BOURBON (EPA:GBB) BOURBON - Press Release : 1st Quarter 2014 revenues
Transparency directive : regulatory news
30/04/2014 07:00
Click here to download pdf version
PRESS RELEASEParis, April 30, 2014
BOURBON 2014 1st quarter revenues were EUR320.0 million an increase of 7.9% at
constant exchange rates (2.9% at current rates)
BOURBON confirms its objective of 8-10% growth in revenues for 2014 with a
slight increase in the EBITDAR/revenue margin
* Quarterly revenues rose 7.9% (at constant rates) partly due to a 7.1%
increase in the size of the fleet. 1st quarter activities were impacted
sequentially by seasonal effects in the North Sea and in South East Asia.
* The fleet utilization rate excluding Crewboats was over 90%, helped by
stronger activity in the shallow market in West Africa.
* Average daily rates stable overall, with a strong increase in Subsea Services
(+12.4%) and smaller increases in the Deepwater and Crewboat segments, partly
due to vessel mix and geographic effects.
* Foreign exchange rate movements continued to have an impact on revenues,
partly offsetting the addition of new vessels in some segments and
improvements in average daily rates and utilization rates in others.
Consolidated revenues for the 1st quarter of 2014 were established for the
first time according to the new accounting standards IFRS 10, IFRS 11 and
IFRS 12 relating to consolidation which became mandatory as of January 1, 2014.
Specifically, joint ventures on which BOURBON has joint control are now
consolidated using the equity method which replaces the proportionate
consolidation method. Comparative figures are restated accordingly.
The 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 principles of internal reporting do not reflect the
application of the new IFRS 10, IFRS 11 and IFRS 12. Consequently, joint
ventures are still proportionately consolidated, as in previous years.
Quarter
In millions Var. Q1 Var. Q1
of euros, Q1 2014 Q1 2013 2014/2013 2014/2013 Q4 2013
except as noted Current rates Constant rates
Marine Services 270.3 258.5 +4.6% 270.3
Deepwater
offshore vessels 93.6 93.0 +0.7% 95.7
Shallow water
offshore vessels 105.1 92.8 +13.3% 100.0
Crewboats 71.6 72.8 -1.6% 74.7
Subsea Services 52.0 51.6 +0.8% 55.4
Other 4.7 4.9 -4.3% 5.8
Total revenues
by Activity/
Segment 327.1 315.1 +3.8% +8.8% 331.6
Adjustments ** (7.0) (4.2) (6.0)
GROUP TOTAL 320.0 310.9 +2.9% +7.9% 325.6
Number of vessels
(end of period) * 498 465 +33 vessels 485
Average
utilization rate
excl. Crewboats 90.6% 88.7% +1.9 pts 90.1%
Average daily
rate excl.
Crewboats
(in US$/d) 19,497 19,427 +0.4% 19,329
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
** effect of consolidation of joint ventures using the equity method
"Sequentially, the first quarter saw a contrast in results between different
segments, with satisfactory performance in shallow water and weaker performance
in Deepwater and Crewboats. In Subsea, activity was supported by a utilization
rate of more than 94%", says Christian Lefèvre, Chief Executive Officer of
BOURBON. "Sequential revenues were impacted by seasonal effects while year on
year results were impacted by foreign exchange rate movements. The trend in
average daily rates is still positive and we anticipate an increase in activity
for the rest of 2014."
MARINE SERVICES
Quarter
Q1 2014 Q1 2013 Var. Q1 2014 / Q4 2013
Q1 2013
Revenues (in millions of euros) 270.3 258.5 +4.6% 270.3
Number of vessels (end of period)* 479 445 +34 vessels 466
Average utilization rate 82.4% 83.9% -1.5 pts 83.3%
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
The operational performance in the Deepwater and Shallow water segments in the
1st quarter were partially offset by the negative effect of foreign exchange
rate movements and a weaker utilization rate in the Crewboats segment. Revenues
were up 4.6% in the 1st quarter 2014 compared with the same period last year,
due in part to a large number of deliveries during the past year. Seasonal
effects in the North Sea and South East Asia impacted results in the 1st
quarter compared with the 4th quarter of 2013
Marine Services indicators by segment
Deepwater offshore vessels
Quarter
Q1 2014 Q1 2013 Var. Q1 2014 / Q4 2013
Q1 2013
Revenues (in millions of euros) 93.6 93.0 +0.7% 95.7
Number of vessels (end of period)* 73 73 No change 72
Average utilization rate 88.6% 86.6% +2 pts 90.1%
Average daily rate (in US$/day) 22,839 21,392 +6.8% 22,241
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
Market conditions overall in the first quarter contributed to higher
utilization rates and higher average daily rates compared with the same period
last year. Several new contracts and extensions of existing contracts were
secured at higher rates as well as the addition of some larger PSV into the
segment. The sequential decline in utilization rates compared with the 4th
quarter of 2013 was partly due to seasonal effects in the North Sea and to a
lesser degree due to a higher number of classification drydocks, which were at
a similar level compared with the same period last year. The increases in both
average daily rates and utilization rates have been partly offset by the impact
of foreign exchange rate movements.
Shallow water offshore vessels
Quarter
Q1 2014 Q1 2013 Var. Q1 2014 / Q4 2013
Q1 2013
Revenues (in millions of euros) 105.1 92.8 +13.3% 100.0
Number of vessels (end of period)* 130 105 +25 vessels 122
Average utilization rate 91.2% 89.8% +1.4 pts 90.2%
Average daily rate (in US$/day) 14,199 14,315 -0.8% 14,013
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
The trend for modern and efficient vessel demand is still present in the
Shallow water market. The revenue growth in the first quarter of 2014 compared
with the same period last year was largely driven by vessel deliveries and an
increase in the utilization rate. Revenues also benefited from reduced
classification drydocks in the quarter both sequentially and year on year.
Average daily rates declined slightly as newbuild vessels were almost
exclusively allocated to the Asia and Mediterranean/Middle East/India regions
where daily rates are generally lower than those of other regions such as West
Africa.
Crewboats
Quarter
Q1 2014 Q1 2013 Var. Q1 2014 / Q4 2013
Q1 2013
Revenues (in millions of euros) 71.6 72.8 -1.6% 74.7
Number of vessels (end of period) 276 267 +9 vessels 272
Average utilization rate 76.6% 80.8% -4.2 pts 78.4%
Average daily rate (in US$/day) 5,323 5,034 +5.7% 5,309
The reduced utilization rates both year on year and sequentially were partly
due to slower growth conditions in a competitive market in West Africa. Average
daily rates improved year on year due to the addition of FSIV vessels which
earn higher daily rates than other smaller crewboats.
SUBSEA SERVICES
Quarter
Q1 2014 Q1 2013 Var. Q1 2014 / Q4 2013
Q1 2013
Revenues (in millions of euros) 52.0 51.6 +0.8% 55.4
Number of vessels (end of period) * 18 19 -1 vessel 18
Average utilization rate 94.4% 90.6% +3.8 pts 89.2%
Average daily rate (in US$/day) 45,407 40,405 +12.4% 43,120
* Vessels operated by BOURBON (including vessels owned or on bareboat charter)
IMR activity in West Africa has continued to show demand growth, particularly
among contractors. During the first quarter, 2 new vessels (the 4th and 5th
vessels in the Bourbon Evolution series) entered the fleet yet had no impact on
revenues due to the timing of their availability. In addition, Subsea services
continued to align its fleet positioning strategy with the transfer of 2
smaller Subsea Services vessels to Marine Services, which had a negative impact
on revenues and a positive impact on average daily rates due to the mix effect.
OTHER
Quarter
Q1 2014 Q1 2013 Var. Q1 2014 / Q4 2013
Q1 2013
Revenues (in millions of euros) 4.7 4.9 -4.3% 5.8
Using chartered vessels has two advantages for BOURBON: it makes it possible to
meet client demands and generate contracts while new vessels are being built
and added to the fleet. Using chartered vessels also enables BOURBON to offer
vessels that are not part of its regular line of services when needed for
global calls for tenders. Volatility of "Other" revenues is largely due to the
variation in the number of chartered vessels during the period.
OUTLOOK
The demand for offshore vessels continues to grow, helped by a relatively
stable oil price during the past several years.
Oil & gas companies have launched capital discipline campaigns impacting mostly
onshore projects while in the offshore market, project focus is shifting
towards high return projects and enhanced oil recovery from existing fields.
Even though their have been fewer awards to contractors from oil & gas
companies, their backlog is still strong and we do not foresee an impact
in 2014 on offshore Marine and Subsea Services Activities.
Deepwater offshore vessel demand growth is being driven by high return
projects. The high number of large PSVs coming out of the shipyards could
negatively affect the spot market. This should have only a small impact on
BOURBON, taking into account the high contractualization rate of its PSVs.
The demand in the shallow water offshore market remains driven by the renewal
of the fleet with modern, safe and efficient vessels, strengthened further by
projects using enhanced oil recovery on existing fields and by new jack ups
entering into service.
The Bourbon Evolution 800 series is progressively finding its place and is
becoming a reference for IMR duties for deep offshore fields, reducing oil &
gas field operating costs through high technical availability and low fuel
consumption. The first 4 vessels in this series are currently under contract.
The subsea market remains supported by the growth of subsea wellheads to be
delivered.
MAJOR OPERATIONS AND HIGHLIGHTS
In line with the "Transforming for beyond" "Asset Smart" action plan, a total
of 21 vessels were transferred to ICBCL during 2013, as part of the sale and
bareboat charter agreement for up to 51 vessels signed with ICBCL on April 9,
2013. Thus far in 2014, 15 additional vessels have been transferred
(4 Deepwater vessels, 10 Shallow water vessels, 1 Subsea Services vessel) for
US$464 million. This brings the total vessels transferred under the deal with
ICBCL to 36 vessels for a total amount of US$986 million.
In the agreement signed in November 2013 with Standard Chartered Bank ("SCB")
for the sale and bareboat charter of 6 new build vessels, the ownership of the
first 3 vessels were transferred in 2013 for US$65 million and the remaining
3 vessels will be delivered to SCB during the second half of 2014.
The Company notes that on March 16, 2014, JACCAR HOLDINGS announced its
intention to propose a bid for BOURBON shares at a price of 24 euros (with
dividend rights attached) per share. The main elements of this proposed offer
can be found in the press release issued by BOURBON on March 17, 2014. On March
17, 2014, the Autorité des marchés financiers (AMF) published a decision
indicating that the announcement of the offer marks the start of the pre-offer
period during which the provisions relating to tradings (Articles 231-38 to
231-43 of the General Regulation of the AMF) and the reports of transactions
(Articles 231-44 to 231-52 the General Regulations of the AMF) are applicable
to shares in BOURBON. The draft offer remains subject to review by the AMF.
ADDITIONAL INFORMATION
* While there was some hedging activity in the first half of 2013, since the
beginning of the 3rd quarter of this year, BOURBON no longer has any hedging
in place. At constant exchange rates, 1st quarter 2014 revenues rose 7.9%
compared with the same period last year
* BOURBON's results will continue to be affected by the EUR/US$ exchange rate
FINANCIAL CALENDAR
* Shareholders' Meeting May 20, 2014
* 2014 1st Half Results press release and presentation September 3, 2014
* 2014 3rd Quarter Revenues press release November 6, 2014
APPENDIX
Quarterly revenue breakdown
In millions of euros 2014 2013
Q1 Q4 Q3 Q2 Q1
Marine Services 270.3 270.3 267.0 268.7 258.5
Deepwater offshore vessels 93.6 95.7 100.6 102.3 93.0
Shallow water offshore vessels 105.1 100.0 93.0 90.1 92.8
Crewboats 71.6 74.7 73.4 76.3 72.8
Subsea Services 52.0 55.4 58.9 57.3 51.6
Other 4.7 5.8 6.5 6.7 4.9
Total revenues by Activity/Segment 327.1 331.6 332.4 332.8 315.1
Adjustments * (7.0) (6.0) (7.8) (4.3) (4.2)
GROUP TOTAL 320.0 325.6 324.6 328.5 310.9
* effect of consolidation of joint ventures using the equity method
Quarterly average utilization rates for the BOURBON offshore fleet
In % 2014 2013
Q1 Q4 Q3 Q2 Q1
Marine Services 82.4 83.3 82.4 82.4 83.9
Deepwater offshore vessels 88.6 90.1 88.8 90.0 86.6
Shallow water offshore vessels 91.2 90.2 90.2 89.1 89.8
Crewboats 76.6 78.4 77.5 77.7 80.8
Subsea Services 94.4 89.2 93.6 88.0 90.6
"Total fleet excluding Crewboats" 90.6 90.1 90.0 89.3 88.7
"Total fleet" average utilization rate 82.8 83.5 82.9 82.6 84.2
Quarterly average daily rates for the BOURBON offshore fleet
In US$/day 2014 2013
Q1 Q4 Q3 Q2 Q1
Deepwater offshore vessels 22,839 22,241 22,683 22,092 21,392
Shallow water offshore vessels 14,199 14,013 13,728 13,850 14,315
Crewboats 5,323 5,309 5,204 5,122 5,034
Subsea Services 45,407 43,120 41,331 40,644 40,405
"Total fleet excluding Crewboats"
average daily rate 19,497 19,329 19,573 19,458 19,427
Quarterly deliveries of vessels
In number of vessels 2014 2013
Q1 Q4 Q3 Q2 Q1
Marine Services 12 10 9 9 9
Deepwater offshore vessels 2 1 0 1 1
Shallow water offshore vessels 6 5 8 4 3
Crewboats 4 4 1 4 5
Subsea Services 2 0 0 0 1
FLEET TOTAL 14 10 9 9 10
Breakdown of BOURBON revenues by geographical region
In millions of euros 2014 2013
Q1 Q4 Q3 Q2 Q1
Africa 191.1 186.1 186.8 190.5 187.0
Europe & Mediterranean/Middle East 52.5 56.7 63.3 57.7 50.2
Americas 43.9 46.7 44.6 49.9 46.3
Asia 39.6 42.0 37.7 34.6 31.6
Other key indicators
Quarterly breakdown
2014 2013
Q1 Q4 Q3 Q2 Q1
Average EUR/US$ exchange rate
for the quarter (in EUR) 1.37 1.36 1.32 1.31 1.32
EUR/US$ exchange rate at closing (in EUR) 1.38 1.38 1.35 1.31 1.28
Average price of Brent for the quarter
(in US$/bbl) 108 109 110 102 112
About BOURBON
As a leader in offshore marine services, BOURBON offers the most demanding oil
& gas companies a comprehensive range of surface and subsea marine services for
offshore oil & gas fields and wind farms. These services are based on an
extensive range of latest-generation vessels and the expertise of more than
11,000 competent professionals. The Group provides local service through its
28 operating subsidiaries, close to clients and their operations, and it
guarantees the highest standards of service quality and safety worldwide.
BOURBON has two Activities (Marine Services and Subsea Services) and also
protects the French coastline for the French Navy.
In 2013, BOURBON posted revenues of EUR1.312 billion and as of March 31, 2013,
it operated a fleet of 498 vessels.
Under its "BOURBON 2015 Leadership Strategy" plan, the Group is investing in a
large fleet of innovative and high-performance offshore vessels built-in
series.
The latest action plan "Transforming for beyond" in its financial aspect aims
at the sale and bareboat chartering for 10 years of US$2.5 billion of new or
existing vessels. The first phase of the program has been signed for 51 vessels
and up to US$1.5 billion with ICBC Financial Leasing.
Through "Transforming for beyond", BOURBON wants to enlarge the scope of
achievable strategies beyond 2015 and be ready to deliver growth and value
creation further.
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, in the SBF 120 and CAC Mid 60
index.
CONTACTS
BOURBON
Investors - Analysts - Shareholders Relations
James Fraser, CFA +33 (0)4 91 13 35 45 -
james.fraser@bourbon-online.com
Communication Department
Christelle Loisel +33 (0)1 40 13 86 06 -
christelle.loisel@bourbon-online.com
PR Agency : 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
www.bourbon-online.com
BOURBON's latest news
12/02/2020 11:21
20/01/2020 14:35
10/01/2020 21:30
10/01/2020 14:35
03/01/2020 12:16
06/05/2014 08:00
02/05/2014 15:32
30/04/2014 07:00
15/04/2014 10:37
26/03/2014 18:00
Other stories
06/05/2024 13:32
06/05/2024 13:26
05/05/2024 22:05
06/05/2024 09:03
06/05/2024 11:12
06/05/2024 13:25
06/05/2024 13:14
06/05/2024 11:11
06/05/2024 10:03
06/05/2024 11:40
06/05/2024 10:22
06/05/2024 11:18
06/05/2024 11:57
Vladimir Putin reeling after Ukrainians unleash bloody chaos in major car bombing campaign - Express
06/05/2024 07:04
06/05/2024 12:08
06/05/2024 09:34
06/05/2024 11:14
06/05/2024 01:00
06/05/2024 08:29
06/05/2024 07:38
06/05/2024 08:05
06/05/2024 07:06
06/05/2024 14:22
06/05/2024 10:32
06/05/2024 13:09
06/05/2024 12:05
06/05/2024 12:34
06/05/2024 13:23
06/05/2024 12:37
06/05/2024 09:32
'Really good' - Liverpool boss Jurgen Klopp makes Tottenham Champions League point - Football.London
06/05/2024 06:00
06/05/2024 12:00
05/05/2024 03:34
06/05/2024 12:10
06/05/2024 12:45
05/05/2024 18:58
06/05/2024 08:15
06/05/2024 14:41