BOURBON (EPA:GBB) BOURBON : Annual Results 2008

Transparency directive : regulatory news

26/03/2009 07:00

Paris, March 26, 2009

Strong growth and robust earnings in 2008

Revenues increase 21% to EUR931.3m
EBITDA of EUR351m
Net income, group share of EUR224.4m

"The strength of our strategy is to invest in order to reduce clients' costs,"
stated Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON
"and putting into service new-generation innovative and high performance
vessels, constructed in series at extremely competitive costs, sustains the
growth in the Offshore Division operating income and provides a positive outlook
for 2009. The 21% increase in revenues and EBITDA of EUR351 million provide a
solid basis for fully achieving the objectives of our Horizon 2012 strategic
plan."

In millions of euros                                 2008   2007    Change
Revenues                                             931.3  769.7   +21.0%
   Gross operating income excluding capital gains    316.7  262.1    20.8%
   Operating income excluding capital gains          205.0  166.6   +23.1%
   Capital gains                                      34.3   47.6     n.s
Gross operating income(EBITDA)                       351.0  309.7   +13.3%
Operating income (EBIT)                              239.3  214.2   +11.7%
   Net financial income /(loss)                      (75.8) (37.9) +100.2%
   Share in income / (loss) of associates              2.9    3.1     n.s
   Income tax                                         (3.1)  (8.4)    n.s
   Net income from discontinued operations and gains
   on equity interests sold                           70.6  232.8     n.s
   Minority interests                                 (9.4) (13.1)    n.s

Net income, group share                              224.4  390.8   -42.6%

Revenue growth was essentially attributable to the strong increase in the
Offshore Division revenues, which rose by 38.7%, and a resilient performance by
the Bulk Division, which reported stable revenue growth of +2.9% at a constant
exchange rate (12% year-on-year fall in the average annual BSI index).
These good results were achieved at an average exchange rate of US$1.47 per EUR1
for the 2008 reporting period.
Gross operating income and operating income excluding capital gains on disposal
of vessels increased by more than 20% compared with 2007 to EUR316.7 million and
EUR205.0 million, respectively.
Operating income rose to EUR239.3 million which included EUR34.3 million in
capital gains essentially attributable to the disposal of a bulk carrier
completed in July.
Net financial loss included EUR52 million in unrealised losses corresponding to
the impact of exchange rates and EUR19 million written down on the value of
Gulfmark Offshore shares received as part payment upon the sale of Rigdon Marine
and still held by the Group.
Gains on disposal of activities amounted to EUR70.6 million and included EUR59
million in proceeds from the sale of Rigdon Marine.
Net income, group share, came to EUR224.4 million, representing earnings per
share of EUR4.04.

. OFFSHORE DIVISION

In the first year of the Horizon 2012 strategic plan, Offshore Division revenues
showed a solid growth of 38.7% to EUR672.1 million.Revenues generated by owned
vessels rose by 31.3% to EUR581.5 million whilst revenues generated by chartered
vessels increased to EUR90.6 million, up from EUR41.5 million in 2007.

Gross operating income (EBITDA) excluding capital gains came to EUR240.9 million
(up 26.6%) while the EBITDA margin increased significantly in the second half of
the year.

Operating income, excluding gains on disposal of vessels, rose 22.1% to EUR132.5
million.

In millions of euros                                  2008    2007    Change
Revenues                                              672.1   484.5   +38.7%
                            o/w owned vessels         581.5   443.0   +31.3%
                            o/w chartered vessels      90.6    41.5  +118.3%
Gross operating income excluding capital gains        240.9   190.3   +26.6%

                                % of revenues      35.8%   39.3%
Operating income excluding capital gains              132.5   108.5   +22.1%
                                % of revenues      19.7%   22.4%
Capital gains                                       6.7    24.7     n.s
Gross operating income (EBITDA)                   247.6   214.9   +15.2%
Operating income (EBIT)                           139.2   133.2    +4.5%

Growth generated by the Offshore Division was in line with the objectives of the
Horizon 2012 strategic plan and reflected:
    - A steady flow of new vessels deliveries during the year (20 supply
      vessels, 2 IMR vessels and 40 crewboats),
    - Positive revaluation on contracts that had expired and were renewed
      during the year
    - The successful introduction of new-generation vessels which are
      particularly appreciated by clients in the current market environment due
      to the significant cost savings they allow.

. BULK DIVISION

Bulk Division freight rates reached all-time highs in the first three quarters
of the year and declined sharply in the final quarter. Division revenues totaled
EUR234.8 million, versus EUR244.8 million in the previous year.
Operating income reflected a tonnage of 14 million tons versus 16 million tons
in 2007.

In millions of euros                                 2008   2007     Change
Revenues                                             234.8  244.8    -4.1%
Gross operating income excluding capital gains        78.7   66.4   +18.5%
                                 % of revenues     33.5%  27.1%
Operating income excluding capital gains              75.8   56.7   +33.7%
                                 % of revenues     32.3%  23.2%
Capital gains                                         27.6   22.9     n.s
Gross operating income (EBITDA)                      106.3   89.3   +19.0%
Operating income (EBIT)                              103.5   79.6   +29.9%

Buoyed by the policy of securing medium-term commitments for a portion of the
fleet, EBITDA generated by owned vessels remains at record levels as a result of
the average level of freight rates for 2008 ($41,550/day) and 2007
($47,361/day).
In spite of the decline in shipping volumes, freight transport operations
generated a significant increase in operating income which, in part, reflected
the positive impact from long-term chartered bulk carriers.

.  2009 OUTLOOK

Offshore Division

In 2009, the offshore industry will be impacted by the current low oil prices
which force oil and gas clients to achieve cost savings. This may lead some
independent operators to scale back on investment programs.

Backed by a unique strategy and market position, and with 31 supply vessels
(including 22 Bourbon Liberty vessels), 2 IMR vessels and 44 crewboats due to be
delivered in 2009, BOURBON continues to enjoy favorable growth and profitability
prospects:

  * BOURBON's clients have limited exposure to debt financing difficulties
The Offshore Division generates 90% of its overall revenues from the super-major
oil companies and major national oil companies, whilst independent oil companies
account for the remaining 10%.

* Vessels in operation or under construction are adjusted to market conditions
   and client needs
The conception of new generation vessels as well as the economies of scale
achieved on their cost enable clients to improve productivity, a point
particularly appreciated in the current market context.
BOURBON vessels are operated by clients during the production and maintenance
phases that have, by nature, a limited exposure to fluctuations in oil prices.
The new multi-purpose vessels are built in series and are ideally suited to
replace the ageing and obsolete fleet in the continental offshore market.

* The choices made by the Group in terms of financial and contractual policies
   allow sufficient visibility on the Offshore Division activity in 2009.
Long-term commitments have been secured for 80% of the Offshore Division
vessels.
On 1st January 2009 the average remaining length on signed contracts is 23
months, or 35 months if optional contracts are included.
For 2009, a significant portion of the margin is secured via hedging instruments
for dollar- denominated revenues at an average rate of 1.27.

Bulk Division

The Bulk Division will take delivery of seven new bulk carriers in 2009 and will
also develop its freight operator activity for the benefit of its clients.
Financial results will reflect the impact of the policy of securing medium-term
commitments, market freight rates and revenues generated by the freight operator
activity.

BOURBON

At the Combined Shareholders' Meeting to be held on June 3, 2009, a proposal
will be made of a dividend of EUR0.90 per share, an increase of 28% compared
with the previous year's ordinary dividend of EUR0.70, and also a distribution
of 1 bonus share for every existing 10 shares held.

. FINANCIAL CALENDAR
  - 1st quarter 2009 financial information:                      May 7,2009
  - Ordinary and extraordinary shareholders meeting:                June 3,2009
  - 2nd quarter 2009 and 1st half 2009 financial information:    August 10,2009
  - Presentation of 1st half 2009 results:                  August 26,2009

About BOURBON
With 5,700 professionals and a fleet of 293 owned vessels and 176 units on
order, BOURBON is currently present in more than 28 countries.
BOURBON offers a broad range of offshore oil and gas marine services. Under the
Horizon 2012 plan BOURBON intends to become the leader in modern offshore oil
and gas marine services by offering the most demanding clients worldwide, a full
line of innovative, high performance and new-generation vessels and a modular
offer of Inspection, Maintenance and Repair services, with the launch of its new
"Subsea Services" Activity.
BOURBON also specializes in bulk transport and 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 and Dow Jones Stoxx 600 indices.

Contacts
Publicis Consultants / Press Relations
Stéphanie Elbaz     +33(0)1 44 43 79  stephanie.elbaz@consultants.publicis.fr
Matthieu Pirouelle  +33(0)1 44 43 76  matthieu.pirouelle@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

2008 annual results press conference available on BOURBON new website:

  . Conference slideshow available as from 10.30 a.m.
  . Webcast replay synchronized with the slideshow as from 1.00 p.m.

                              www.bourbon-online.com

BOURBON's latest news

12/02/2020 11:21

BOURBON (EPA:GBB) BOURBON : Annual Results 2008

Transparency directive : regulatory news

BOURBON's latest news

Other stories