BOURBON (EPA:GBB) BOURBON : 1st quarter revenues up 12.8%

Transparency directive : regulatory news

07/05/2009 07:00

Paris, May 7, 2009,

BOURBON Quarterly Financial Results

1st quarter revenues up 12.8% and strong growth of the Offshore activity up
47.7% (+36% at constant exchange rates) compared with the 1st quarter of 2008

Revenues for the first quarter of 2009 were up 12.8% compared with the same
period in 2008, totaling 238.7 million euros. The Offshore Division posted
strong growth, benefiting from the full effect of vessels commissioned in 2008
and a favorable base effect. The Bulk Division felt the dual effect of an
activity slowdown and a collapse in freight rates. Finally, the taking into
account of the rate of the dollar makes the comparison favorable for BOURBON.

"In a market environment now affected by the economic slowdown and falling oil
prices, the Offshore Division still has strong potential for growth owing to its
investment strategy in innovative and high performance vessels at lower costs
for clients, says Jacques de Chateauvieux, Chairman and Chief Executive Officer
of BOURBON. The medium-term outlook is still favorable, and while uncertainty
about the recovery affects our clients short-term decisions, the outlook for
growth under the Horizon 2012 plan still holds true."

. FIRST QUARTER 2009 REVENUES

                                                1st quarter 2009
                                                     Change at       Change at
                                                     current         constant
(in millions of euros)      Q1 2009     Q1 2008      exchange        exchange
                                                     rates           rates
Offshore Division             202.0       136.8        +47.7%         +36.2%
   of which Marine Services   166.7       112.5         48.1%
   of which Subsea Services    35.3        24.2         45.8%
Bulk Division                  29.9        65.6        (54.4%)        (60.3%)
Other                           6.7         9.3        (27.4%)        (30.4%)
BOURBON TOTAL                 238.7       211.7        +12.8%          +3.4%

. OFFSHORE DIVISION

Year-on-year, revenues for the Offshore Division in the first quarter were up
47.7% (+36.2% at constant exchange rates) to 202.0 million euros. The growth in
this quarter was due mainly to the full impact of the vessels commissioned in
2008, and the deliveries, early this year, of 5 supply vessels (including 4
Bourbon Liberty vessels) and 14 crew-boats.

From one quarter to another, the activity is down owing to the effect of
non-recurring items, a sizeable payment for salvage services received in the
last quarter of 2008, as well as the lack of availability of an especially large
number of vessels early this year due to routine maintenance.

(in millions of euros) Q1 2009    Q1    Change     %     Q4 2008  Change    %
                                 2008
Marine Services        166.7    112.5    54.2   +48.1%    170.6   (3.9)  (2.3%)
Subsea Services         35.3     24.2    11.1   +45.8%     38.5   (3.2)  (8.2%)
TOTAL                  202.0    136.8    65.2   +47.7%    209.1   (7.1)  (3.4%)
   BOURBON vessels     179.3    117.6    61.7   +52.4%    185.4   (6.1)  (3.3%)
   Chartered vessels    22.7     19.1     3.6   +18.5%     23.7   (1.0)  (4.3%)

Marine Services for this quarter saw a sustained pace of commissioning of new
vessels, including the Bourbon Liberty vessels, which are enjoying a high
satisfaction rate with customers

In Subsea Services, the use of charters is still necessary while the
commissioning of the first IMR vessels, now under construction in China, is not
scheduled before the second half of 2010.

Breakdown of the Offshore Division's revenues by geographical region

                                                      1st quarter 2009
(in millions of euros)                      Q1 2009       Q1 2008       Change
Offshore Division                             202.0         136.8         +48%
                         Africa               134.5          92.0         +46%
       Europe & MediMiddle East                33.4          26.3         +27%
                           Asia                21.4           7.7        +178%
             American continent                12.6          10.8         +17%

Year-on-year, the context of the different markets in which BOURBON is active
changes in contrasting ways.
In Africa, which accounts for 67% of the Division's revenues, markets are still
growing, in a context favorable to well established players, of which BOURBON is
one.
In the Gulf of Mexico, where BOURBON has little or no presence, and in the North
Sea, the spot markets are affected by the activity slowdown while the number of
available vessels is increasing with the delivery of new vessels.
In Asia, just as in the Middle East, where activity is steady, the utilization
rates of the existing fleets differ noticeably depending on the degree of
innovation of the vessels and hence their efficiency in terms of user costs.
This difference can also be evaluated in terms of daily rates, to BOURBON's
benefit.
Finally, the determination of both nations and national oil companies sustains
the dynamics of the markets. This is especially true of India and the
Mediterranean, as well as Brazil and Mexico.

. BULK DIVISION

The sharp reduction in revenues in the Bulk Division in the first quarter of
2009 to 29.9 million euros (a decline of 54.4% compared with the first quarter
of 2008) reflects an activity slowdown (6 full time equivalent vessels less) and
the sharp drop in freight rates (-78%).
Indeed the Baltic Supramax Index (BSI) average for the first quarter of the year
is $ 10,875/day compared with the first quarter of 2008, when it totaled an
average of $ 50,265/day. Our longterm contracting policy has enabled us to limit
the effect of unfavorable trends.
During the quarter, the Bulk Division took delivery of 2 Supramax vessels, which
raises the fully owned fleet to 7 units.

. OPERATIONS AND MAJOR HIGHLIGHTS

On March 24, the Luxembourg company Jaccar Holdings, rose above the 5%, 10%, 15%
and 20% thresholds of the BOURBON's capital and voting rights following a
transfer of ownership stakes. Jaccar Holdings is resuming the role of
shareholder played by the firm Jaccar until now while following through smoothly
with any commitments made by the latter company, i.e. a shareholder assisting
with the growth and strategy decided on by the BOURBON Board of Directors.
On March 24, Jaccar Holdings owned 13.8 million shares of BOURBON stock, which
is 24.89% of the capital and voting rights.

. OUTLOOK

Offshore Division

The offshore market, with its strong medium-term potential, reflects the
investment strategy of the oil companies and the trend in sustained demand by
the large developing countries, is undergoing a period affected in the
short-term by the following factors:
   - Low oil prices
   - Anticipation of a drop in daily rates in response to a desire to lower
     customer costs
   - Availability in some markets (United States, Norway, etc.) and for some
     kinds of vessels (generally high end) of a number of units exceeding
     current demand.

In this context, BOURBON's innovative, high performance vessels, the use of
which reduces customer costs, are reaping the benefits of a still buoyant
market. They have a high utilization rate and are well received by customers,
enabling them to sustain prices.
Thus in 2009, BOURBON's Offshore Division should post growth at least in line
with the average expected for the period under the Horizon 2012 plan.

Bulk Division
In the bulk industry, the caution of the players is reflected by the stable
forward freight rates that guarantee a return on the contracts made on the
vessels. The cancellation or change in delivery schedule for vessels under
construction, the importance of demolition for old vessels and the end of
merchandise destocking may have a favorable effect on future rates.
In the light of the knowledge we have today, i.e. our industrial clients' need
for transportation, and the percentage of our vessels out on charter to third
parties, we do not believe , at the level of the market, that the positive
contribution of the Bulk Division Activity is in doubt, even though it's results
will be significantly reduced.

. FINANCIAL CALENDAR
   - Combined Annual and Special Shareholders' Meeting:   June 3, 2009

   - 2nd quarter and 1 st half 2009 financial results:    August 10, 2009

   - Presentation of first half 2009 results:             August 26, 2009

                                  APPENDICES

. BOURBON quarterly data

                             2009                      2008
(in millions of euros)        Q1            Q4      Q3      Q2      Q1
Offshore Division           202.2          209.1   178.0   148.2   136.8

  Marine Services           166.7          170.6   140.2   116.1   112.5
  Subsea Services            35.3           38.5    37.7    32.1    24.2
Bulk Division                29.9           44.0    57.4    67.8    65.6
Other                         6.7            5.1     4.1     6.0     9.3
BOURBON TOTAL               238.7          258.2   239.5   222.0   211.7

. Key indicators

                                                     Q1 2009   Q1 2008  Change
Average USD exchange rate for the quarter (in EUR)       1.30      1.50   +15%
USD exchange rate at closing on March 31 (in EUR)        1.33      1.58   n.s
Average Brent price for the quarter (in $/bl)        47 $/bl    98 $/bl   n.s
Average Baltic Supramax Index for the
quarter (in $/day)                                    10 875    50 265    -78%
                                                      $/day      $/day

About BOURBON
As at December 31, 2008, BOURBON is present in over 28 countries with a staff of
5,700 skilled pro fessionals, a directly-owned fleet of 293 vessels and 176
vessels on order.
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 an expanded offer of Subsea Services.
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 57 32 85 92 stephanie.elbaz@consultants.publicis.fr
Elodie Woillez     +33 (0)1 57 32 86 97  elodie.woillez@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

   www.bourbon-online.com

BOURBON's latest news

12/02/2020 11:21

BOURBON (EPA:GBB) BOURBON : 1st quarter revenues up 12.8%

Transparency directive : regulatory news

BOURBON's latest news

Other stories