Paris, August 3, 2016
BOURBON 2
nd Quarter and
1
st 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
2
nd 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
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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The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: BOURBON via Globenewswire
HUG#2032648