BOURBON (EPA:GBB) BOURBON - First half 2010 results
Transparency directive : regulatory news
31/08/2010 18:00
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Paris, August 31, 2010,Gross operating income (EBITDA) steady at 168.5 million euros
Net income group share totals 41 million euros in the first half of 2010
BOURBONs activity is focused on offshore oil and gas marine services, and
we have expanded our fleet rapidly, taking delivery of one supply vessel every
12 days. The offshore oil market is at its lowest and average daily rates have
been down since the end of 2008, remaining low during the first half of 2010,
says Jacques de Chateauvieux, Chairman & Chief Executive Officer of BOURBON.
Thanks to its innovative and high productivity fleet enabling customers
costs to be reduced, BOURBON has maintained a satisfactory utilization rate
for its vessels in the first semester 2010 of nearly 80%. In this unfavorable
market, the fall in gross operating income is due mainly to sluggish revenue
increases and to the growth of operating costs due to the large number of
vessels added to the fleet. Furthermore, because of the increase in the
depreciation and impairment charge for the 16 bulk carriers, the sales of
which are intended to finance the BOURBON 2015 Leadership Strategy,
operating income is down sharply.
Judging by the success of the BOURBON fleet with customers, BOURBON will be
among the first to benefit from the recovery of the offshore market, which
is already perceptible and which is expected to pick up throughout 2011.
Thus we are therefore confident that the goals of the new BOURBON 2015 plan
will be easily met.
In millions of euros H1 2010 H2 2009 H1 2009 Change
H1 2010
/H1 2009
Revenues 490.4 461.4 468.4 +4.7%
Gross operating income
excluding capital gains 146.6 164.9 171.9 (14.7)%
Capital gains 22.0 0.2 1.0
Gross operating income
(EBITDA) 168.5 165.2 172.9 (2.5)%
Impairment charge (34.3) - -
Other amortization,
depreciation and provisions (94.8) (72.3) (59.2)
Operating income (EBIT) 39.4 92.8 113.7 (65.3)%
Net financial income / (loss) 13.8 (13.9) (18.7)
Income tax (10.0) (3.3) (5.7)
Net income from discontinued
operations and gains on equity
interests sold (1.5) 5.4 1.2
Minority interests (0.7) (8.0) (8.3)
Net income, group share 41.0 73.1 82.3 (50.1)%
BOURBON's first half revenues total EUR490.4 million, up 4.7% compared with the
first half of 2009, owing to the increase in revenues in the Bulk Division and
to steady revenues in the Offshore Division under tough market conditions.
Gross operating income (EBITDA) totals EUR1 68.5 million, which is a decline
limited to 2.5% compared with the first half of 2009, thanks to the capital
gains made on the bulk carriers sold during the period. Excluding capital
gains, gross operating income (EBITDA) reached EUR1 46.6 million, down 14.7%.
The 65.3% decline in operating income to EUR39.4 million is due to an increase
in the depreciation associated with the growth of the Offshore and Bulk fleets
as well as the recognition of an impairment charge of EUR34.3 million euros
following the agreement to sell 16 bulk carriers.
The positive financial result for the period, despite the increase in debt,
reflects the increased value of the financial instruments and a positive
foreign exchange differential.
Net income group share amounts to EUR41 .0 million, down 50.1% from the same
period in the previous year.
Compared with the second half of 2009, revenues rose by 6.3% for the same
reasons: increase in the Bulk Division and steady performance by the Offshore
Division. Likewise, the 11.1% decrease in EBITDA excluding capital gains
reflects in particular the unfavorable conditions of the offshore market and
the increased in the cost of a growing fleet.
● OFFSHORE DIVISION
Over the past twelve months, the Offshore Division has taken delivery of 66
units. It had a utilization rate of 79.5% in the first half of 2010 compared
with 80.5% in the previous half year and 86.4% during the first half of 2009.
This steady performance confirms the favorable welcome given to the new BOURBON
vessels in a tougher market.
Compared with the first half of 2009, revenues from BOURBON vessels rose by
6.5% to EUR387.3 million, while revenues from chartered vessels fell by EUR27
million.
Overall, first half revenues for the Division remained relatively stable from
one year to the next at EUR403.8 million.
Gross operating income (EBITDA) fell by 20.2% to EUR1 25.7 million, as
operating costs rose under the combined effect of numerous additions of new
vessels to the fleet and repositioning of more vessels than before reaching
the end of their contract.
Operating income is down 60.8% at EUR40.9 million, owing to the increase in
the depreciation of vessels.
Compared with the second half of 2009, revenues held steady in an unfavorable
market. Revenues f rom BOURBON vessels rose 3.2% while revenues from chartered
vessels fell by EUR1 0.2 million.
In millions of euros H1 2010 H2 2009 H1 2009 Change
H1 2010
/H1 2009
Revenues 403.8 402.2 407.7 (0.9)%
from owned vessels 387.3 375.5 363.8 + 6.5%
from chartered vessels 16.5 26.7 43.8 (62.3)%
Gross operating income excluding
capital gains 125.7 154.2 157.5 (20.2)%
% of revenues 31.1% 38.3% 38.6%
Capital gains - 0.5 1.2
Gross operating income (EBITDA) 125.7 154.7 158.7 (20.8)%
Amortization, depreciation
and provisions (84.8) (65.2) (54.3)
Operating income (EBIT) 40.9 89.5 104.4 (60.8)%
Marine Services
Over the six-month period, in a market downturn, Marine Services revenues
generated by the directly owned fleet amounted to EUR31 9.4 million, up 5.6%
compared with the first half of 2009. The charter services activity is down
substantially, with revenues down by EUR30.6 million.
Gross operating income fell by 25.8% to EUR98.8 million compared with the first
half of 2009, due to worsening market conditions and the increase in costs
related in particular to the growth of the fleet.
Utilization rate of the supply vessels is 82.9%, compared with 87.4% in the
second half of 2009 and 91.7% in the first half of 2009.
In millions of euros H1 2010 H2 2009 H1 2009 Change
H1 2010
/H1 2009
Revenues 324.5 323.2 338.2 (4.0)%
from owned vessels 319.4 309.5 302.5 +5.6%
from chartered vessels 5.1 13.7 35.7 (85.7)%
Gross operating income excluding
capital gains 98.8 122.5 132.0 (25.2)%
% of revenues 30.4% 37.9% 39.0%
Capital gains - 0.5 1.2
Gross operating income (EBITDA) 98.8 123.1 133.2 (25.8)%
Subsea Services
Over the six-month period, Subsea Services revenues rose by 14.3% to EUR79.3
million, compared to the first half of 2009, owing mainly to the growth of the
BOURBON fleet.
The fact that gross operating income held up well at EUR26.9 million, or +5.5%,
reflects the contracting of vessels over longer periods than in Marine
Services.
The utilization rate of the IMR vessels is 85.4%, compared with 89.7% in the
second half of 2009 and 86.6% in the first half of 2009.
In millions of euros H1 2010 H2 2009 H1 2009 Change
H1 2010
/H1 2009
Revenues 79.3 79.0 69.4 +14.2%
from owned vessels 67.9 66.0 61.3 +10.8%
from chartered vessels 11.4 13.0 8.1 +40.1%
Gross operating income excluding
capital gains 26.9 31.6 25.5 +5.6%
% of revenues 34.0% 40.1% 36.7%
Capital gains - - -
Gross operating income (EBITDA) 26.9 31.6 25.5 +5.6%
● BULK DIVISION
Taking into account vessels' sales early in the year, gross operating income
amounts to EUR48.1 million. Operating income after recognition of depreciation
on directly owned vessels and an impairment charge of EUR 34.3 million on the
16 bulk carriers whose sale was decided in the first semester, amounts to
EUR4.2 million.
Compared with the second half of 2009, revenues rose by 46.8% owing to the
increase in the directly owned fleet (with an average of 3 additional owned
vessels on the period) and charters, and also to the improvement in rates.
Gross operating income excluding capital gains rose by 58.4%.
In millions of euros H1 2010 H2 2009 H1 2009 Change
H1 2010
/H1 2009
Revenues 86.3 58.8 60.5 +42.6%
Gross operating income excluding
capital gains 26.2 16.5 20.9 +25.4%
% of revenues 30.3% 28.1% 34.5%
Capital gains 22.0 - -
Gross operating income (EBITDA) 48.1 16.5 20.9 +130.7%
Impairment charge (34.3) - -
Other amortization, depreciation
and provisions (9.6) (6.4) (3.7)
Pperating income(EBIT) 4.2 10.1 17.2 (75.3)%
● OUTLOOK Offshore Division
The Offshore Division activity should benefit from a recovery in investments by
the oil companies in exploration, production and maintenance during the second
half of 2010. This recovery is already noticeable in West Africa and Asia.
With tougher demands by customers in terms of safety and efficiency of offshore
service vessels, they are expected to prefer the most up-to-date fleets rather
than older vessels, particularly in continental offshore. In this context,
BOURBON is expected to be among the first to benefit from a market recovery,
and its vessels are expected to see their utilization rate gradually improve.
Finally, the economic activity of the emerging countries and the maintenance of
oil prices at current levels should support capital expenditures and hence the
future demand for vessels.
Bulk Division
The agreement to sell 16 bulk carriers signed on June 25 with US group Genco
Shipping & Trading Ltd, was confirmed in July. So far 10 sales of bulk carriers
have already been made for a price of USD332 million, and 5 others are expected
to follow by the end of the year, which will naturally affect revenues and the
EBITDA of the Bulk Division. The last vessel will be sold in the first half of
2011. After the disposal program, the Bulk Division will own a cement carrier
directly and will continue to operate an average of 10 to 12 bulk carriers.
BOURBON 2015
The implementation of the new strategic plan announced on June 25 has started.
Firm orders have been placed for 39 offshore vessels worth USD 580 million. The
asset disposal program for EUR500 million, launched with the agreement to sell
16 bulk carriers to Genco Shipping & Trading Ltd, should continue with the sale
of the shares still held in the company Sucrerie de Bourbon Tay Ninh.
Backed by a USD 2 billion investment program and appropriate financing (asset
sales, bank loan and a very favorable improvement in payment terms for vessels
under construction), the "Bourbon 2015 Leadership Strategy" plan has the
following objectives for the period 2011-2015:
- Average annual growth in Offshore revenues of 17%,
- A fleet availability rate of more than 95%,
- And by 2015, a ratio of EBITDA to Offshore revenues of 45% and a ratio of
EBITDA to capital employed of 20%.
The combined effect of cash flow generation by operations, asset disposals in
2010 and the new vessel payment policy should result in a debt-equity ratio
below 0.5 and a ratio of net debt to EBITDA below 2, by the year 2015. This
means BOURBON would generate positive cash flows as from 2013.
● ADDITIONAL INFORMATION
The accounts for the first half of 2010 were closed by the Board of Directors
on August 30, 2010. The accounts were subjected to a limited examination by the
statutory auditors.
BOURBON scope
When the new "BOURBON 2015 Leadership Strategy" plan was announced, BOURBON
unveiled its intention to dispose of assets totaling EUR500m, mainly in 2010.
In particular, the Group is confident that its proposed sale of shares still
held in Sucrerie de Bourbon Tay Ninh will be concluded in the near future.
As a result of this and pursuant to IFRS, the financial data related to the
sugar operations in Vietnam have been reclassified as "income from activities
held for sale"; in particular, this income no longer appears in the "Other"
item of BOURBON's revenues in the table below, and the figures for 2009 have
consequently been restated.
● FINANCIAL CALENDAR
- 3rd quarter 2010 financial information November 9, 2010
- 4th quarter and full-year 2010 revenue release February 9, 2011
- Presentation of 2010 annual results March 16, 2011
APPENDIX I
In millions of euros 06/30/2010 12/31/2009
Net properties and equipment 2,900 3,096
Other non-current assets 103 78
TOTAL NON-CURRENT ASSETS 3,003 3,174
Other current assets 487 435
Cash and cash equivalents 168 153
TOTAL CURRENT ASSETES 655 588
Current assets held for sale 519 -
TOTAL ASSETS 4,177 3,762
06/30/2010 12/31/2009
Shareholder's equity 1,517 1,487
Financial debt > 1 year 1,416 1,450
Other long-term liabilities 122 63
TOTAL NON-CURRENT LIABILITIES 1,538 1,513
Financial debt < 1 year 776 453
Other current liabilities 313 309
TOTAL CURRENT LIABILITIES 1,089 762
Non-current liabilities held
for sale 33 -
TOTAL LIABILITIES 4,177 3,762
APPENDIX II
Statement of consolidated cash flow
In millions of euros First half
2010 2009
Consolidated net profit/loss 41.8 90.5
Cash flow 134.8 158.3
Net cash flow from operating activities (*) 108.2 154.2
New cash flow consumed by investing
activities (*) (263.2) (385.2)
Incl. acquisition of property, plant and
equipment and intangible assets (318.7) (392.1)
Incl. sale of property, plant and
equipment and intangible assets 71.0 3.0
Net cash flow from financing activities (*) 44.2 70.5
Incl. increase (decrease) in borrowings 137.1 139.6
Incl. dividends paid to the shareholders
of the group (58.9) (47.9)
Incl. net financial interest paid (27.4) (14.3)
Effect of change in exchange rates 10.9 1.0
Net increase (decrease) in cash (*) (100.0) (160.0)
Net cash-opening balance (68.9) 24.7
Net cash-closing balance (168.8) (135.3)
Net increase (decrease) in cash (*) (100.0) (160.0)
(*) including discontinued activities
About BOURBON
With 7,700 pro fessionals and a fleet of 403 owned vessels and 116 units on
order, BOURBON is currently present in more than 30 countries.
BOURBON offers a wide range of 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 guarantees the highest standard of
quality service worldwide, under safe conditions.
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
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 patrick.mangaud@bourbon-online.com
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