Paris, February 9, 2017

BOURBON Annual & 4th Quarter 2016 Revenues

Adjusted revenues reached €1.1 billion in 2016, a decrease of 23.3% compared with 2015 in a strongly declining market

The decline in adjusted revenues was limited to 5.7% in the 4th quarter compared with previous quarter; adjusted revenues amounted to €244.4 million

  • Despite the reduction in investment by oil companies for the 2nd year in a row resulting in a sharp decline in activity, BOURBON recorded revenues of more than €1 billion.
  • 4th quarter revenues reflect a further reduction in activity in the Deep and Shallow offshore segments, a recovery of activity in Subsea and, to a lesser extent, the anticipated recovery in Crew boats.
  • To maximize the utilization rate and revenue of vessels in operation, BOURBON has maintained an active stacking policy. There were 104 vessels stacked, excluding Crew boats, as of December 31, 2016.
  Q4 2016 Q3 2016 Q2 2016 Q1 2016 2016 2015
Adjusted revenues (in € millions)Sequential change 244.4-5.7% 259.1-9.0% 284.7-9.5% 314.5   1,102.6-23.3% 1,437.1  
Average utilization rate (excl. Crew boats)Deepwater offshore vesselsShallow water offshore vesselsSubsea   52.1%60.5%44.6%63.3% 58.3%66.4%53.1%57.0% 64.5%69.7%62.5%56.0% 71.7%77.2%71.3%52.3% 61.6%68.4%57.9%57.1% 79.1%83.1%78.7%72.3%
Average daily rate (excl. Crew boats US$/j) 15,081 15,260 15,265 16,299 15,466 18,089

"The rise in oil prices and production limitation agreements are expected to have a favorable effect on oil companies' investments. However, the anticipated effect on offshore activity will be delayed in time, as new investments recovered initially in onshore operations", declared Jacques de Chateauvieux, Chairman and CEO of BOURBON Corporation.

 "In this context, BOURBON is strengthening the diversification of its service offerings and building on its network of local partners across the world. Beyond the "Stronger for longer" action plan, our teams are working on innovative solutions to meet the expectations of our customers who are changing their operations to adapt to an oil price under $60".

  2016 figures are unaudited   In € millions, unless otherwise noted Quarter Full Year
Q4 2016 Q4 2015 Var 2016/ 2015 Q3 2016 2016 2015 Var 2016/ 2015
Operational indicators              
Number of vessels (FTE)* 514.0 508.0 +1.2% 513.0 511.4 503.0 +1.7%
Number of vessels (end of period)** 514 511 +3 vessels 514 514 511 +3 vessels
Average utilization rate (%) 57.4% 72.1% -14.7 pts 59.7% 62.7% 75.5% -12.8 pts
Average daily rate (US$/day) 8,989 10,781 -16.6% 9,494 9,586 11,381 -15.8%

(*) FTE: Full Time Equivalent.(**) Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Adjusted Revenues (a)              
Marine Services 182.9 275.7 -33.6% 203.2 864.1 1,166.7 -25.9%
Deepwater offshore vessels 72.8 106.1 -31.4% 81.4 337.0 431.5 -21.9%
Shallow water offshore vessels 50.1 103.0 -51.3% 60.9 279.2 449.8 -37.9%
Crew boats 60.0 66.6 -9.8% 60.8 247.8 285.5 -13.2%
Subsea Services 56.4 53.3 +5.7% 50.0 217.2 252.3 -13.9%
Other 5.1 5.2 -2.0% 5.9 21.3 18.1 +17.9%
Total adjusted revenues(change at constant rates) 244.4 334.2   -26.9%-28.1% 259.1   1,102.6 1,437.1   -23.3%-23.2%
IFRS 11 impact*** (20.0) (26.1)   (19.4) (82.0) (107.5)  
Group TOTAL 224.4 308.1 -27.2% 239.7 1,020.6 1,329.6 -23.2%

(***) Effect of consolidation of jointly controlled companies using the equity method.

Average utilization rate (excl. Crew boats) 52.1% 76.7% -24.6 pts 58.3% 61.6% 79.1% -17.5 pts
Average daily rate (excl. Crew boats US$/d) 15,081 16,809 -10.3% 15,260 15,466 18,089 -14.5%

 (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. Adjusted comparative figures are restated accordingly.

MARINE SERVICES

  Quarter Full Year
Q4 2016 Q4 2015 Var 2016/ 2015 Q3 2016 2016 2015 Var 2016/ 2015
Adjusted Revenues (in € millions) 182.9 275.7 -33.6% 203.2 864.1 1,166.7 -25.9%
Number of vessels (end of period)* 491 488 +3 vessels 491 491 488 +3 vessels
Average utilization rate 57,1% 73.0% -15.9 pts 59.9% 62.9% 75.9% -13.0 pts

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Adjusted revenues continued to be affected by the challenging market conditions and by the decrease in demand in both Deepwater and Shallow water offshore. This was amplified by the over-capacity of vessels in both of these segments, thereby pulling daily rates downwards. However, the Crew boats segment continued to prove resilient.

Marine Services: Deepwater offshore vessels

  Quarter Full Year
Q4 2016 Q4 2015 Var 2016/ 2015 Q3 2016 2016 2015 Var 2016/ 2015
Adjusted Revenues (in € millions) 72.8 106.1 -31.4% 81.4 337.0 431.5 -21.9%
Number of vessels (end of period)* 89 88 +1 vessel 89 89 88 +1 vessel
Average utilization rate 60.5% 82.6% -22.1 pts 66.4% 68.4% 83.1% -14.7 pts
Average daily rate (US$/day) 15,526 18,360 -15.4% 16,492 16,524 19,804 -16.6%

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

The market conditions in Deepwater offshore (particularly the over-capacity of vessels given an ever-diminishing demand) have continued to impact daily rates and utilization rates over the 4th quarter 2016, leading to a drop in adjusted revenues. BOURBON has therefore decided to continue its proactive cost-reduction measures with up to 27 vessels stacked during the 4th quarter.

Marine Services: Shallow water offshore vessels

  Quarter Full Year
Q4 2016 Q4 2015 Var 2016/ 2015 Q3 2016 2016 2015 Var 2016/ 2015
Adjusted Revenues (in € millions) 50.1 103.0 -51.3% 60.9 279.2 449.8 -37.9%
Number of vessels (end of period)* 133 133 - 133 133 133 -
Average utilization rate 44.6% 76.5% -31.9 pts 53.1% 57.9% 78.7% -20.8 pts
Average daily rate (in US$/day) 9,958 12,205 -18.4% 10,365 10,848 13,137 -17.4%

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Revenues for the 4th quarter 2016 continued to experience the effects of a market lacking of new drilling or maintenance projects in this segment (-8.5 pts on utilization rates quarter on quarter). This affected all the regions in which BOURBON operates, and most particularly West Africa and Asia.BOURBON continued to adjust its costs to these market conditions over the quarter by stacking up to 73 vessels.

Marine Services: Crew boat vessels

    Quarter Full Year
Q4 2016 Q4 2015 Var 2016/ 2015 Q3 2016 2016 2015 Var 2016/ 2015
Adjusted Revenues (in € millions) 60.0 66.6 -9.8% 60.8 247.8 285.5 -13.2%
Number of vessels (end of period) 269 267 +2 vessels 269 269 267 +2 vessels
Average utilization rate 62.2% 68.0% -5.8 pts 61.1% 63.6% 72.3% -8.7 pts
Average daily rate (in US$/day) 4,359 4,530 -3.8% 4,473 4,394 4,697 -6.5%

Adjusted revenues for the Crew boats segment remained resilient in the 4th quarter 2016 compared with the previous quarter. Demand continued to grow for large Crew boats, which represent an economical alternative to helicopter transportation. Average utilization rates, although still well below 2015 rates, finally reached a plateau and showed a slight increase quarter on quarter (+1.1%).

Subsea Services

  Quarter Full Year
Q4 2016 Q4 2015 Var 2016/ 2015 Q3 2016 2015 2015 Var 2016/ 2015
Adjusted Revenues (in € millions) 56.4 53.3 +5.7% 50.0 217.2 252.3 -13.9%
Number of vessels (end of period)* 22 22 - 22 22 22 -
Average utilization rate 63.3% 54.0% +9.3 pts 57.0% 57.1% 65.8% -8.7 pts
Average daily rate (in US$/day) 35,195 47,232 -25.5% 37,182 38,624 48,365 -20.1%

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

The Subsea activity experienced a 6.3 points increase in its utilization rates compared with the previous quarter; this reflects customers' confidence in BOURBON's teams and in the vessels of the Bourbon Evolution 800 series, as well as in the fleet of ROVs. Revenues followed this trend despite flagging average daily rates.

BOURBON is pursuing its diversification strategy with its partners in its traditional regions of operation by expanding its range of activity: ROV construction support, diving, floatel and well stimulation.

 

Other

  Quarter Full Year
Q4 2016 Q4 2015 Var 2016/ 2015 Q3 2016 2016 2015 Var 2016/ 2015
Adjusted Revenues (in € millions) 5.1 5.2 -2.0% 5.9 21.3 18.1 +17.9%

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

2016 witnessed both a low point in oil prices, dropping down to $26 in January 2016 and a high point at the end of the year at $55. Growth in demand for oil and decisions by oil-producing countries to reduce the level of production could have a favorable impact on oil prices, thereby boosting investments.

2017 would in that case see a gradual recovery of maintenance activity on existing fields. Drilling is initially picking up onshore, with the prospect of a recovery in the offshore segment in late 2017 and 2018.

In this context, we expect to see continued progress in utilization rates in the Subsea and Crew boats segments. However, the Deepwater and Shallow water offshore segments will continue to experience the effects of the low point of the cycle in the first quarters of 2017.

BOURBON is therefore continuing its efforts to streamline operations, reduce costs and preserve cash, with the same objective of operational excellence.

ADDITIONAL INFORMATION

BOURBON's results will continue to be influenced by the €/US$ exchange rate.

FINANCIAL CALENDAR

2016 Annual Results press release and presentation March 16, 2017
2017 1st Quarter financial information press release May 4, 2017
Annual Shareholder's Meeting May 23, 2017

APPENDIX

Quarterly adjusted revenue breakdown

In millions of euros   2016   2015
  Q4 Q3 Q2 Q1   Q4 Q3 Q2 Q1
Marine Services   182.9 203.2 218.5 259.5   275.7 279.0 299.8 312.2
Deepwater offshore vessels   72.8 81.4 84.2 98.6   106.1 101.9 109.6 113.8
Shallow water offshore vessels   50.1 60.9 73.6 94.6   103.0 107.2 116.1 123.5
Crew boats   60.0 60.8 60.7 66.3   66.6 69.9 74.2 74.9
Subsea Services   56.4 50.0 60.9 50.0   53.3 61.0 70.9 67.1
Other   5.1 5.9 5.3 5.0   5.2 4.1 4.5 4.3
Total adjusted revenues   244.4 259.1 284.7 314.5   334.2 344.1 375.2 383.6
IFRS 11 impact*   (20.0) (19.4) (20.1) (22.5)   (26.1) (23.8) (30.1) (27.4)
TOTAL CONSOLIDATED   224.4 239.7 264.6 292.0   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
  Q4 Q3 Q2 Q1   Q4 Q3 Q2 Q1
Marine Services   57.1 59.9 64.5 70.3   73.0 74.1 77.4 79.2
Deepwater offshore  vessels   60.5 66.4 69.7 77.2   82.6 79.8 84.0 86.0
Shallow water offshore  vessels   44.6 53.1 62.5 71.3   76.5 75.5 78.3 84.5
Crew boats   62.2 61.1 63.8 67.5   68.0 71.5 75.0 74.4
Subsea Services   63.3 57.0 56.0 52.3   54.0 64.3 70.2 75.9
"Total fleet excluding Crew boats"   52.1 58.3 64.5 71.7   76.7 76.0 79.5 84.3
"Total fleet" average utilization rate   57.4 59.7 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
  Q4 Q3 Q2 Q1   Q4 Q3 Q2 Q1
Deepwater offshore vessels   15,526 16,492 16,537 17,630   18,360 19,518 20,286 21,942
Shallow water offshore vessels   9,958 10,365 10,712 11,967   12,205 12,880 13,507 13,882
Crew boats   4,359 4,473 4,405 4,538   4,530 4,632 4,732 4,934
Subsea Services   35,195 37,182 39,583 44,119   47,232 47,657 48,847 50,118
"Total fleet excluding Crew boats" average dailyrate   15,081 15,260 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
  Q4 Q3 Q2 Q1   Q4 Q3 Q2 Q1
Marine Services   491 491 490 492   488 484 483 479
Deepwater offshore  vessels   89 89 89 89   88 86 82 79
Shallow water offshore  vessels 133 133 133 133 133 134 138 138
Crew boats 269 269 268 270 267 264 263 262
Subsea Services   22 22 22 22   22 22 22 21
FLEET  TOTAL   513 513 512 514   510 506 505 500

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Quarterly deliveries of vessels

In number of vessels   2016   2015
  Q4 Q3 Q2 Q1   Q4 Q3 Q2 Q1
Marine Services   0 1 0 4   5 6 4 0
Deepwater offshore  vessels   0 0 0 1   2 4 3 0
Shallow water offshore  vessels 0 0 0 0 0 0 0 0
Crew boats 0 1 0 3 3 2 1 0
Subsea Services   0 0 0 0   0 0 1 0
FLEET  TOTAL   0 1 0 4   5 6 5 0

Yearly adjusted revenue breakdown

In millions of euros   Full Year
  2016 2015
Marine Services   864.1 1,166.7
Deepwater offshore  vessels   337.0 431.5
Shallow water offshore  vessels   279.2 449.8
Crew boats   247.8 285.5
Subsea Services   217.2 252.3
Other   21.3 18.1
Total adjusted revenues   1,102.6 1,437.1
IFRS 11 impact*   (82.0) (107.5)
TOTAL CONSOLIDATED   1,020.6 1,329.6

* Effect of consolidation of joint ventures using the equity method.

Yearly average utilization rates for the BOURBON offshore fleet

In %   Full Year
  2016 2015
Marine Services   62.9 75.9
Deepwater offshore  vessels   68.4 83.1
Shallow water offshore  vessels   57.9 78.7
Crew boats   63.6 72.3
Subsea Services   57.1 65.8
"Total fleet excluding Crew boats"   61.6 79.1
"Total fleet" average utilization rate   62.7 75.5

Yearly average daily rates for the BOURBON offshore fleet

In US$/day   Full Year
  2016 2015
Deepwater offshore vessels   16,524 19,804
Shallow water offshore vessels   10,848 13,137
Crew boats   4,394 4,697
Subsea Services   38,624 48,365
"Total fleet excluding Crew boats" average daily rate   15,466 18,089

Yearly deliveries of vessels

In number of vessels   Full Year
  2016 2015
Marine Services   5 15
Deepwater Offshore  vessels   1 9
Shallow water Offshore 0 0
Crew boats 4 6
Subsea Services   0 1
FLEET TOTAL   5 16

Breakdown of BOURBON adjusted revenues by geographical region

In millions of euros 4th Quarter Full Year
Q4 2016 Q4 2015 Change 2016 2015 Change
Africa 135.9 193.3 -29.7% 616.4 814.3 -24.3%
Europe & Mediterranean/Middle East 42.0 45.5 -7.6% 158.3 215.0 -26.4%
Americas 45.4 62.6 -27.4% 216.6 263.8 -17.9%
Asia 21.0 32.9 -36.2% 111.3 144.1 -22.8%

 

Other key indicators

Quarterly breakdown

    2016   2015
  Q4 Q3 Q2 Q1   Q4 Q3 Q2 Q1
Average €/US$ exchange rate for the quarter (in €)   1.08 1.12 1.13 1.10   1.10 1.11 1.11 1.13
€/US$ exchange rate at closing (in €)   1.05 1.12 1.11 1.14   1.09 1.12 1.12 1.08
Average price of Brent for the quarter (in US$/bbl)   49 46 46 34   44 50 62 54

Annual breakdown

    Full Year
  2016 2015
Average 12-month €/US$ exchange rate (in €)   1.11 1.11
€/US$ exchange rate at closing (in €)   1.05 1.09
Average 12-month price of Brent (in US$/bbl)   44 52

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 almost 9,500 skilled employees. Through its 37 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 2016, BOURBON'S revenue came to €1,102.6 million and the company operated a fleet of 514 vessels.

Placed by ICB (Industry Classification Benchmark) in the "Oil Services" sector, BOURBON is listed on the Euronext Paris, Compartment B.

Contacts

BOURBON Media relations agencyPublicis Consultants
Investor Relations, analysts, shareholders  Vilizara Lazarova
+33 140 138 607  +33 144 824 634 
investor-relations@bourbon-online.com vilizara.lazarova@consultants.publicis.fr
   
Corporate Communication  
Christelle Loisel  
+33 491 136 732  
christelle.loisel@bourbon-online.com  

 

     

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