PARIS, Aug. 3, 2016 (GLOBE NEWSWIRE) --
BOURBON 2nd Quarter and 1st Half 2016
Revenues
The impact of the oil market cycle reaching
its bottom is felt in BOURBON 1st Half 2016 adjusted revenues of
€599.2 million, a 21.0% decline year on year and 11.7% reduction
compared to 2nd half 2015 (both at current rates)
BOURBON is the most resilient OSV company in the
market and has been impacted, however less and later, by the deep
reduction in the level of activity of the oil companies following
the sharp and sudden reduction of the oil price. Therefore the
performance during 2016 is and will reflect the full impact of the
down cycle, as illustrated by the quarter on quarter reduction of
BOURBON adjusted revenues.
|
Q2 2016 |
Q1 2016 |
Q4 2015 |
Q3 2015 |
Q2 2015 |
Q1 2015 |
Adjusted Revenues (in € millions) Sequential change |
284.7 -9.5% |
314.5 -5.9% |
334.2 -2.9% |
344.1 -8.3% |
375.2 -2.2% |
383.6 |
Average utilization rate (excl. Crew boats) Deep Shallow Subsea
|
64.5% 69.7% 62.5% 56.0% |
71.7% 77.2% 71.3% 52.3% |
76.7% 82.6% 76.5% 54.0% |
76.0% 79.8% 75.5% 64.3% |
79.5% 84.0% 78.3% 70.2% |
84.3% 86.0% 84.5% 75.9% |
Average daily rate (excl. Crew boats US$/d) |
15,265 |
16,299 |
16,809 |
17,858 |
18,640 |
19,301 |
The evaluation of performances segment by
segment shows that:
- The bottom of the market in the Subsea segment was reached in
Q1 2016, and it is anticipated that the improvement in utilization
rates in the second quarter will continue in the quarters to
come
- The bottom of the market has been in Q2 2016 for the Crew boat
segment; reduced helicopter activity for cost savings purposes and
the increase of activity in production of existing fields are
expected to improve the use of crew boats going forward
- In the segments Deep and Shallow water, BOURBON anticipates the
bottom of the market in Q3 2016, due to the late cyclical nature of
this business.
With average utilization rates that for several
years remained around 8 to 12 points above most of its competitors,
BOURBON strongly benefits from the preference of customers for its
performances in safety, reliability and positive impacts on
customers' own costs. BOURBON also has a specific advantage in its
access to markets through long established local partnerships and
from the diversification of its revenues among the four different
segments of the market.
"More than ever, BOURBON is focusing on what the
teams control: safety, reliability, cost control and improved
efficiency to the customers benefit", says Jacques de
Chateauvieux, Chairman and Chief Executive Officer of BOURBON
Corporation . "While the world's largest oil field services
company thinks the crude oil market has bottomed, BOURBON is ready
to benefit in the first place from the market recovery when it will
materialize".
BOURBON anticipates the low point of adjusted
revenues in Q3 2016, with a possible improvement at the end of
2016.
BOURBON has continued its cash preservation
strategy with proactive stacking of vessels whenever appropriate.
At the end of June 2016, 67 supply vessels were stacked,
representing 27% of the supply fleet. Looking forward to full year
2016 adjusted revenues, BOURBON now anticipates a full year
adjusted revenue reduction in the order of magnitude experienced
year on year during the first semester and a slight decrease in
adjusted EBITDAR/revenues margin.
In € millions, unless otherwise
noted |
Quarter |
Half Year |
Q2 2016 |
Q2 2015 |
Var 2016/ 2015 |
Q1 2016 |
H1 2016 |
H1 2015 |
Var 2016/ 2015 |
Operational indicators |
|
|
|
|
|
|
|
Number of vessels (FTE)* |
511.2 |
501.2 |
+2.0% |
511.4 |
511.3 |
500.6 |
+2.1% |
Number of vessels (end of period)** |
513 |
506 |
+7
vessels |
515 |
513 |
506 |
+7
vessels |
Average utilization rate (%) |
64.2% |
77.1% |
-12.9
pts |
69.5% |
66.8% |
78.1% |
-11.3
pts |
Average daily rate (US$/day) |
9,627 |
11,558 |
-16.7% |
10,324 |
9,961 |
11,885 |
-16.2% |
(*) FTE: Full Time Equivalent. (**) Vessels
operated by BOURBON (including vessels owned or on bareboat
charter).
Adjusted Revenues (a) |
|
|
|
|
|
|
|
Marine Services |
218.5 |
299.8 |
-27.1% |
259.5 |
478.0 |
612.0 |
-21.9% |
Deepwater offshore vessels |
84.2 |
109.6 |
-23.2% |
98.6 |
182.8 |
223.4 |
-18.2% |
Shallow water offshore vessels |
73.6 |
116.1 |
-36.6% |
94.6 |
168.2 |
239.6 |
-29.8% |
Crew boats |
60.7 |
74.2 |
-18.2% |
66.3 |
127.0 |
149.1 |
-14.8% |
Subsea Services |
60.9 |
70.9 |
-14.1% |
50.0 |
110.8 |
138.0 |
-19.7% |
Other |
5.3 |
4.5 |
+19.1% |
5.0 |
10.4 |
8.8 |
+17.5% |
Total adjusted revenues (change at constant rates) |
284.7 |
375.2 |
-24.1% -20.7% |
314.5 |
599.2 |
758.8 |
-21.0% -19.6% |
IFRS 11 impact*** |
(20.1) |
(30.1) |
n/s |
(22.5) |
(42.6) |
(57.5) |
n/s |
Group TOTAL |
264.6 |
345.1 |
-23.3% |
292.0 |
556.6 |
701.3 |
-20.6% |
(***) Effect of consolidation of jointly
controlled companies using the equity method.
Average utilization rate (excl. Crew boats) |
64.5% |
79.5% |
-15.0 pts |
71.7% |
68.1% |
81.9% |
-13.8 pts |
Average daily rate (excl. Crew boats US$/d) |
15,265 |
18,640 |
-18.1% |
16,299 |
15,741 |
19,012 |
-17.2% |
(a) Adjusted data: The adjusted financial
information is presented by Activity and by Segment based on the
internal reporting system and shows internal segment information
used by the principal operating decision maker to manage and
measure the performance of BOURBON (IFRS 8). As of January 1, 2015,
the internal reporting (and thus the adjusted financial
information) records the performance of operational joint ventures
on which the group has joint control using the full integration
method.
MARINE SERVICES
|
Quarter |
Half Year |
Q2 2016 |
Q2 2015 |
Var 2016/ 2015 |
Q1 2016 |
H1 2016 |
H1 2015 |
Var 2016/ 2015 |
Adjusted Revenues (in € millions) |
218.5 |
299.8 |
-27.1% |
259,5 |
478.0 |
612.0 |
-21.9% |
Number of vessels (end of period)* |
490 |
483 |
+7 vessels |
492 |
490 |
483 |
+7 vessels |
Average utilization rate |
64.5% |
77.4% |
-12.9 pts |
70.3% |
67.4% |
78.3% |
-10.9 pts |
* Vessels operated by BOURBON (including vessels
owned or on bareboat charter).
Adjusted revenues decreased in all segments in
the 1st half 2016 as market conditions continued to decline. This
is reflected in the 10.9 point decline in the average utilization
rate compared to the year ago period. The small increase in the
fleet does not compensate for the reduction in average daily rates
and average utilization rates.
Marine Services: Deepwater offshore
vessels
|
Quarter |
Half Year |
Q2 2016 |
Q2 2015 |
Var 2016/ 2015 |
Q1 2016 |
H1 2016 |
H1 2015 |
Var 2016/ 2015 |
Adjusted Revenues (in € millions) |
84.2 |
109.6 |
-23.2% |
98.6 |
182.8 |
223.4 |
-18.2% |
Number of vessels (end of period)* |
89 |
82 |
+7 vessels |
89 |
89 |
82 |
+7 vessels |
Average utilization rate |
69.7% |
84.0% |
-14.3 pts |
77.2% |
73.4% |
84.9% |
-11.5 pts |
Average daily rate (US$/day) |
16,537 |
20,286 |
-18.5% |
17,630 |
17,114 |
21,097 |
-18.9% |
* Vessels operated by BOURBON (including vessels
owned or on bareboat charter).
Upon entry into the fleet, the Bourbon Arctic
has earned praise from clients for safety, cost effectiveness and
reliability and is currently on charter into the 4th quarter of
this year. Overall, global market conditions continue to put
downward pressure on the average daily rate and the average
utilization rate. Almost half of BOURBON's deepwater fleet is
located in West Africa, where average utilization rates for the 1st
half 2016 remained stable compared with the year ago period and
sequentially. Up to 17 vessels were stacked in Q2.
Marine Services: Shallow water offshore
vessels
|
Quarter |
Half Year |
Q2 2016 |
Q2 2015 |
Var 2016/ 2015 |
Q1 2016 |
H1 2016 |
H1 2015 |
Var 2016/ 2015 |
Adjusted Revenues (in € millions) |
73.6 |
116.1 |
-36.6% |
94.6 |
168.2 |
239.6 |
-29.8% |
Number of vessels (end of period)* |
133 |
138 |
-5 vessels |
133 |
133 |
138 |
-5 vessels |
Average utilization rate |
62.5% |
78.3% |
-15.8 pts |
71.3% |
66.9% |
81.4% |
-14.5 pts |
Average daily rate (in US$/day) |
10,712 |
13,507 |
-20.7% |
11,967 |
11,289 |
13,732 |
-17.8% |
* Vessels operated by BOURBON
(including vessels owned or on bareboat charter).
Adjusted revenues in the 1st half 2016 declined
significantly due to market forces having a proportionally greater
impact on the shallow water market compared with the deepwater
market, with the most significant decline being seen in West
Africa. BOURBON therefore chose to take further proactive cost
reduction measures by stacking additional vessels. Up to 46 vessels
were stacked in the 2nd quarter of this year.
Marine Services: Crew boat vessels
|
Quarter |
Half Year |
Q2 2016 |
Q2 2015 |
Var 2016/ 2015 |
Q1 2016 |
H1 2016 |
H1 2015 |
Var 2016/ 2015 |
Adjusted Revenues (in € millions) |
60.7 |
74.2 |
-18.2% |
66.3 |
127.0 |
149.1 |
-14.8% |
Number of vessels (end of period) |
268 |
263 |
+5 vessels |
270 |
268 |
263 |
+5 vessels |
Average utilization rate |
63.8% |
75.0% |
-11.2 pts |
67.5% |
65.6% |
74.7% |
-9.1 pts |
Average daily rate (in US$/day) |
4,405 |
4,732 |
-6.9% |
4,538 |
4,478 |
4,837 |
-7.4% |
The Crew boat segment remains the most resilient
among the Marine Services segments due to it being a cost effective
alternative to the use of helicopters. 1st half 2016 adjusted
revenues declined versus the prior year reflecting the difficult
conditions faced in the market. The larger impact of the market
downturn was on the FSIVs with average utilization rates declining
more for these vessels than for the smaller crew boats in the
fleet.
Subsea Services
|
Quarter |
Half Year |
Q2 2016 |
Q2 2015 |
Var 2016/ 2015 |
Q1 2016 |
H1 2016 |
H1 2015 |
Var 2016/ 2015 |
Adjusted Revenues (in € millions) |
60.9 |
70.9 |
-14.1% |
50.0 |
110.8 |
138.0 |
-19.7% |
Number of vessels (end of period)* |
22 |
22 |
No change |
22 |
22 |
22 |
No change |
Average utilization rate |
56.0% |
70.2% |
-14.2 pts |
52.3% |
54.1% |
73.1% |
-19.0 pts |
Average daily rate (in US$/day) |
39,583 |
48,847 |
-19.0% |
44,119 |
41,501 |
49,718 |
-16.5% |
* Vessels operated by BOURBON (including vessels
owned or on bareboat charter).
Lower adjusted revenues compared with the prior
year are due to the market conditions and their effect upon the
average daily rate and average utilization rate. There were up to 8
Subsea vessels stacked during the 2nd quarter 2016, having a
significant negative impact on the average utilization rate
compared with the year ago period. There were fewer stacked vessels
than in the prior quarter and this helps explain the slight
increase in the average utilization rate and higher adjusted
revenues compared with the prior quarter.
Other
|
Quarter |
Half Year |
Q2 2016 |
Q2 2015 |
Var 2016/ 2015 |
Q1 2016 |
H1 2016 |
H1 2015 |
Var 2016/ 2015 |
Adjusted Revenues (in € millions) |
5.3 |
4.5 |
+19.1% |
5.0 |
10.4 |
8.8 |
+17.5% |
Activities included are those that do not fit
into either Marine Services or Subsea Services. Making up the
majority of the total are earnings from such items as miscellaneous
ship management activities, logistics as well as from the cement
carrier Endeavor.
OUTLOOK
The largest oil & gas companies' CEO's
express the view that even if the harsh downturn is not yet over,
there are some signs of improvement. The drastic reduction of the
level of investments of oil & gas companies over the past
couple years has resulted in persistently low prices and a large
oversupply of vessels in the offshore services market. Rather than
to focus on additional cost cutting campaigns, clients are now
thinking of the future. While recovery will take slightly more time
to impact the offshore service vessel industry due to its late
cyclical nature, this provides some optimism in the industry.
ADDITIONAL INFORMATION
- BOURBON's results will continue to be influenced by the €/US$
exchange rate
FINANCIAL CALENDAR
2016 1st Half Results press
release |
September 8, 2016 |
2016 3rd
Quarter financial information press release |
November
3, 2016 |
APPENDIX
Quarterly adjusted revenue breakdown
In € millions |
|
2016 |
|
2015 |
|
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Marine Services |
|
218.5 |
259.5 |
|
275.7 |
279.0 |
299.8 |
312.2 |
Deepwater offshore vessels |
|
84.2 |
98.6 |
|
106.1 |
101.9 |
109.6 |
113.8 |
Shallow water offshore vessels |
|
73.6 |
94.6 |
|
103.0 |
107.2 |
116.1 |
123.5 |
Crew boats |
|
60.7 |
66.3 |
|
66.6 |
69.9 |
74.2 |
74.9 |
Subsea Services |
|
60.9 |
50.0 |
|
53.3 |
61.0 |
70.9 |
67.1 |
Other |
|
5.3 |
5.0 |
|
5.2 |
4.1 |
4.5 |
4.3 |
Total adjusted revenues |
|
284.7 |
314.5 |
|
334.2 |
344.1 |
375.2 |
383.6 |
IFRS 11 impact* |
|
(20.1) |
(22.5) |
|
(26.1) |
(23.8) |
(30.1) |
(27.4) |
TOTAL CONSOLIDATED |
|
264.6 |
292.0 |
|
308.1 |
320.2 |
345.1 |
356.3 |
* Effect of consolidation of joint ventures
using the equity method.
Quarterly average utilization rates for the
BOURBON offshore fleet
In % |
|
2016 |
|
2015 |
|
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Marine Services |
|
64.5 |
70.3 |
|
73.0 |
74.1 |
77.4 |
79.2 |
Deepwater offshore vessels |
|
69.7 |
77.2 |
|
82.6 |
79.8 |
84.0 |
86.0 |
Shallow water offshore vessels |
|
62.5 |
71.3 |
|
76.5 |
75.5 |
78.3 |
84.5 |
Crew boats |
|
63.8 |
67.5 |
|
68.0 |
71.5 |
75.0 |
74.4 |
Subsea Services |
|
56.0 |
52.3 |
|
54.0 |
64.3 |
70.2 |
75.9 |
"Total fleet excluding Crewboats" |
|
64.5 |
71.7 |
|
76.7 |
76.0 |
79.5 |
84.3 |
"Total fleet" average utilization rate |
|
64.2 |
69.5 |
|
72.1 |
73.7 |
77.1 |
79.1 |
Quarterly average daily rates for the BOURBON
offshore fleet
In US$/day |
|
2016 |
|
2015 |
|
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Deepwater offshore vessels |
|
16,537 |
17,630 |
|
18,360 |
19,518 |
20,286 |
21,942 |
Shallow water offshore vessels |
|
10,712 |
11,967 |
|
12,205 |
12,880 |
13,507 |
13,882 |
Crew boats |
|
4,405 |
4,538 |
|
4,530 |
4,632 |
4,732 |
4,934 |
Subsea Services |
|
39,583 |
44,119 |
|
47,232 |
47,657 |
48,847 |
50,118 |
"Total fleet excluding Crewboats" average daily
rate |
|
15,265 |
16,299 |
|
16,809 |
17,858 |
18,640 |
19,301 |
Quarterly number of vessels (end of
period)
In number of vessels* |
|
2016 |
|
2015 |
|
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Marine Services |
|
490 |
492 |
|
488 |
484 |
483 |
479 |
Deepwater offshore vessels |
|
89 |
89 |
|
88 |
86 |
82 |
79 |
Shallow water offshore vessels |
133 |
133 |
133 |
134 |
138 |
138 |
Crew boats |
268 |
270 |
267 |
264 |
263 |
262 |
Subsea Services |
|
22 |
22 |
|
22 |
22 |
22 |
21 |
FLEET TOTAL |
|
512 |
514 |
|
510 |
506 |
505 |
500 |
* Vessels operated by BOURBON (including vessels
owner or on bareboat charter).
Quarterly deliveries of vessels
In number of vessels |
|
2016 |
|
2015 |
|
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Marine Services |
|
0 |
4 |
|
5 |
6 |
4 |
0 |
Deepwater offshore vessels |
|
0 |
1 |
|
2 |
4 |
3 |
0 |
Shallow water offshore vessels |
0 |
0 |
0 |
0 |
0 |
0 |
Crew boats |
0 |
3 |
3 |
2 |
1 |
0 |
Subsea Services |
|
0 |
0 |
|
0 |
0 |
1 |
0 |
FLEET TOTAL |
|
0 |
4 |
|
5 |
6 |
5 |
0 |
Half Year adjusted revenue breakdown
In € millions |
|
2016 H1 |
|
2015 |
|
|
H2 |
H1 |
Marine Services |
|
478.0 |
|
554.7 |
612.0 |
Deepwater offshore vessels |
|
182.8 |
|
208.1 |
223.4 |
Shallow water offshore vessels |
|
168.2 |
|
210.2 |
239.6 |
Crew boats |
|
127.0 |
|
136.4 |
149.1 |
Subsea Services |
|
110.8 |
|
114.3 |
138.0 |
Other |
|
10.4 |
|
9.3 |
8.8 |
Total adjusted revenues |
|
599.2 |
|
678.3 |
758.8 |
IFRS 11 impact* |
|
(42.6) |
|
(50.0) |
(57.5) |
TOTAL CONSOLIDATED |
|
556.6 |
|
628.3 |
701.3 |
* Effect of consolidation of joint ventures
using the equity method.
Half Year average utilization rates for the
BOURBON offshore fleet
In % |
|
2016 H1 |
|
2015 |
|
|
H2 |
H1 |
Marine Services |
|
67.4 |
|
73.6 |
78.3 |
Deepwater offshore vessels |
|
73.4 |
|
81.4 |
84.9 |
Shallow water offshore vessels |
|
66.9 |
|
76.0 |
81.4 |
Crew boats |
|
65.6 |
|
69.9 |
74.7 |
Subsea Services |
|
54.1 |
|
59.0 |
73.1 |
"Total fleet excluding Crewboats" |
|
68.1 |
|
76.4 |
81.9 |
"Total fleet" average utilization rate |
|
66.8 |
|
73.0 |
78.1 |
Half Year average daily rates for the BOURBON
offshore fleet
In US$/day |
|
2016 H1 |
|
2015 |
|
|
H2 |
H1 |
Deepwater offshore vessels |
|
17,114 |
|
18,718 |
21,097 |
Shallow water offshore vessels |
|
11,289 |
|
12,507 |
13,732 |
Crew boats |
|
4,478 |
|
4,579 |
4,837 |
Subsea Services |
|
41,501 |
|
47,459 |
49,718 |
"Total fleet excluding Crewboats" average daily rate |
|
15,741 |
|
17,237 |
19,012 |
Half Year deliveries of vessels
In number of vessels |
|
2016 H1 |
|
2015 |
|
|
H2 |
H1 |
Marine Services |
|
4 |
|
11 |
4 |
Deepwater Offshore vessels |
|
1 |
|
6 |
3 |
Shallow water Offshore |
0 |
0 |
0 |
Crew boats |
3 |
5 |
1 |
Subsea Services |
|
0 |
|
0 |
1 |
FLEET TOTAL |
|
4 |
|
11 |
5 |
Breakdown of BOURBON adjusted revenues by
geographical region
In € millions |
Second quarter |
First half |
Q2 2016 |
Q2 2015 |
Change |
H1 2016 |
H1 2015 |
Change |
Africa |
162.9 |
212.5 |
-23.3% |
349.5 |
432.3 |
-19.2% |
Europe & Mediterranean/Middle East |
36.9 |
57.2 |
-35.4% |
70.6 |
116.3 |
-39.3% |
Americas |
51.9 |
68.9 |
-24.7% |
118.3 |
133.1 |
-11.2% |
Asia |
32.9 |
36.6 |
-10.0% |
60.8 |
77.1 |
-21.2% |
Breakdown of BOURBON adjusted revenues by
geographical region
|
|
2016 |
|
2015 |
In €
millions |
|
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Africa |
|
162.9 |
186.5 |
|
193.3 |
188.7 |
212.5 |
219.8 |
Europe & Mediterranean/Middle East |
|
36.9 |
33.7 |
|
45.5 |
53.2 |
57.2 |
59.1 |
Americas |
|
51.9 |
66.4 |
|
62.6 |
68.1 |
68.9 |
64.2 |
Asia |
|
32.9 |
27.8 |
|
32.9 |
34.1 |
36.6 |
40.5 |
Other key indicators
Quarterly breakdown
|
|
2016 |
|
2015 |
|
|
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Average €/US$ exchange rate for the quarter (in €) |
|
1.13 |
1.10 |
|
1.10 |
1.11 |
1.11 |
1.13 |
€/US$ exchange rate at closing (in €) |
|
1.11 |
1.14 |
|
1.09 |
1.12 |
1.12 |
1.08 |
Average price of Brent for the quarter (in US$/bbl) |
|
46 |
34 |
|
44 |
50 |
62 |
54 |
Half-yearly breakdown
|
|
2016 H1 |
|
2015 |
|
|
|
H2 |
H1 |
Average €/US$ exchange rate for the half year (in €) |
|
1.12 |
|
1.11 |
1.12 |
€/US$ exchange rate at closing (in €) |
|
1.11 |
|
1.11 |
1.12 |
Average price of Brent for the half year (in US$/bbl) |
|
40 |
|
47 |
58 |
About BOURBON
Among the market leaders in marine services for
offshore oil & gas, BOURBON offers the most demanding oil &
gas companies a wide range of marine services, both surface and
sub-surface, for offshore oil & gas fields and wind farms.
These extensive services rely on a broad range of the
latest-generation vessels and the expertise of more than 11,000
skilled employees. Through its 34 operating subsidiaries the group
provides local services as close as possible to customers and their
operations throughout the world, of the highest standards of
service and safety.
BOURBON provides two operating Activities
(Marine Services and Subsea Services) and also protects the French
coastline for the French Navy.
In 2015, BOURBON'S revenue came to €1,329.6
million and as of June 30, 2016, the company operated a fleet of
513 vessels.
Placed by ICB (Industry Classification
Benchmark) in the "Oil Services" sector, BOURBON is listed on the
Euronext Paris, Compartment B.
Contacts
BOURBON
Investor Relations, analysts, shareholders
James Fraser, CFA +33 491 133 545
james.fraser@bourbon-online.com
Corporate Communications Christelle Loisel
+33 491 136 732
christelle.loisel@bourbon-online.com
Media relations agency Publicis
Consultants
Vilizara Lazarova +33 144 824 634
vilizara.lazarova@consultants.publicis.fr
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