BOURBON (EPA:GBB) BOURBON - Virtually stable revenues for the 1st quarter of 2010 & strong growth for the Bulk activity

Transparency directive : regulatory news

05/05/2010 07:05

Paris, May 5, 2010

                   BOURBON Quarterly financial results

Virtually stable revenues for the 1st quarter of 2010 and strong growth for the
                                  Bulk activity.
   BOURBON vessels enjoy solid profile in a bottom-of-cycle offshore market.

Commenting on the results, Jacques de Chateauvieux, Chairman & Chief Executive
Officer of BOURBON said: "As expected, the offshore activity bottomed out in the
first half of 2010, while the bulk market benefited from continuing high freight
rates. The recovery that is already evident in the Offshore Marine Services
Activity, witness the new contract signed with Petrobras in Brazil, will
progressively influence activity in the second half and have a knock-on effect
on prices, with a preference for BOURBON vessels paving the way for the
upturn."

                                            1st quarter
                                                  Change at  Change at
(in millions of euros)       Q1 2010(*)  Q1 2009   current    constant
                                                   exchange   exchange
                                                    rates      rates

Offshore Division              189.0      202.0      -6.5%      -3.3%
   of which Marine Services    153.3      166.7      -8.0%
   of which Subsea Services     35.6       35.3      +0.8%
Bulk Division                   38.5       29.9     +28.6%     +36.5%
Other                            8.8        6.7     +30.2%     +46.8%
BOURBON TOTAL                  236.2      238.7      -1.0%      +3.1%
(*) unaudited figures

Revenues in the 1st quarter of 2010 were virtually stable compared with the same
period in 2009 (up 3.1% at constant exchange rates), to a total of 236.2 million
euros. The Offshore Division was down 6.5%, the impact of the fleet's vigorous
growth being unable to offset the slump in market conditions. The 28.6% increase
in Bulk revenues reflects the continuing high level of freight rates and an
increase in the number of vessels operated.

- OFFSHORE DIVISION

Year-on-year, revenues for the Offshore Division in the first quarter were down
6.5% (-3,3% at constant exchange rates) to 189.0 million euros. This decline
reflects the progressive deterioration in market conditions over the last year.
Nevertheless, revenues for BOURBON vessels were almost 1% higher, thanks to the
commissioning of 67 vessels (24 in the Bourbon Liberty series) over the last
twelve months.

The decline in revenues continued from the last quarter, but at a reduced rate
(-2.9% compared with - 6.3% in the previous quarter). Revenues for BOURBON
vessels fell 1.5%, compared with a decrease of 4.9% in the last quarter of
2009.

These factors confirm the pertinence of the strategy of investing in a modern
and efficient fleet that will enable our clients lower their costs.

* Revenues by Activity

(in millions of euros)   Q1 2010   Q1 2009   Change   Q4 2009   Change
                                                %                  %

Marine Services            153.3     166.7    -8.0%     155.7    -1.5%
Subsea Services             35.6      35.3    +0.8%      38.9    -8.3%
TOTAL                      189.0     202.0    -6.5%     194.6    -2.9%
BOURBON vessels            180.3     179.3    +0.6%     183.0    -1.5%
Chartered vessels            8.6      22.7   -61.9%      11.6   -25.5%

Marine Services

Year-on-year, revenues for the Marine Services activity in the 1st quarter were
down 8% at 153.3 million euros. This decline is largely due to a reduction in
revenues from chartered vessels.

The impact of the continuing decline in utilization rates and charter prices on
the revenues for BOURBON's vessels was offset by the increase in the number of
vessels.

Subsea Services

Year-on-year, revenues for the Subsea Services activity were almost 1% higher;
this reflects the importance of chartered vessels, pending the commission of the
first IMR vessels that are under construction in China, in the second half of
2010.

* Revenues by geographical region

                                            1st quarter
(in millions of euros)            Q1 2010     Q1 2009      Change
Offshore Division                   189.0       202.0       -6.5%
                     Africa         121.2       134.5       -9.9%
   Europe & Med/Middle East          27.7        33.4      -17.0%
                       Asia          19.3        21.4      -10.1%
         American Continent          20.7        12.6      +63.9%

In the 1st quarter, the extent of the deterioration of conditions depended on
the region. The American continent progressed strongly, thanks to the Mexico
activity and the acquisition of the remaining 50% of the Group's holding in
Brazil. By contrast, Europe, especially the North Sea, was particularly
affected, as was Asia, albeit to a lesser extent. In Africa, which represents
the main area of activity, there was a significant decline in Angola and the
Congo, with only Equatorial Guinea making headway.

- BULK DIVISION

In the 1st quarter, revenues for the Bulk Division came to 38.5 million euros,
up 28.6% compared with the 1st quarter 2009. This strong growth was due partly
to the very sharp rise in freight rates over the previous year, with the Baltic
Supramax Index (BSI) registering $25,216/day versus $10,875/day in 2009; while
on the other hand, the increase in the number of vessels in operation (+5
full-time equivalent vessels) took the average number of vessels in the quarter
to 23, in a market seeing renewed growth. Meanwhile, performance remains
impacted by the long-term contractualization policy.

Compared with the previous quarter, revenues were 35.8% higher due to the
continuing improvement in freight rates and the increase in the number of
operated vessels (+ 4 full-time equivalent vessels).

It should be noted that the Division took delivery of 4 vessels in the 1 st
quarter. Following the sale of two bulk carriers in January 2010, this takes the
number of BOURBON's directly-owned vessels to 14.

- MAJOR OPERATIONS AND HIGHLIGHTS

As announced on March 4, 2010, BOURBON now wholly owns its Brazilian subsidiary
Bourbon Offshore Maritima, formerly Delba Maritima Navegação. The buy-out
agreements were signed on December 29, 2009.

It should be noted that the sale by the Bulk Division of two bulk carriers
generated a net capital gain of 22 million dollars.

- OUTLOOK
  Offshore Division

Given the expected increase in demand for oil, the faster pace of decline in
production in existing fields, and the necessity in the medium term of
reconstituting reserves, an upturn in oil activity is expected in 2010.
Production maintenance activities should be the first to benefit followed, in
the second half of 2010, by drilling activities.

The market's recovery allows the Group to anticipate a gradual recovery in
activity, with the initial effects expected during the second half of 2010.

In accordance with its Horizon 2012 plan and its strategy of "investing to
reduce client costs", BOURBON will continue to take delivery of new modern
high-productivity vessels, such as the Bourbon Liberty vessels, which provide
the continental offshore market with replacement vessels that transport more,
consume less and have the maneuverability of vessels operating in deepwater
offshore.

Bulk Division

At April 1, 2010, the Bulk Division directly owned 13 bulk vessels and one
cement carrier. It will take delivery of two new 58,000-tonne Supramax vessels
before the end of 2010. Freight rates are expected to continue at current levels
for the remainder of the year, which, despite vessels already chartered out to
third parties, will still have a favorable impact on activity in the coming
months.

- FINANCIAL CALENDAR

- Combined Annual and Special Shareholders' Meeting:            June 9, 2010

- 2nd quarter and 1st half 2010 revenues:                     August, 9 2010

- 1st half 2010 financial results:                           August 31, 2010

- Presentation of 1st half 2010 results:                 September 1st, 2010

                                    APPENDICES

* BOURBON QUARTERLY DATA

                                    2010                  2009
(in millions of euros)               Q1       Q4       Q3       Q2       Q1

Offshore Division
Marine Services                    153.3    155.7    167.5    171.6    166.7
Subsea Services                     35.6     38.9     40.1     34.1     35.3

Offshore TOTAL                     189.0    194.6    207.6    205.7    202.0

of which BOURBON vessels           180.3    183.0    192.5    184.5    179.3
of which chartered vessels           8.6     11.6     15.1     21.2     22.7

Bulk Division                       38.5     28.3     30.5     30.6     29.9

Other                                8.8      8.6      8.8      7.2      6.7

BOURBON TOTAL                      236.2    231.5    246.8    243.5    238.7

* Key indicators

                                              Q1 2010      Q1 2009      Change
EUR/$ Average exchange rate for
the quarter (in EUR)                            1.38         1.30         + 6%
EUR/$ Exchange rate at closing on
March 31 st (in EUR)                            1.35         1.33         + 1%
Average Brent price for the quarter
(in $/bl)                                     76 $/bl      45 $/bl       + 68%
Average Baltic Supramax Index for
the quarter (in $/day)                    25,216 $/day  10,875 $/day    + 132%

About BOURBON
BOURBON offers a broad range of offshore oil and gas marine services. Under its
strate gic 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
Jérôme Goaer      +33 (0)1 57 32 85 35  jerome.goaer@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

source : webdisclosure.com

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BOURBON (EPA:GBB) BOURBON - Virtually stable revenues for the 1st quarter of 2010 & strong growth for the Bulk activity

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