Paris, March 4, 2015
BOURBON Full Year 2014: Robust
performance driven by good cost control in a challenging
environment
-
Adjusted EBITDAR increased 10.9% for the year
versus 2013, benefiting from continued strong cost control during
the year and its margin, as a percentage of revenues, increased
almost 2 full points to 36.1%
-
EBIT decreased 54% compared with 2013,
reflecting higher bareboat charter costs, less capital gains and
provisions made for classification dry dock costs for vessels on
bareboat charter
-
Net Income, Group share aided by an improved
financial profit, reflects a stronger US dollar towards the end of
2014 and a reduced cost of debt versus 2013
-
Free cash flow reached €466.1 million, a 5.2%
increase over 2013, including vessel sales, enabling the continued
reduction in net debt to €1.349 billion, totaling €802 million
reduction since June 30, 2013
-
Proposed dividend payment of €1.00 per share to
shareholders, stable versus 2013
|
H2 2014 |
H2
2013
(restated) |
Var H2 2014
/ H2 2013 |
H1
2014 |
2014 |
2013
(restated) |
Var 2014
/ 2013 |
|
|
|
|
|
|
|
|
Operational indicators |
|
|
|
|
|
|
|
Number of
vessels (FTE)* |
496.7 |
476.1 |
+4.3% |
487.9 |
492.2 |
468.2 |
+5.1% |
Number of
vessels (end of period)** |
505 |
485 |
+20 vessels |
501 |
505 |
485 |
+20
vessels |
Technical
availability rate (%) |
95.8% |
95.5% |
+0.3 pt |
95.2% |
95.5% |
94.5% |
+1.0
pt |
Average
utilization rate (%) |
80.5% |
83.2% |
-2.7 pts |
81.5% |
81.0 |
83.3 |
-2.3
pts |
Average
daily rate $/d |
12,442 |
11,901 |
+4.5% |
12,207 |
12,254 |
11,754 |
+4.3% |
|
|
|
|
|
|
|
|
* FTE: full time
equivalent.
** Vessels
operated by BOURBON (including vessels owned or on bareboat
charter). |
|
|
|
|
|
|
|
|
|
|
|
Financial performance |
|
|
|
|
|
|
|
Adjusteda Revenues |
727.6 |
664.1 |
+9.6% |
657.7 |
1,385.3 |
1,311.9 |
+5.6% |
(change at
constant rate) |
|
|
|
|
|
|
+6.7% |
Adjusteda Costs (excl.
bareboat charters) |
(454.4) |
(436.8) |
+4.0% |
(431.4) |
(885.8) |
(861.6) |
+2.8% |
Adjusteda EBITDAR (ex.
cap. Gain) |
273.2 |
227.3 |
+20.2% |
226.3 |
499.5 |
450.3 |
+10.9% |
EBITDAR / Revenues |
37.5% |
34.2% |
+3.3 pts |
34.4% |
36.1% |
34.3% |
+1.8 pts |
Adjusteda EBITDA |
258.7 |
354.7 |
-27.1% |
190.9 |
449.6 |
575.7 |
-21.9% |
Adjusteda EBIT |
97.1 |
210.5 |
-53.9% |
41.5 |
138.6 |
302.6 |
-54.2% |
IFRS 11
impact *** |
(0.9) |
(1.6) |
-46.9% |
(0.8) |
(1.6) |
(2.7) |
-38.4% |
EBIT |
96.2 |
208.9 |
-53.9% |
40.7 |
137.0 |
299.9 |
-54.3% |
Net
income |
88.1 |
112.5 |
-21.7% |
10.6 |
98.7 |
143.4 |
-31.2% |
Net income
(group share) |
78.5 |
100.5 |
-21.9% |
(4.8) |
73.7 |
115.0 |
-35.9% |
|
|
|
|
|
|
|
|
*** Effect of
consolidation of jointly controlled companies using the equity
method.
(a) See page 2.
|
|
|
|
|
|
|
|
Average
utilization rate (excl. crew boats) |
86.6% |
90.0% |
-3.4 pts |
89.9% |
87.7% |
89.5% |
-1.8 pts |
Average
daily rate (excluding crew boats $/d) |
19,938 |
19,459 |
+2.5% |
19,541 |
19,658 |
19,447 |
+1.1% |
"2014 was
highlighted by an improvement in the profitability of the fleet,
reflected by the cost reductions that were already well
underway", says Christian Lefèvre, Chief
Executive Officer of BOURBON. "Cost reduction
remains a priority for the upcoming quarters in order for BOURBON
to adapt to reduced activity levels."
a) see appendix I for details
Consolidated results for the 2nd half
and full year 2014 were established for the first time according to
the new accounting standards IFRS 10, IFRS 11 and IFRS 12, IAS 27
amended and IAS 28 amended relating to consolidation which became
mandatory as of January 1, 2014. Specifically, joint ventures on
which BOURBON has joint control are now consolidated using the
equity method which replaces the proportionate consolidation
method. Comparative figures are restated accordingly.
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). The principles of internal
reporting do not reflect the application of the new IFRS 10, IFRS
11 and IFRS 12, IAS 27 amended and IAS 28 amended. Consequently,
joint ventures are still proportionately consolidated, as in
previous years.
2014 market and
operational highlights
-
A significant decline in the price of
oil in the 2nd half of 2014
has further affected investments by the oil & gas companies and
deepened their cost cutting measures
-
The high number of deliveries of new
deepwater PSVs coming from shipyards is creating overcapacity in a
market that is already under pressure from the current oil price
environment
-
BOURBON is focused on operational
excellence in service execution:
-
Safety remains a strength at BOURBON,
with TRIR (Total Recordable Incident Rate per million hours worked)
of 0.76
-
Technical availability of 95.5% in
2014; target of 95% at the end of 2015 has been achieved one year
in advance
-
BOURBON is continuing its focus on cost
control through its standardization policy, which showed in
significant cost reductions during 2014
-
Utilization rates excluding Crew boats
historically have been within an 87%-92% tunnel, in line with
long-term expectations; 2014 performance was in the lower part of
this range
Full year 2014
results highlights
-
Adjusted EBITDAR increased almost 11%
for the year, with increases in Deepwater, Shallow water and
Subsea, aided by continued cost control overall and an
increase in average utilization rates in the 4th
quarter
-
2014 saw the impact of the transition
of our business model towards more rented vessels; this translates
to an increase in rent charges, with its corresponding impact on
adjusted EBITDA (decreased 21.9% vs. 2013) as well as provisions
for classification dry dock expenses that impacts adjusted EBIT
(decreased 54.2% vs. 2013)
-
For the second year, BOURBON generated
more than €400 million in free cash flow as a result of strong
vessel sales, despite a still significant investment related cash
outflow, enabling a further reduction in Net Debt in 2014 of more
than €350 million
-
MARINE
SERVICES
Operational Business Indicators |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Number of vessels FTE
* |
476.7 |
456.5 |
+4.4% |
469.9 |
473.3 |
448.6 |
+5.5% |
Technical
availability rate |
95.9% |
95.6% |
+0.3 pts |
95.3% |
95.6% |
94.6% |
+1.0
pt |
Average
utilization rate |
80.5% |
82.9% |
-2.4 pts |
81.2% |
80.8% |
83.0% |
-2.2
pts |
* Vessels operated by BOURBON (including vessels owned or on
bareboat charter). |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial Performance
In millions of euros |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Revenues |
589.3 |
537.4 |
+9.7% |
543.1 |
1,132.3 |
1,064.7 |
+6.4% |
costs
(excluding bareboat charter costs) |
(375.1) |
(361.2) |
+3.8% |
(364.3) |
(739.4) |
(712.6) |
+3.8% |
EBITDAR
(excluding capital gains) |
214.2 |
176.2 |
+21.6% |
178.7 |
392.9 |
352.0 |
+11.6% |
EBITDAR
(excluding capital gains) / Revenues |
36.3% |
32.8% |
+3.5 pts |
32.9% |
34.7% |
33.1% |
+1.6
pts |
EBITDA |
185.3 |
270.3 |
-31.4% |
138.9 |
324.1 |
444.2 |
-27.0% |
EBIT |
54.8 |
150.9 |
-63.6% |
12.4 |
67.3 |
218.5 |
-69.2% |
Adjusted EBITDAR as a percent of
adjusted revenues increased overall, with improvements in both the
Deepwater and Shallow water segments as a result of the focus on
cost control. The reduction in adjusted EBITDA versus 2013 was a
combined result of the higher level of bareboat charter costs and
lower capital gains adjusted. EBIT reduced versus the year ago
period with slight increase in depreciation and amortization
related to the increase in fleet size as well as the additional
provisions for dry docks for the vessels on bareboat charter.
Marine Services
: Deepwater offshore vessels
Operational Business Indicators |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Number of vessels FTE
* |
75.3 |
71.6 |
+5.2% |
72.2 |
73.7 |
71.8 |
+2.6% |
Technical
availability rate |
92.3% |
95.9% |
-3.6 pts |
92.9% |
92.6% |
95.2% |
-2.6
pts |
Average
utilization rate |
85.8% |
89.4% |
-3.6 pts |
87.9% |
86.9% |
88.9% |
-2
pts |
Average
daily rate (in US$/day) |
23,350 |
22,482 |
+3.9% |
23,008 |
22,967 |
22,156 |
+3.7% |
* Vessels operated by BOURBON (including vessels owned or on
bareboat charter). |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial Performance
In millions of euros |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Revenues |
212.4 |
196.3 |
+8.2% |
190.7 |
403.2 |
391.6 |
+3.0% |
costs
(excluding bareboat charter costs) |
(123.9) |
(125.5) |
-1.3% |
(116.6) |
(240.5) |
(245.3) |
-2.0% |
EBITDAR
(excluding capital gains) |
88.5 |
70.7 |
+25.1% |
74.1 |
162.6 |
146.2 |
+11.2% |
EBITDAR
(excluding capital gains) / Revenues |
41.7% |
36.0% |
+5.7 pts |
38.8% |
40.3% |
37.3% |
+3
pts |
EBITDA |
76.1 |
122.9 |
-38.1% |
50.0 |
126.2 |
196.5 |
-35.8% |
A significant 3 point increase in
adjusted EBITDAR/revenues ratio compared with 2013 was due to an
overall reduction in costs as the fleet grew by 2.6% in FTE terms,
with revenues growth in line with the increase in the fleet. The
increase in bareboat charters and decrease in capital gains on the
sale of vessels contributed to the reduced adjusted EBITDA versus
2013. The reduced technical availability is a result of the high
level of maintenance during the year.
Marine Services
: Shallow water offshore vessels
Operational Business Indicators |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Number of vessels FTE
* |
134.4 |
115.1 |
+16.8% |
128.0 |
131.2 |
109.6 |
+19.7% |
Technical
availability rate |
96.6% |
96.1% |
+0.5 pts |
96.5% |
96.5% |
96.1% |
+0.4
pts |
Average
utilization rate |
87.8% |
90.2% |
-2.4 pts |
89.5% |
88.6% |
89.8% |
-1.2
pts |
Average
daily rate (in US$/day) |
14,307 |
13,877 |
+3.1% |
14,070 |
14,177 |
13,978 |
+1.4% |
* Vessels operated by BOURBON (including vessels owned or on
bareboat charter). |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial Performance
In millions of euros |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Revenues |
234.8 |
193.0 |
+21.7% |
211.5 |
446.3 |
376.0 |
+18.7% |
costs
(excluding bareboat charter costs) |
(154.3) |
(129.8) |
+18.9% |
(142.2) |
(296.5) |
(257.5) |
+15.1% |
EBITDAR
(excluding capital gains) |
80.5 |
63.2 |
+27.4% |
69.3 |
149.8 |
118.4 |
+26.5% |
EBITDAR
(excluding capital gains) / Revenues |
34.3% |
32.7% |
+1.6 pts |
32.8% |
33.6% |
31.5% |
+2.1
pts |
EBITDA |
64.0 |
105.1 |
-39.1% |
53.5 |
117.5 |
160.4 |
-26.7% |
The increase in revenues was close
to matching the increase fleet size in 2014 compared with 2013
(+19.7% FTEs), while the adjusted EBITDAR/Revenues ratio increased
more than 2 points as a result of continued progress on the cost
control programs at BOURBON. Technical availability rate in this
segment has remained above the 2015 target, making further gains on
the high performance seen in 2013. The rental cost of the
additional vessels under bareboat charter in 2014 and a lower
amount of capital gains on the vessels sold have combined to
reduced adjusted EBITDA results compared with last year.
Marine Services
: Crew boat vessels
Operational Business Indicators |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Number of vessels FTE
* |
267.0 |
269.9 |
-1.1% |
269.7 |
268.4 |
267.1 |
+0.5% |
Technical
availability rate |
96.6% |
95.3% |
+1.3 pts |
95.4% |
96.0% |
93.8% |
+2.2
pts |
Average
utilization rate |
75.3% |
78.0% |
-2.7 pts |
75.5% |
75.4% |
78.7% |
-3.3
pts |
Average
daily rate (in US$/day) |
5,066 |
5,270 |
-3.9% |
5,250 |
5,100 |
5,198 |
-1.9% |
* Vessels operated by BOURBON (including vessels owned or on
bareboat charter). |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial Performance
In millions of euros |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Revenues |
142.0 |
148.1 |
-4.1% |
140.9 |
282.9 |
297.2 |
-4.8% |
costs
(excluding bareboat charter costs) |
(96.9) |
(105.9) |
-8.5% |
(105.5) |
(202.4) |
(209.8) |
-3.5% |
EBITDAR
(excluding capital gains) |
45.1 |
42.2 |
+6.9% |
35.3 |
80.5 |
87.3 |
-7.9% |
EBITDAR
(excluding capital gains) / Revenues |
31.8% |
28.5% |
+3.3 pts |
25.1% |
28.4% |
29,4% |
-0.9
pts |
EBITDA |
45.1 |
42.2 |
+6.9% |
35.3 |
80.5 |
87.3 |
-7.9% |
In 2014, there was a significant
3.5% decrease in costs versus 2013, while the operating fleet size
(in FTEs) remained stable. As a result, the adjusted
EBITDAR/revenues ratio only decreased 0.9 points versus 2013
despite revenues declining 4.8%. The second half of 2014 saw cost
control improve even further with costs lower by 8.5%, boosting
adjusted EBITDAR/revenues by 3.3 points year on year. Technical
availability in the Crew boat segment has exceeded the 2015 target
a year early by attaining 96% in 2014, a strong increase of 2.2
points versus the prior year with reduced maintenance during the
year.
Subsea
Services
Operational Business Indicators |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Number of vessels FTE
* |
19.0 |
18.6 |
+2.2% |
17.0 |
18.0 |
18.6 |
-3.2% |
Technical
availability rate |
93.6% |
94.1% |
-0.5 pts |
93.3% |
93.5% |
93.4% |
+0.1
pt |
Average
utilization rate |
81.7% |
91.3% |
-9.6 pts |
88.8% |
85.0% |
90.2% |
-5.2
pts |
Average
daily rate (in US$/day) |
48,622 |
42,226 |
+15.1% |
46,452 |
47,470 |
41,190 |
+15.2% |
* Vessels operated by BOURBON (including vessels owned or on
bareboat charter). |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial Performance
In millions of euros |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Revenues |
124.9 |
114.3 |
+9.2% |
105.3 |
230.2 |
223.3 |
+3.1% |
costs
(excluding bareboat charter costs) |
(68.3) |
(65.6) |
+4.0% |
(59.7) |
(127.9) |
(129.5) |
-1.2% |
EBITDAR
(excluding capital gains) |
56.6 |
48.7 |
+16.3% |
45.6 |
102.2 |
93.8 |
+9.0% |
EBITDAR
(excluding capital gains) / Revenues |
45.3% |
42.6% |
+2.7 pts |
43.3% |
44.4% |
42.0% |
+2.4
pts |
EBITDA |
71.0 |
82.0 |
-13.4% |
50.1 |
121.2 |
127.1 |
-4.6% |
EBIT |
42.3 |
58.9 |
-28.3% |
29.8 |
72.0 |
83.6 |
-13.9% |
The combination of new Bourbon
Evolution 800 fleet entries and cost reductions versus the year ago
period enabled adjusted EBITDAR to increase 9% and as a percentage
of adjusted revenues, an increase of 2.4 points to 44.4%. The
additional vessels sold and retained under bareboat charter have
resulted in reductions in adjusted EBITDA, with adjusted EBIT
reduced further due to the provisions for dry dock expenses for
these same vessels.
Other
|
|
|
|
|
|
|
|
Adjusted Financial Performance
In millions of euros |
H2 2014 |
H2
2013 |
Var H2 2014/
H2 2013 |
H1
2014 |
2014 |
2013 |
Var 2014/
2013 |
Revenues |
13.5 |
12.3 |
+9.0% |
9.4 |
22.8 |
24.0 |
-4.8% |
costs
(excluding bareboat charter costs) |
(11.1) |
(9.9) |
+11.5% |
(7.4) |
(18.5) |
(19.5) |
-5.2% |
EBITDAR
(excluding capital gains) |
2.4 |
2.4 |
-1.2% |
1.9 |
4.3 |
4.5 |
-2.9% |
EBITDAR
(excluding capital gains) / Revenues |
17.8% |
19.7% |
-1.8 pts |
20.7% |
19.0% |
18.6% |
+0.4
pts |
EBITDA |
2.4 |
2.5 |
-2.0% |
1.9 |
4.3 |
4.5 |
-3.4% |
EBIT |
0.0 |
0.7 |
-101% |
(0.7) |
(0.7) |
0.5 |
n/s |
Using chartered vessels has two
advantages for BOURBON: it makes it possible to meet client demands
and generate contracts while new vessels are being built and added
to the fleet. Using chartered vessels also enables BOURBON to offer
vessels that are not part of its regular line of services when
needed for global calls for tenders. Volatility of "Other" revenues
is largely due to the variation in the number of chartered vessels
during the period.
Consolidated Capital Employed |
12/31/2014 |
12/31/2013 |
In millions of euros |
|
|
|
Net
non-current Assets |
2,777.7 |
2,554.7 |
Assets
held for sale |
28.2 |
498.5 |
Working
Capital |
268.9 |
198.9 |
|
|
|
Total Capital Employed |
3,074.8 |
3,252.1 |
|
|
|
Shareholders equity |
1,625.0 |
1,484.8 |
Non-current liabilities (provisions and deferred taxes) |
101.4 |
65.3 |
Net
debt |
1,348.5 |
1,702.0 |
|
|
|
Total Capital Employed |
3,074.8 |
3,252.1 |
|
|
|
Net non-current assets increased
due to the delivery of vessels beyond that which are part of the
vessel sale and bareboat charter agreements. Meanwhile, the
decrease in assets held for sale reflects the trasnfer of vessels
during 2014 that were part of the sale agreements with ICBCL and
Standard Chartered Bank.
The gearing ratio has continued to
decline over the course of 2014, reaching 0.83 as of December 31,
2014, declining from 1.15 a year earlier. The gearing ratio is now
almost 50% lower than it was at the end of June 2013 (1.53), after
which the impact of the vessel sale proceeds began to impact net
debt. Since the start of the Asset Smart action plan, $US1,643
million worth of vessels have been sold, with an additional 5
vessels remaining to be transferred to Minsheng Financial Leasing
for approximately $US145 million under the agreement signed in the
4th quarter
2014.
Consolidated Sources and uses of Cash
In millions of euros |
2014 |
2013 |
|
|
|
|
|
Cash generated by operations |
1,123.3 |
|
959.9 |
|
Vessels in
service (A) |
|
406.0 |
|
395.1 |
Vessels
sale |
|
717.3 |
|
564.8 |
|
|
|
|
|
Cash out for : |
(156.1) |
|
(179.5) |
|
Interest |
|
(55.7) |
|
(70.5) |
Taxes
(B) |
|
(15.3) |
|
(38.3) |
Dividends |
|
(85.1) |
|
(70.7) |
|
|
|
|
|
Net Cash from activity |
967.1 |
|
780.5 |
|
|
|
|
|
|
Net debt
change |
(430.1) |
|
(307.7) |
|
Perpetual
bond |
98.7 |
|
0.0 |
|
|
|
|
|
|
Use of
cash for |
(641.9) |
|
(478.7) |
|
Investments |
|
(567.6) |
|
(451.4) |
Working
capital (C) |
|
(74.3) |
|
(27.3) |
|
|
|
|
|
Other
sources and uses of cash |
6.2 |
|
6.0 |
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
466.1 |
|
442.9 |
|
Net Cash
flow from operating activities (A+B+C) |
|
316.4 |
|
329.5 |
Acquisition of property, plant and equipment and intangible
assets |
|
(567.6) |
|
(451.4) |
Sale of
property, plant and equipment and intangible assets |
|
717.3 |
|
564.8 |
|
|
|
|
|
The two primary sources of cash
generation for BOURBON are from the vessels in service as a ship
operator and the sale of vessels as a ship owner. From these
sources of cash, the stakeholders such as banks, government
entities and shareholders receive a portion in the form of
interest, taxes and dividends. Another use of cash is for the
continued high level of investment in assets for the business and
required working capital increases. These various uses of cash make
the speed of debt reduction less rapid, though still
significant.
The free cash flow generated
through the combined vessel operator and vessel owner elements of
the business has made a significant improvement since the beginning
of the vessel sale and bareboat charter program, having generated
total free cash flows of over €900 million in the past 2 years.
This has enabled BOURBON to reduce its net debt by approximately
€802 million since June 30, 2013 while taking delivery of 59 new
vessels during this period.
OUTLOOK
The oil service industry is in the midst of a down cycle. Bourbon's
past investment strategy and its focus on operational excellence
has prepared it well to navigate the entire business cycle.
Operational resilience factors already in place puts BOURBON in a
good position to face the current challenging market.
One such factor is the
well-balanced split of revenue generation among the different
segments and activities in which BOURBON operates. The current
equilibrium represents a significantly greater balance compared
with 2006, for example, when Deepwater revenues made up almost 60%
of total revenues. The result is a increased shares of less
volatile markets in the development and production markets compared
to exploration activities.
A second factor is the diversified
portfolio of clients. As BOURBON has grown its range of services
offered and its worldwide geographical footprint through its
partnerships, it now services not only international oil companies
but also National Oil companies, medium sized/independent oil
companies and contractors.
Safety is the highest priority for
both BOURBON and it's clients and the safety performance of
BOURBON's fleet is among the industry leaders, and this is a key
factor in being a preferred supplier of services for clients.
BOURBON's past investment strategy
of assembling a fleet of modern, innovative and safe vessels has
proven its value to the market, evidenced by average utilization
rates of its vessels exceeding that for it's peers throughout the
cycle. Vessels equipped with diesel electric propulsion and dynamic
positioning has brought cost reductions to its customers, in
addition to the savings resulting from its industrial maintenance
program.
These factors, combined with the
financial strength of the company, partly as a result of the Asset
Smart action plan, will help BOURBON to be more resilient during
this phase of the cycle.
The two debt ratio targets
announced with the Asset Smart action plan (maximum debt/equity of
0.5 and maximum net debt/EBITDA of 2.0) remain targets for BOURBON,
though they could be delayed due to current market conditions. For
the same reasons, while the target of bareboat charter costs to
reach no more than 30% of EBITDAR remains in place, the timing and
planned level of vessel sale and bareboat charters may be revised
over time.
Taking into account the weak oil
price and the reduced activity in the oil services market, BOURBON
is adapting, having reinforced its action plan to reduce costs.
BOURBON anticipates a stable or slight decrease in revenues for
2015 and a slight decrease in the margin of EBITDAR/revenues.
MAJOR OPERATIONS
AND HIGHLIGHTS
-
In late October 2014, BOURBON
successfully completed a €100 million perpetual, deeply
subordinated bond issue; this issue is accounted for as equity
under IFRS standards and the prospectus is available on BOURBON's
web site under 'regulated information'
-
BOURBON's sale of vessels to ICBCL is
now complete, with the transfer of 46 vessels for total proceeds of
US$1.4 billion, comprised of 8 Deepwater vessels, 31 Shallow water
vessels and 7 Subsea vessels
-
The sale agreement with Standard
Chartered Bank for the sale of 6 vessels has also been completed as
scheduled during 2014, with a total of 3 Deepwater vessels and 3
Shallow water vessels transferred for total proceeds of US$151
million
-
At the beginning of December 2014,
BOURBON signed an agreement with Minsheng Financial Leasing Co. for
the sale and bareboat charter of 8 vessels for a total amount of
approximately US$202 million. The ownership of 3 vessels has been
transferred for approximately US$57 million. The remaining 5
vessels will be transferred to MFL during 2015.
ADDITIONAL
INFORMATION
-
BOURBON's results will continue to be
influenced by the €/US$ exchange rate
-
BOURBON set up €/US$ hedging contracts
at an average exchange rate of €1 = 1.2332 to partially cover its
estimated EBITDA exposure in 2015
-
The 2014 financial statements were
closed by the Board of Directors on February 23, 2015
-
The auditing procedures have been
completed and the audit report relating to certification is in the
process of being issued
-
At the next Annual General Meeting, The
Board will propose a dividend payment to shareholders of €1.00 per
share, with an ex-dividend date of June 2, 2015 and a payment date
of June 4, 2015
FINANCIAL
CALENDAR
2015
1st Quarter
Revenues press release |
April
29, 2015 |
Annual Shareholder's Meeting |
May 21, 2015 |
APPENDIX I
Reconciliation of
adjusted financial information with the consolidated financial
statements
The adjustment items are the
effects of the consolidation of joint ventures according to the
equity method. At December 31, 2014 and for the comparative period
2013, adjustment elements are:
|
|
|
|
In millions of euros |
2013 Adjusted |
IFRS 11 Impact* |
2013
Consolidated |
Revenues |
1,311.9 |
(22.3) |
1,289.6 |
Direct Costs & General and Administrative costs |
(861.6) |
6.7 |
(854.9) |
EBITDAR (excluding capital
gains) |
450.3 |
(15.6) |
434.7 |
Bareboat charter costs |
(13.1) |
- |
(13.1) |
EBITDA (excluding capital gains) |
437.2 |
(15.6) |
421.6 |
Capital gain |
138.5 |
- |
138.5 |
EBITDA |
575.7 |
(15.6) |
560.1 |
Depreciation, Amortization & Provisions |
(273.1) |
4.1 |
(269.0) |
Share of results from companies under the equity
method |
0.0 |
8.8 |
8.8 |
EBIT |
302.6 |
(2.7) |
299.9 |
*Effect of consolidation of
jointly controlled companies using the equity method. |
|
In millions of euros |
2014 Adjusted |
IFRS 11 Impact* |
2014
Consolidated |
Revenues |
1,385.3 |
(38.9) |
1,346.4 |
Direct Costs & General and Administrative costs |
(885.8) |
27.6 |
(858.3) |
EBITDAR (excluding capital
gains) |
499.5 |
(11.3) |
488.1 |
Bareboat charter costs |
(110.6) |
- |
(110.6) |
EBITDA (excluding capital gains) |
388.8 |
(11.3) |
377.5 |
Capital gain |
60.8 |
- |
60.8 |
EBITDA |
449.6 |
(11.3) |
438.3 |
Depreciation, Amortization & Provisions |
(311.0) |
4.0 |
(307.0) |
Share of results from companies under the equity
method |
0.0 |
5.7 |
5.7 |
EBIT |
138.6 |
(1.6) |
137.0 |
*Effect
of consolidation of jointly controlled companies using the equity
method. |
APPENDIX II
Simplified Income
Statement
In millions of euros (except per share data) |
H2 2014 |
H2
2013
(restated) * |
Var H2 2014
/
H2 2013 |
2014 |
2013
(restated) * |
Var 2014
/ 2013 |
|
|
|
|
|
|
|
Revenues |
703.8 |
650.2 |
+8.2% |
1,346.4 |
1,289.6 |
+4.4% |
Direct
costs |
(369.1) |
(361.1) |
+2.2% |
(720.5) |
(719.2) |
+0.2% |
General
& Administrative costs |
(67.3) |
(70.1) |
-4.0% |
(137.8) |
(135.7) |
+1.5% |
EBITDAR excluding capital gains |
267.4 |
219.0 |
+22.1% |
488.1 |
434.7 |
+12.3% |
Bareboat
charter costs |
(65.4) |
(9.7) |
ns |
(110.6) |
(13.1) |
ns |
EBITDA excluding capital gains |
202.0 |
209.3 |
-3.5% |
377.5 |
421.6 |
-10.5% |
Capital
gain |
50.9 |
137.2 |
-62.9% |
60.8 |
138.5 |
-56.1% |
Gross operating income EBITDA |
252.9 |
346.4 |
-27.0% |
438.3 |
560.1 |
-21.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, Amortization & Provisions |
(158.9) |
(142.0) |
+11.9% |
(307.0) |
(269.0) |
+14.1% |
Share of
results from companies under the equity method |
2.2 |
4.5 |
-50.9% |
5.7 |
8.8 |
-35.9% |
Operating income (EBIT) |
96.2 |
208.9 |
-53.9% |
137.0 |
299.9 |
-54.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
profit/loss |
5.7 |
(90.4) |
-106.3% |
(9.0) |
(133.4) |
-93.2% |
Income
tax |
(13.8) |
(9.9) |
+40.4% |
(29.2) |
(27.0) |
+8.4% |
Income on
equity interests sold |
- |
3.9 |
-100% |
- |
3.9 |
-100% |
Income
from discontinued operations |
- |
- |
- |
- |
- |
- |
Net Income |
88.1 |
112.5 |
-21.7% |
98.7 |
143.4 |
-31.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interests |
(9.6) |
(12.0) |
-20.0% |
(25.0) |
(28.4) |
-12.1% |
Net income (Group share) |
78.5 |
100.5 |
-21.9% |
73.7 |
115.0 |
-35.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share |
- |
- |
- |
1.03 |
1.61 |
- |
Weighted
average number of shares outstanding |
- |
- |
- |
71,586,734 |
71,580,591 |
- |
|
|
|
|
|
|
|
*Consolidated 2013
figures have been restated according to the implementation of the
new accounting standards.
APPENDIX III
Simplified
Consolidated Balance Sheet
In millions of euros |
12/31/2014 |
12/31/2013
(restated)* |
|
12/31/2014 |
12/31/2013
(restated)* |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
1,625.0 |
1,484.8 |
|
|
|
|
|
|
Net
property, plant and equipment |
2,576.8 |
2,473.8 |
Financial
debt > 1 year |
1,082.5 |
1,308.5 |
Other
non-current assets |
256.8 |
143.7 |
Other
non-current liabilities |
152.5 |
124.3 |
|
|
|
|
|
|
TOTAL NON-CURRENT ASSETS |
2,833.6 |
2,617.5 |
TOTAL NON-CURRENT LIABILITIES |
1,235.0 |
1,432.8 |
|
|
|
|
|
|
Cash on
hand and in banks |
352.4 |
768.2 |
Financial
debt < 1 year |
618.4 |
1,161.7 |
Other
currents assets |
603.2 |
495.1 |
Other
current liabilities |
339.0 |
299.9 |
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
955.6 |
1,263.3 |
TOTAL CURRENT LIABILITIES |
957.4 |
1,461.6 |
|
|
|
|
|
|
Non-current assets held for sale |
28.2 |
498.5 |
Liabilities
directly associated with non-current assets classified as held for
sale |
- |
- |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
2,192.5 |
2,894.4 |
TOTAL ASSETS |
3,817.4 |
4,379.2 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY |
3,817.4 |
4,379.2 |
*Consolidated 2013
figures have been restated according to the implementation of the
new accounting standards.
APPENDIX IV
Simplified
Consolidated Cash Flow Statement
In millions of euros |
2014 |
2013
(restated) * |
|
|
|
Cash flow from operating activities |
|
|
consolidated net income (loss) |
98.7 |
143.4 |
cash flow
from operating activities |
217.7 |
186.1 |
Net cash flow from operating activities (A) |
316.4 |
329.5 |
|
|
|
|
|
|
Cash flow from investing activities |
|
|
acquisition of property, plant and equipment and intangible
assets |
(567.6) |
(451.4) |
sale of
property, plant and equipment and intangible assets |
717.3 |
564.8 |
other cash
flow from investing activities |
1.9 |
0.7 |
Net Cash flow from investing activities (B) |
151.5 |
114.0 |
|
|
|
|
|
|
Cash flow from financing activities |
|
|
net
increase (decrease) in borrowings |
(366.7) |
(238.7) |
Perpetual
bond issue |
98.7 |
- |
dividends
paid to shareholders of the group |
(71.6) |
(53.4) |
cost of
net debt |
(55.7) |
(70.5) |
other cash
flow from financing activities |
(9.2) |
(12.0) |
Net Cash flow used in financing activities (C) |
(404.5) |
(374.6) |
|
|
|
|
|
|
Impact
from the change in exchange rates (D) |
8.3 |
(8.3) |
Change in net cash (A) + (B) + (C) + (D) |
71.7 |
60.7 |
|
|
|
|
|
|
Net cash
at beginning of period |
99.0 |
38.3 |
Change in
net cash |
71.7 |
60.7 |
Net cash
at end of period |
170.7 |
99.0 |
|
|
|
* Consolidated 2013
figures have been restated according to the implementation of the
new accounting standards.
APPENDIX V
Quarterly revenue
breakdown
In millions of euros |
|
2014 |
|
2013 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Marine
Services |
|
306.1 |
283.1 |
272.7 |
270.3 |
|
270.3 |
267.0 |
268.7 |
258.5 |
Deepwater offshore vessels |
|
108.4 |
104.0 |
97.1 |
93.6 |
|
95.7 |
100.6 |
102.3 |
93.0 |
Shallow water offshore vessels |
|
124.6 |
110.3 |
106.3 |
105.1 |
|
100.0 |
93.0 |
90.1 |
92.8 |
Crew boats |
|
73.2 |
68.8 |
69.3 |
71.6 |
|
74.7 |
73.4 |
76.3 |
72.8 |
Subsea
Services |
|
62.9 |
61.9 |
53.3 |
52.0 |
|
55.4 |
58.9 |
57.3 |
51.6 |
Other |
|
7.2 |
6.3 |
4.6 |
4.7 |
|
5.8 |
6.5 |
6.7 |
4.9 |
Total adjusted revenues |
|
376.3 |
351.3 |
330.6 |
327.1 |
|
331.6 |
332.4 |
332.8 |
315.1 |
IFRS 11
impact* |
|
(13.3) |
(10.5) |
(8.1) |
(7.0) |
|
(6.0) |
(7.8) |
(4.3) |
(4.2) |
TOTAL CONSOLIDATED ** |
|
363.0 |
340.8 |
322.6 |
320.0 |
|
325.6 |
324.6 |
328.5 |
310.9 |
*Effect of
consolidation of joint ventures using the equity
method
** Consolidated 2013 figures have been restated
according to the implementation of the new accounting
standards.
Quarterly average
utilization rates for the BOURBON offshore fleet
In % |
|
2014 |
|
2013 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Marine
Services |
|
81.7 |
79.4 |
80.0 |
82.4 |
|
83.3 |
82.4 |
82.4 |
83.9 |
Deepwater offshore vessels |
|
85.8 |
85.7 |
87.2 |
88.6 |
|
90.1 |
88.8 |
90.0 |
86.6 |
Shallow water offshore vessels |
|
89.1 |
86.6 |
87.8 |
91.2 |
|
90.2 |
90.2 |
89.1 |
89.8 |
Crew boats |
|
76.7 |
74.0 |
74.3 |
76.6 |
|
78.4 |
77.5 |
77.7 |
80.8 |
Subsea
Services |
|
82.8 |
81.1 |
83.9 |
94.4 |
|
89.2 |
93.6 |
88.0 |
90.6 |
"Total fleet excluding Crew boats" |
|
87.5 |
85.8 |
87.3 |
90.6 |
|
90.1 |
90.0 |
89.3 |
88.7 |
"Total fleet" average utilization rate |
|
81.7 |
79.4 |
80.2 |
82.8 |
|
83.5 |
82.9 |
82.6 |
84.2 |
Quarterly average
daily rates for the BOURBON offshore fleet
In US$/day |
|
2014 |
|
2013 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Deepwater
offshore vessels |
|
23,093 |
23,887 |
23,219 |
22,839 |
|
22,241 |
22,683 |
22,092 |
21,392 |
Shallow
water offshore vessels |
|
14,452 |
14,152 |
14,006 |
14,199 |
|
14,013 |
13,728 |
13,850 |
14,315 |
Crew
boats |
|
5,067 |
5,113 |
5,197 |
5,323 |
|
5,309 |
5,204 |
5,122 |
5,034 |
Subsea
Services |
|
48,063 |
50,992 |
46,868 |
45,407 |
|
43,120 |
41,331 |
40,644 |
40,405 |
"Total fleet excluding Crew boats" average daily
rate |
|
19,871 |
20,247 |
19,588 |
19,497 |
|
19,329 |
19,573 |
19,458 |
19,427 |
Quarterly number of
vessels (end of period)
In number of vessels* |
|
2014 |
|
2013 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Marine
Services |
|
483 |
481 |
481 |
479 |
|
466 |
459 |
452 |
445 |
Deepwater offshore vessels |
|
79 |
75 |
74 |
73 |
|
72 |
71 |
73 |
73 |
Shallow water offshore vessels |
139 |
135 |
133 |
130 |
122 |
117 |
109 |
105 |
Crew boats |
265 |
271 |
274 |
276 |
272 |
271 |
270 |
267 |
Subsea
Services |
|
21 |
19 |
19 |
18 |
|
18 |
19 |
19 |
19 |
FLEET TOTAL |
|
504 |
500 |
500 |
497 |
|
484 |
478 |
471 |
464 |
*Vessels operated by
BOURBON (including vessels owned or on bareboat charter)
Quarterly deliveries
of vessels
In number of vessels |
|
2014 |
|
2013 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Marine
Services |
|
10 |
5 |
8 |
12 |
|
10 |
9 |
9 |
9 |
Deepwater offshore vessels |
|
5 |
1 |
1 |
2 |
|
1 |
0 |
1 |
1 |
Shallow water offshore vessels |
4 |
2 |
3 |
6 |
5 |
8 |
4 |
3 |
Crew boats |
1 |
2 |
4 |
4 |
4 |
1 |
4 |
5 |
Subsea
Services |
|
2 |
0 |
1 |
2 |
|
0 |
0 |
0 |
1 |
FLEET TOTAL |
|
12 |
5 |
9 |
14 |
|
10 |
9 |
9 |
10 |
Yearly revenue
breakdown
In millions of euros |
|
Full Year |
|
2014 |
2013 |
Marine
Services |
|
1,132.3 |
1,064.7 |
Deepwater offshore vessels |
|
403.2 |
391.6 |
Shallow water offshore vessels |
|
446.3 |
376.0 |
Crew boats |
|
282.9 |
297.2 |
Subsea
Services |
|
230.2 |
223.3 |
Other |
|
22.8 |
24.0 |
Total adjusted revenues |
|
1,385.3 |
1,311.9 |
IFRS 11
impact* |
|
(38.9) |
(22.3) |
TOTAL CONSOLIDATED** |
|
1,346.4 |
1,289.6 |
*Effect of
consolidation of joint ventures using the equity
method
** Consolidated 2013 figures have been restated
according to the implementation of the new accounting
standards.
Yearly average
utilization rates for the BOURBON offshore fleet
In % |
|
Full Year |
|
2014 |
2013 |
Marine
Services |
|
80.8 |
83.0 |
Deepwater offshore vessels |
|
86.9 |
88.9 |
Shallow water offshore vessels |
|
88.6 |
89.8 |
Crew boats |
|
75.4 |
78.7 |
Subsea
Services |
|
85.0 |
90.2 |
"Total fleet excluding Crew boats" |
|
87.7 |
89.5 |
"Total fleet" average utilization rate |
|
81.0 |
83.3 |
Yearly average daily
rates for the BOURBON offshore fleet
In US$/day |
|
Full Year |
|
2014 |
2013 |
Deepwater
offshore vessels |
|
22,967 |
22,156 |
Shallow
water offshore vessels |
|
14,177 |
13,978 |
Crew
boats |
|
5,100 |
5,198 |
Subsea
Services |
|
47,470 |
41,190 |
"Total fleet excluding Crew boats" average daily
rate |
|
19,658 |
19,447 |
Yearly deliveries of
vessels
In number of vessels |
|
Full Year |
|
2014 |
2013 |
Marine
Services |
|
35 |
37 |
Deepwater Offshore vessels |
|
9 |
3 |
Shallow water Offshore |
15 |
20 |
Crew boats |
11 |
14 |
Subsea
Services |
|
5 |
1 |
FLEET TOTAL |
|
40 |
38 |
Breakdown of BOURBON
revenues by geographical region
In millions of euros |
4th quarter |
Full Year |
Q4 2014 |
Q4
2013 |
Change |
2014 |
2013 |
Change |
Africa |
218.7 |
186.1 |
+17.5% |
794.9 |
750.4 |
+5.9% |
Europe
& Mediterranean/Middle East |
63.2 |
56.7 |
+11.3% |
228.5 |
228.0 |
+0.2% |
Americas |
49.7 |
46.7 |
+6.4% |
189.7 |
187.5 |
+1.2% |
Asia |
44.6 |
42.0 |
+6.2% |
172.3 |
145.9 |
+18.0% |
Other key
indicators
Quarterly
breakdown
|
|
2014 |
|
2013 |
|
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Average
€/US$ exchange rate for the quarter (in €) |
|
1.25 |
1.33 |
1.37 |
1.37 |
|
1.36 |
1.32 |
1.31 |
1.32 |
€/US$
exchange rate at closing (in €) |
|
1.21 |
1.26 |
1.37 |
1.38 |
|
1.38 |
1.35 |
1.31 |
1.28 |
Average
price of Brent for the quarter (in US$/bbl) |
|
76 |
102 |
110 |
108 |
|
109 |
110 |
102 |
112 |
Annual
breakdown
|
|
|
Full Year |
|
|
|
2014 |
2013 |
Average
12-month €/US$ exchange rate in (€) |
|
|
1.33 |
1.33 |
€/US$
exchange rate at closing (in €) |
|
|
1.21 |
1.38 |
Average
12-month price of Brent (in US$/bbl) |
|
|
99 |
109 |
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 28 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 2014,
BOURBON'S revenue came to €1,346.4 million and the company operated
a fleet of 505 vessels as of December 31, 2014. Under the "BOURBON
2015 Leadership Strategy" plan, the group has built a vast fleet of
innovative, high-performance mass produced offshore
vessels.
Placed by ICB
(Industry Classification Benchmark) in the "Oil Services" sector,
BOURBON is listed on the Euronext Paris, Compartment A.
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
Jérôme Goaer
+33 144 824 624
jerome.goaer@consultants.publicis.fr
Véronique Duhoux
+33 144 824 633
veronique.duhoux@consultants.publicis.fr
Vilizara Lazarova
+33 144 824 634
vilizara.lazarova@consultants.publicis.fr
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information contained therein.
Source: BOURBON via Globenewswire
HUG#1899164