBIT) 17.6 35.9 -51% 80.0 53.5 176.5 -69.7%
Net financial
income/(loss) (38.0) 5.5 (13.0) (32.4) (34.3)
Income tax (4.9) (10.1) -52.0% (3.3) (15.0) (8.7) +73.5%
Net income from
discontinued
operations 21.2 10.4 +103.5% 17.4 31.6 38.0
Minority interests (2.1) 0.7 8.0 (1.4) 16.2
Net income/loss,
group share (1.8) 41.0 -104.5% 73.1 39.2 155.4 -74.8%
*financial items restated in accordance with the new "BOURBON scope" (cf p5)
Revenues in 2010 came to 849.9 million euros, up 4.6% from the previous year.
During the year, both Marine Services and Subsea Services grew, while external
charters (now presented under "Other") practically disappeared.
From one half year to the next in 2010, revenues grew 9.2% thanks to two
activities: Marine Services (up 9.5%) and Subsea Services (up 20.4%), while the
decline in external charters is responsible for a 28% loss in "other"
revenues.
Compared with the second half of 2009, revenues in the second half of 2010 were
up 9.6% to 443.6 million euros. This increase in a sluggish market reflects the
growth of the fleet and the sharp decrease of charters.
Gross operating income (EBITDA) in 2010 stood at 240.9 million euros, down 19.3%
from the previous year, despite an overall increase in revenues driven by Subsea
Services, which only partly offsets the effect of market conditions on the
performance of Marine Services.
From one half year to the next in 2010, the dip in EBITDA was limited to 2.3%.
In the second half of 2010, owing to a sluggish market, and despite the increase
of the number of vessels in the fleet, EBITDA fell by 18.8% from the second half
of 2009, to 119.1 million euros.
Operating income fell by 69.7% in 2010 compared with the previous year to 53.5
million euros. Depreciation in 2010 increased by 51 million euros, related
mainly to the increase in the number of vessels in the fleet. Provisions
increased mainly due to 11 million euros non-recurring provisions in Nigeria and
Brazil.
Compared with the second half of 2009, the 78% drop in operating income at 17.6
million euros is also due to depreciation, which increased by 29.2 million in
the second half of 2010 and to higher provisions.
The Financial income/loss in 2010 is comparable to the previous year at -32.4
million euros. It reflects two contrasting changes:
- An increase in the cost of financial debt of 21.8 million euros due to the
increase in average debt and the reduction of the portion of capitalized
interests related to installments paid on vessels under construction;
- A favorable change of 18.9 million euros in unrealized earnings from
financial instruments.
In the second half of 2010, the financial loss amounted to -38 million euros
i.e. an additional loss of 25 million euros compared with the second half of
2009 owing to an increase in the cost of debt and the erosion in unrealized
foreign exchange gains.
The activities sold in 2010 yielded a profit of 31.6 million euros.
Net income, group share was positive at 39.2 million euros, down 74.8% from the
previous year.
* MARINE SERVICES
Revenues in 2010 amounted to 660.3 million euros, up 9.2% from 2009. The impact
of the strong growth of the fleet (58 new vessels) was attenuated by the
downturn in market conditions. The vessel utilization rate remained high at
79.5% compared with 83% in 2009.
In the second half of 2010, revenues rose by 9.5% compared with the first half
of 2010, owing mainly to the growth of the fleet (up 8%).
Compared with the second half of 2009, the average utilization rate in the
second half of 2010 remained steady at 81% compared with 89%.
Compared with the previous year, EBITDA in 2010 fell by 24.4% to 182.9 million
euros because of market conditions and the increase in costs due mainly to the
repositioning of more vessels at the end of their contract.
Compared with the first half of 2010, EBITDA in the second half of 2010 dipped
by 9%.
Results Marine Services
2010 2009 proforma* Change
Number of vessels (end of period) 390 343 +13.7%
Utilization rate 79.5% 83.0% -3.5 pts
In millions of euros 2010 2009 proforma* Change
Revenues 660.3 604.9 +9.2%
Gross operating income excluding capital
gains 182.1 240.4 -24.3%
Capital gains 0.9 1.7
Gross operating income (EBITDA) 182.9 242.1 -24.4%
% of revenues 27.7% 40.0% -
*financial items restated in accordance with the new BOURBON scope (cf p5)
Results by segment
2010
Deepwater Shallow Crewboats TOTAL
water
Number of vessels (end of period) 69 78 243 390
Utilization rate 90.3% 73.2% 78.2% 79.5%
2010
In millions of euros Deepwater Shallow Crewboats TOTAL
water
Revenues 308.7 151.7 199.9 660.3
Direct costs (166.5) (107.7) (132.3) (406.6)
General and administrative costs (33.5) (16.5) (21.7) (71.7)
Gross operating income (EBITDA)
excluding capital gains 108.6 27.5 45.9 182.1
% of revenues 35.2% 18.1% 23.0% 27.6%
* Deepwater offshore vessels
In the year 2010, revenues from Deepwater Offshore vessels came to 308.7 million
euros, accounting for 46.7% of the total earned by Marine Services.
In accordance with the strategy which took into account the risks of
overcapacity in this segment, only two new vessels were added to the fleet in
2010.
The utilization rate remained high at 90.3% compared with 93.1% in 2009, thanks
to the high rate of long-term contracting.
EBITDA excluding capital gains reached 108.6 million euros, or 59.6% of EBITDA
excluding capital gains of Marine Services, in line with the high degree of
capital intensity of the Deepwater segment.
* Shallow water offshore vessels
In the year 2010, revenues from shallow water offshore vessels amounted to 151.7
million euros and accounted for 23% of total Marine Services revenues. During
the year, BOURBON vigorously continued its replacement strategy by bringing into
the market 26 new Bourbon Liberty vessels, raising to 58 the number of Bourbon
Liberty vessels in the fleet at year-end. The time it took to introduce these
new vessels and the administrative problems encountered in Brazil (all of which
have been solved since then) had a negative effect on the utilization rate,
which, however, still reached 73% compared with 84% in 2009.
EBITDA excluding capital gains came to 27.5 million euros, accounting for 15.1%
of EBITDA excluding capital gains of Marine Services activity.
* Crewboats
In the year 2010, revenues from Crewboats totaled 199.9 million euros, or 30.3%
of revenues from Marine Services activity. During the year, 30 new crewboats
were commissioned, and 10 old vessels were either sold or destroyed. The
utilization rate came to 78.2% compared with 79.1% in 2009.
EBITDA excluding capital gains was 45.9 million euros, or 25.2% of EBITDA
excluding capital gains of Marine Services activity.
* SUBSEA SERVICES
2010 2009 proforma* Change
Number of vessels (end of period) 17 14 +21.4%
Utilization rate 88.5% 88.1% +0.4 pts
In millions of euros 2010 2009 proforma* Change
Revenues 149.6 127.3 +17.5%
Gross operating income excluding capital gains 52.8 48.8 +8.2%
Capital gains - (0.1)
Gross operating income (EBITDA) 52.8 48.7 +8.3%
% of revenues 35.3% 38.2% -
*financial items restated in accordance with the new BOURBON scope (cf p5)
2010 revenues from Subsea Services amounted to 149.6 million euros, up 17.5%
compared with the previous year. This reflects the growth of the fleet (arrival
of 3 new IMR vessels and 3 ROV). It also reflects the fact that a high
utilization rate was maintained (88.5% compared with 88.1% during the previous
year) and that performance was improved through the renewal of contracts with
higher rates and expanded services.
Compared with the first half of 2010, the average utilization rate of IMR
vessels in the second half of 2010 rose by 5.9 points. During the same period,
revenues rose by 20.4% because of the growth of the fleet and the renewal of
some contracts under favorable conditions.
Compared with the second half of 2009, the average utilization rate of the IMR
vessels rose by 1.6 points in the second half of 2010 to 91.3%.
2010 EBITDA rose 8.3% to 52.8 million euros owing to the growth of the fleet and
to improved performance. Compared to the first half of 2010, EBITDA rose 12.5%
in the second half of 2010.
* OTHER
In millions of euros 2010 2009 proforma* Change
Revenues 40.0 80.6 -50.4%
Gross operating income excluding capital gains 5.2 8.3 -37.1%
Capital gains - (0.4)
Gross operating income (EBITDA) 5.2 7.9 -33.6%
% of revenues 13.1% 9.8% -
*financial items restated in accordance with the new BOURBON scope (cf p5)
"Other" mainly includes the activity of the cement carrier Endeavor, offshore
vessels chartered externally and items not allocated to the other two
activities.
In the year 2010, with the arrival of a number of new vessels in the offshore
fleet in a sluggish market, the use of external charters declined considerably.
This resulted in a 50.4% decline in "Other" revenues to 40 million euros and in
a 33.6% reduction of EBITDA to 5.2 million euros.
* OUTLOOK
The market is still expecting oil prices to remain high, creating a favorable
environment for investments in the sector. The announcement by the oil companies
of an increase in their investments (up 11% in Exploration & Production) has
just confirmed this trend in 2011.
For offshore services vessels, BOURBON has seen increasing demand from clients
in terms of safety and efficiency of operations, reinforcing their preference
for more modern fleets over older vessels, especially in shallow water
offshore.
In this context, the demand for vessels is expected to grow, and old vessels
will be replaced more rapidly, gradually absorbing the overcapacity.
As a result, the average utilization rate for the BOURBON fleet is expected to
continue to improve steadily as already noted in January and February 2011,
prior to an increase in dayrates.
* DECISIONS BY THE BOARD
As the Board of Directors is confident in the medium and long-term outlook, it
will propose to the June 1, 2011 combined Annual and Special Shareholders'
meeting the payment of a dividend of 0.90 euro per share.
As in 2009, it will also propose to grant one bonus share for every ten shares
held.
* ADDITIONAL INFORMATION
The 2010 financial statements were closed by the Board of Directors on March 14,
2011.
The auditing procedures have been completed and the audit report relating to
certification is in the process of being issued.
BOURBON SCOPE
Following the disposals made during the year and in accordance with IFRS, the
financial items concerning the Bulk Division and the sugar activity in Vietnam
have been reclassified as "income from discontinued operations/operations held
for sale."
To reflect this refocus on offshore oil and gas marine services, the Group's
results is henceforth segmented and analyzed in "Marine Services", "Subsea
Services" and "Other", with the latter including offshore vessels chartered
externally and the cement carrier Endeavor.
"Marine Services" is now broken down into - "Deepwater offshore vessels,"
Shallow water offshore vessels" and "Crewboats."
Figures for the first three quarters of 2010 and for 2009 have been restated
accordingly.
* FINANCIAL CALENDAR
- 1st quarter 2011 financial information May 11, 2011
- Combined Annual and Special Shareholders' Meeting June 1, 2011
- 2nd quarter and 1st half 2011 financial information August 10, 2011
- Presentation of 1st half 2011 results August 31, 2011
APPENDIX I
Simplified balance sheet
In millions of euros 12.31.2010 12.31.2009 12.31.2010 12.31.2009
Shareholder's
equity 1,468 1,487
Net properties and
equipment 3,077 3,096 Financial debt 1,504 1,449
> 1 year
Other non-current
assets 80 78 Other long-term 96 64
liabilities
TOTAL TOTAL
NON-CURRENT 3,158 3,174 NON-CURRENT 1,600 1,513
ASSETS LIABILITIES
Other current assets 423 435 Financial debt 472 453
< 1 year
Cash and cash
equivalents 210 153 Other current 266 309
liabilities
TOTAL CURRENT ASSETS 633 588 TOTAL CURRENT 738 762
LIABILITIES
Current assets held for
sale 15 - Non-current 0 -
liabilities held
for sale
TOTAL ASSETS 3,805 3,762 TOTAL LIABILITIES 3,805 3,762
APPENDIX II
Consolidated Cash Flow Statement
In millions of euros 2010 2009
Consolidated net income 37.8 171.6
Cash flow 236.6 311.2
Net cash flow from operating activities (*) 247.6 356.7
Net cash flow consumed by investing activities (*) (131.5) (681.1)
Including acquisition of tangible and intangible assets(635.9) (734.0)
Including disposal of tangible and intangible assets 473.3 42.7
Net cash flow from financing activities (*) (107.8) 232.4
Including increase (decrease) in borrowings (2.5) 324.5
Including dividends paid to shareholders of the group (52.9) (47.9)
Including net financial interest paid (56.5) (32.7)
Effect of the change in exchange rates (0.5) (1.5)
Net cash increase (decrease) (*) 7.8 (93.5)
Net cash at beginning of period (68.9) 24.7
Net cash at end of period (61.1) (68.9)
Net cash increase (decrease) (*) 7.8 (93,5)
(*) including discontinued operations
About BOURBON
With 8,350 professionals and a fleet of 408 owned vessels and 88 units on order,
BOURBON is currently present in more than 35 countries.
BOURBON offers a broad range of deepwater and continental offshore oil and gas
marine services. Under the new "BOURBON 2015 Leadership Strategy" plan, the
company will invest US$ 2 billion to offer its most demanding oil and gas
clients a large fleet of 600 innovative and high performance vessels. It will
guarantee the highest standard of quality service worldwide, under completely
safe conditions.
BOURBON also protects the French coastline for the French Navy.
Classified by ICB (Industry Classification Benchmark) in the "Oil Services"
sector, BOURBON is listed for trading on Euronext Paris, Compartment A, and is
included in the Deferred Settlement Service SRD and in the SBF 120, CAC Mid 60
and Dow Jones Stoxx 600 indices.
CONTACTS
Publicis Consultants
Jérôme Goaer +33(0)1 44 82 46 24-jerome.goaer@consultants.publicis.fr
Véronique Duhoux +33(0)1 44 82 46 33-veronique.duhoux@consultants.publicis.fr
Vilizara Lazarova +33(0)1 44 82 46 34-vilizara.lazarova@consultants.publicis.fr
BOURBON
Investors - Analysts - Shareholders Relations
Patrick Mangaud +33(0)1 40 13 86 09-patrick.mangaud@bourbon-online.com
Communications Department
Christa Roqueblave +33(0)1 40 13 86 06-christa.roqueblave@bourbon-online.com
The financial ata related to the annual 2010 results includes this press release
as well as the presentation of the press conference available on the group's
website.
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