BOURBON (EPA:GBB) BOURBON - 3rd quarter 2010 financial information

Transparency directive : regulatory news

09/11/2010 07:00

Paris, November 9, 2010

                     BOURBON quarterly financial information

             Offshore activity grows for second consecutive quarter

BOURBON revenues Q3 2010 vs Q3 2009: +6.4%
Revenues from directly-owned vessels Q3 2010 vs Q3 2009: +11.9%

"In a market environment that continues to be difficult, BOURBON can today
report third-quarter 2010 revenue growth of 6.4%. This confirms the upturn in
our Offshore activity, announced previously and already in evidence in the
second quarter. It also confirms our strategic choices and reflects our unique
positioning on the market. Our clients are enthusiastic about the new BOURBON
vessels which are proving to be more innovative, safer and capable of keeping
their operating costs down," said Jacques de Chateauvieux, Chairman & Chief
Executive Officer of BOURBON.
"BOURBON predicted a gradual recovery in the oil companies' activity in the
second half of 2010 and more substantial growth in 2011. The activity of the
third quarter confirms this trend. In this context and in line with the Group's
policy of refocusing on offshore, the women and men of BOURBON are united in
their efforts to implement the BOURBON 2015 strategic plan, synonymous with
creation of value."

                                   BOURBON scope
In view of the proposed disposal of its Bulk transport operator activity,
announced on October 19, 2010, and pursuant to IFRS, the financial data related
to the Bulk Division have been reclassified as "Income from activities held for
sale", and revenues from the cement carrier will now appear under "Others". This
itemization is taken into account in the quarterly financial information.
Furthermore, it should be noted that the financial data related to the sugar
operations in Vietnam have also been reclassified as "income from activities
held for sale". The figures for 2009 have consequently been restated.

THIRD QUARTER 2010 REVENUES

                          Third quarter                  9 months
(in millions of euros)
                      Q3 2010  Q3 2009 Change at 9M 2010  9M 2009  Change at
                                        current                     current
                                        exchange                    exchange
                                         rates                       rates
Offshore                221.0    207.6   +6.5%     624.9    615.3     +1.6%
Of which Marine
Services                175.7    167.5   +4.9%     500.2    505.7     -1.1%
Of which Subsea
Services                 45.4     40.1  +13.1%     124.7    109.6    +13.8%
Others                    1.2      1.2    n/a        3.7      1.5      n/a
BOURBON TOTAL           222.2    208.9   +6.4%     628.6    616.8     +1.9%

Change at
constant
exchange
rates
+0.9%

+1.2%

BOURBON third quarter revenues came to 222.2 million euros, up 6.4% compared
with the same period in 2009 (2% at constant exchange rates).

Revenues are up 2.8% compared with the previous quarter.

In the first nine months, BOURBON posted revenue growth of 1.9% (1.2% at
constant exchange rates) against the same period in 2009.

OFFSHORE REVENUES

                          Third quarter                  9 months
(in millions of euros)
                      Q3 2010  Q3 2009 Change %  9M 2010  9M 2009  Change %
Marine Services         175.7    167.5  +4.9%      500.2    505.7   -1.1%
Subsea Services          45.4     40.1 +13.1%      124.7    109.6  +13.8%
OFFSHORE TOTAL          221.0    207.6  +6.5%      624.9    615.3   +1.6%
Of which :
   BOURBON vessels      215.5    192.5 +11.9%      602.8    556.3   +8.4%
   Chartered vessels      5.6     15.1 -63.1%       22.1     58.9  -62.5%

                                2010                    2009
(in millions of euros)    Q3     Q2     Q1     Q4     Q3    Q2     Q1
Marine Services         175.7  171.2  153.3   155.7 167.5 171.6  166.7
Subsea Services          45.4   43.7   35.6    38.9  40.1  34.1   35.3
OFFSHORE TOTAL          221.0  214.9  189.0   194.6 207.6 205.7  202.0
Of which :
   BOURBON vessels      215.5  207.0  180.3   183.0 192.5 184.5  179.3
   Chartered vessels      5.6    7.9    8.6    11.6  15.1  21.2   22.7

                          Third quarter                  9 months
(in millions of euros)
                      Q3 2010  Q3 2009 Change %  9M 2010  9M 2009  Change %
Offshore                221.0   207.6   +6.5%     624.9    615.3    +1.6%
          Africa        146.1   134.8   +8.4%     404.1    405.9    -0.5%
Europe & Mediterranean/
            Middle-East  33.9    37.1   -8.4%      95.1    102.9    -7.6%
     American Continent  24.5    14.2  +72.5%      69.0     41.1   +67.9%
                   Asia  16.6    21.6  -23.3%      56.7     65.3   -13.2%

Offshore

Two quarters of revenue growth for BOURBON vessels have now been recorded,
following two quarters of decline (Q4 2009 and Q1 2010).

Compared with the third quarter of 2009, the 6.5% increase in revenues for the
third quarter of 2010 reflects the following contrasting factors:
  - deterioration of market conditions;
  - an 11.9% increase in revenues from BOURBON vessels
    (Q3 2010 compared with Q3 2009);
  - the commissioning of 69 new vessels (including 28 Bourbon Liberty) over the
    last twelve months;
  - a more favorable EUR/$ exchange rate.

In the first nine months of 2010, revenues totalled 624.9 million euros, up 1.6%
compared with the same period in the previous year. Revenues from BOURBON
vessels were 8.4% higher thanks to the major expansion of the fleet in
unfavorable market conditions. Revenues from chartered vessels were down by
nearly 37 million euros.
Activity on the American continent is expanding and BOURBON earned 11% of its
revenues there in the first nine months of 2010, compared with 6.6% over the
same period in 2009. As well as growth in activity in Mexico and Brazil, the
buyout of 50% of Delba Maritima Navegação at the end of 2009 also made a
significant contribution.

Compared with the second quarter of 2010, revenues from BOURBON vessels
increased by 4.1% despite a slight reduction in the fleet's utilization rate,
largely due to administrative difficulties encountered on importing the vessels
to Brazil.

The delay in implementing the contracts for the 8 Bourbon Liberty vessels and 5
crewboats chartered by Petrobras resulted from a disagreement between the
Brazilian Ministries of Finance and Petroleum concerning exemptions from import
duty for foreign vessels.

It should be noted that for the last seven quarters, BOURBON has been steadily
reducing the number of vessels chartered.

Marine Services

Compared with the third quarter of 2009, revenues from Marine Services in the
third quarter were up 4.9% at 175.7 million euros. This is due to the expansion
of the BOURBON fleet and the stronger dollar; and (ii) to less recourse to
chartering in accordance with the Group's strategy and the detrimental market
conditions.
In the first nine months of 2010, Marine Services revenues came to 500.2 million
euros, down 1.1% compared with the same period of 2009. This is due to the sharp
reduction in chartering (-84.7%), with however revenues from BOURBON vessels
increasing 7% thanks to the fleet's expansion even though the market continued
to be unfavorable.

Compared with the second quarter of 2010, revenues from Marine Services were up
2.6% due to the commissioning of new vessels in the fleet and contract renewals
in a market that continued to be difficult.

Subsea Services

Compared with the third quarter of 2009, revenues from Subsea Services were up
13.1% totalling 45.4 million euros, largely due to better performance of owned
vessels and the full effect of the IMR vessel commissioned at the beginning of
2010.

In the first nine months of 2010, revenues from Subsea Services were up 13.8% at
124.7 million euros compared with the same period of 2009, due to the BOURBON
vessels' improved performance (contract renewals at higher rates and a greater
range of services) and the full effect of the IMR vessel that joined the fleet
at the beginning of 2010.

Compared with the second quarter of 2010, revenues from Subsea Services were up
3.9% reflecting the significant improvement in BOURBON IMR vessels.

INDICATORS FOR THE OFFSHORE ACTIVITY

Generally, the quarter saw a progressive upturn in activity, particularly in
West Africa and Brazil. However, oversupply of vessels kept up the pressure on
daily rates but at the same time was favorable for the replacement of old
vessels with modern vessels.

- Quarterly commissioning of Offshore vessels

                                         2010                    2009
(in number of BOURBON vessels)    Q3     Q2     Q1     Q4     Q3    Q2     T1
Supply Total                      8       9      9      9     6     8      5
          Marine Services         7       9      8      9     6     7      5
          Subsea Services         1       0      1      0     0     1      0
Crewboats Total                   8       9      6     11     7    11     14
OFFSHORE FLEET TOTAL             16      18     15     20    13    19     19

The delivery of new vessels continued at regular intervals, matching the pace of
the previous three quarters.

- Utilization rate of the Offshore fleet

                                 2010                    2009
in %                       Q3     Q2     Q1     Q4     Q3    Q2     Q1
Average utilization rate   79.2   81.0   78.1   78.3   82.7  84.7   88.3
IMR vessels                91.5   89.8   80.9   90.4   88.9  88.6   84.5
Deepwater supply vessels   90.4   92.1   89.4   91.4   94.5  92.6   93.6
Continental supply vessels 71.0   75.4   72.4   80.6   79.6  86.6   92.4
Crewboats                  77.4   78.6   75.9   73.2   79.6  81.7   86.0

In the third quarter of 2010, the fleet's average utilization rate remained high
at 79.2%.

Excluding the Brazilian vessels, the average utilization rate for the fleet at
81.6% in the third quarter of 2010 was slightly higher than in the previous
quarter.
In the continental supply vessels segment, the utilization rate excluding the
Brazilian vessels was very slightly up at 75.6%.

- OUTLOOK

Activity on the offshore market would benefit from an upturn in oil companies'
capital investments, both in exploration and in production and maintenance. This
recovery is already noticeable in Asia, in a context of overcapacity, and in
West Africa.

More rigorous demands from clients in terms of safety and the efficiency of
offshore services vessels should further reinforce their preference for the most
modern fleets rather than older vessels, especially in continental offshore. In
this context, the average utilization rate for the BOURBON fleet should steadily
improve.

In addition, the economic activity of emerging countries and maintenance of oil
prices at current levels should support capital expenditures and hence future
demand for vessels.

- OPERATIONS AND MAJOR HIGHLIGHTS

On October 19, 2010, BOURBON signed a letter of intent for the disposal of its
bulk freight operator activity. Under this disposal, BOURBON will retain full
ownership of the cement carrier Endeavor, which it will operate under a service
contract with the purchaser.

Regarding the last 3 stock options plans issued by BOURBON (of which options may
be exercised as of December 2011, December 2012 and September 2013
respectively), BOURBON's Board of Directors has decided to modify the stock
purchase options plans into stock subscriptions plans. As a consequence BOURBON
will issue up to 3,200,000 shares over the 2011-2015 period.

- FINANCIAL CALENDAR

- Fourth quarter and full-year 2010 financial information  February 9, 2011
- Presentation of 2010 annual results                        March 16, 2011

- APPENDIX


      - BOURBON QUATERLY DATA

                               2010                    2009
(in millions of euros)    Q3     Q2     Q1     Q4     Q3    Q2     Q1
Offshore                218.0  214.9  189.0  194.6  207.6  205.7  202.0
Others                    1.1    1.2    1.3    1.4    1.2    0.2    0.1
BOURBON TOTAL           219.1  216.1  190.2  196.0  208.9  205.9  202.1

          - KEY INDICATORS

                                       2010                    2009
(in millions of euros)           Q3     Q2     Q1     Q4     Q3    Q2     Q1
Average EUR/$ exchange rate for
the quarter (in EUR)              1.29   1.27   1.38   1.48   1.43  1.36  1.30
Exchange rate at closing
(in EUR)                          1.36   1.23   1.35   1.44   1.46  1.41  1.33
Average Brent price for the
quarter (in $/bl)                 77     78     76     73     67    59    45

Average euro/dollar parity was $1.31 in the first nine months of 2010, compared
with $1.37 for the first nine months of 2009.

The average price of Brent was $77 for the first nine months of 2010, compared
with $55 for the first nine months of 2009.

A propos de BOURBON
BOURBON offers a broad range of deepwater and continental 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 will
guarantee the highest standard of quality service worldwide, under completely
safe conditions.
BOURBON also 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
Vilizara Lazarova +33(0)1 57 32 86 46
vilizara.lazarova@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

               All information on www.bourbon-online.com

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BOURBON (EPA:GBB) BOURBON - 3rd quarter 2010 financial information

Transparency directive : regulatory news

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