Marseilles, May 2, 2019
BOURBON 1st Quarter 2019
financial information
Q1
2019 saw the continued stabilization of activity, with adjusted
revenue of €178.0 million (consolidated revenue of €162.3
million)
-
The recovery of the Offshore services market
appears to have started in Q1 2019: BOURBON has reactivated 5
Supply vessels in order to respond to customers' needs.
-
The group continues to rationalize its fleet,
which explains the 2.8-point increase in average utilization rates.
Average daily rates are stabilizing, with a light increase in
certain activities.
-
Despite the still difficult market conditions,
Bourbon Subsea Services has continued its steady progress seen over
the last 4 quarters.
|
In € millions, unless otherwise noted |
Q1 2019 |
Q4
2018 |
Change
Q1 / Q4 |
Q1
2018 |
Financial performance |
|
|
|
|
|
|
|
|
|
Adjusteda revenues |
178.0 |
175.9 |
+1.2% |
171.0 |
(change at constant rate) |
|
|
+1.0% |
|
Bourbon Marine & Logistics |
87.9 |
88.0 |
-0.1% |
92.4 |
Bourbon Mobility |
47.3 |
46.1 |
+2.6% |
48.2 |
Bourbon Subsea Services |
40.2 |
38.2 |
+5.3% |
27.2 |
Others |
2.5 |
3.6 |
-29.0% |
3.1 |
|
|
|
|
|
IFRS 11
impact * |
(15.7) |
(13.7) |
|
(13.3) |
|
|
|
|
|
Consolidated revenues |
162.3 |
162.2 |
+0.1% |
157.6 |
|
|
|
|
|
|
|
|
|
|
Operational indicators |
|
|
|
|
|
|
|
|
|
Number of
vessels (FTE)** |
477.4 |
491.9 |
-2.9% |
507.2 |
|
|
|
|
|
Average
utilization rate (%) |
54.5 |
51.7 |
+2.8 pts |
53.0 |
|
|
|
|
|
Average
daily rate ($/d) |
8,172 |
7,989 |
+2.3% |
8,179 |
|
|
|
|
|
*Effect of consolidation of joint ventures using the equity
method |
|
|
|
|
* *FTE: Full Time Equivalent |
|
|
|
|
"In a
market which appears to be more positively oriented, we have
reactivated 5 supply vessels and keep on streamlining our fleet.
Our teams are fully focused on the fundamentals of operational
excellence, particularly safety and the technical availability of
vessels, while preserving available cash. The roll-out of
the #BOURBONINMOTION
strategic plan has seen good progress as shown by
the signing of an integrated logistics contract with SHELL in
Bulgaria," declared Gaël Bodénès,
Chief Executive Officer of
BOURBON Corporation.
(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). 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. Furthermore, internal reporting (and again the adjusted
financial information) does not take into account IAS 29 (Financial Reporting in
Hyperinflationary Economies), applicable for the first time in 2017
(retroactively from January 1) to an operational joint venture in
Angola.
BOURBON MARINE & LOGISTICS
In € millions, unless otherwise noted |
Q1 2019 |
Q4
2018 |
Change
Q1 / Q4 |
Q1
2018 |
Financial performance |
|
|
|
|
|
|
|
|
|
Adjusteda revenues |
87.9 |
88.0 |
-0.1% |
92.4 |
Deepwater offshore vessels |
53.8 |
53.0 |
+1.5% |
57.4 |
Shallow water offshore vessels |
34.1 |
35.0 |
-2.5% |
35.0 |
|
|
|
|
|
|
|
|
|
|
Operational indicators |
|
|
|
|
|
|
|
|
|
Number of
vessels (FTE)* |
207.5 |
212.0 |
-2.1% |
217.2 |
|
|
|
|
|
Average
utilization rate (%) |
53.9 |
50.5 |
+3.4pts |
52.7 |
Deepwater offshore vessels |
66.9 |
61.0 |
+5.9pts |
65.2 |
Shallow water offshore vessels |
44.7 |
43.2 |
+1.5pts |
44.3 |
|
|
|
|
|
Average
daily rate ($/d) |
10,188 |
10,177 |
+0.1% |
10,911 |
Deepwater offshore vessels |
12,123 |
12,701 |
-4.6% |
13,577 |
Shallow water offshore vessels |
8,136 |
7,694 |
+5.7% |
8,292 |
|
|
|
|
|
* FTE: Full Time Equivalent |
|
|
|
|
Adjusted revenues for Bourbon
Marine & Logistics remained relatively stable over this quarter
at €87.9 million compared to €88.0 million for Q4 2018 (-0.1%),
mainly due to a calendar effect that saw a reduction in the number
of working days from one quarter to another.
Average utilization rates
continued to increase across the two business segments, mainly in
Deepwater offshore (+5.9 pts compared to Q4 2018), reflecting both
the efforts to rationalize the fleet and the gradual recovery in
market demand. In total, 5 vessels were reactivated during the
quarter. Average daily rates remained stable with a slight
improvement in Shallow water Offshore as the efforts to reduce
global overcapacity by all market players being still ongoing.
BOURBON
MOBILITY
In € millions, unless otherwise noted |
Q1 2019 |
Q4
2018 |
Change
Q1 / Q4 |
Q1
2018 |
Financial performance |
|
|
|
|
|
|
|
|
|
Adjusteda revenues |
47.3 |
46.1 |
+2.6% |
48.2 |
|
|
|
|
|
|
|
|
|
|
Operational indicators |
|
|
|
|
|
|
|
|
|
Number of
vessels (FTE)* |
249.9 |
259.9 |
-3.8% |
269.0 |
|
|
|
|
|
Average
utilization rate (%) |
54.7 |
52.5 |
+2.2pts |
54.4 |
|
|
|
|
|
Average
daily rate ($/d) |
4,351 |
4,239 |
+2.6% |
4,549 |
|
|
|
|
|
* FTE: Full Time Equivalent
|
|
|
|
|
Adjusted revenues increased by
2.6% in Q1 2019 compared to Q4 2018, thanks to the 2.6% increase in
average daily rates and an improved technical reliability of the
fleet, particularly in the Crewliners activity, following
considerable maintenance and repair initiatives in the second
semester 2018. Nigeria stood out as the most dynamic market in this
quarter, with a significant increase in utilization rates driven by
the gradual reactivation of vessels.
Overall, the utilization rate for
Bourbon Mobility is at its highest for 12 months at 54.7%, thanks
to the reactivation of vessels and the scrapping of certain vessels
that could not be reactivated due to age.
BOURBON SUBSEA
SERVICES
In € millions, unless otherwise noted |
Q1 2019 |
Q4
2018 |
Change
Q1 / Q4 |
Q1
2018 |
Financial performance |
|
|
|
|
|
|
|
|
|
Adjusteda revenues |
40.2 |
38.2 |
+5.3% |
27.2 |
|
|
|
|
|
|
|
|
|
|
Operational indicators |
|
|
|
|
|
|
|
|
|
Number of
vessels (FTE)* |
20.0 |
20.0 |
- |
21.0 |
|
|
|
|
|
Average
utilization rate (%) |
58.9 |
54.9 |
+4.0pts |
39.0 |
|
|
|
|
|
Average
daily rate ($/d) |
33,346 |
33,207 |
+0.4% |
34,933 |
|
|
|
|
|
* FTE: Full Time Equivalent |
|
|
|
|
Adjusted revenues reached €40.2
million, up 5.3% compared to the last quarter of 2018, benefiting
from the recovery of activity in South-East Asia and continued
sustained demand in the Middle East and India. Two turnkey projects
were completed for subsea decommissioning activities in the Persian
Gulf and Africa, supported by our engineering teams.
Average utilization rates
increased by 4 points compared to Q4 2018, representing the
best rate since Q3 2017. This increase particularly reflects the
opportunities captured in "flotel" services in West Africa to meet
a demand for shallow water platform maintenance, following 4 years
of reduced investment in this domain. Charter rates, stable over
several quarters, remain under pressure.
OTHERS
In € millions, unless otherwise noted |
Q1 2019 |
Q4
2018 |
Change
Q1 / Q4 |
Q1
2018 |
Financial performance |
|
|
|
|
|
|
|
|
|
Adjusteda revenues |
2.5 |
3.6 |
-29.0% |
3.1 |
|
|
|
|
|
"Other" activities are those that
do not fit into the Marine & Logistics, Mobility or Subsea
Services segments. The majority of the total represents earnings
from miscellaneous ship management activities.
OUTLOOK
In an uncertain political climate,
prices per barrel remain on an upward trend. Investments by Majors
are up, with significant discoveries in oil and gas fields,
particularly in South Africa, Guyana, Bahrein and Angola. The
Majors continue to maintain pressure on production costs, however,
with a breakeven target of $30-40 per barrel.
While the recovery in the Offshore
maritime services market is already perceptible, the industry
remains considerably impacted by market overcapacity, and is
experiencing difficulties in reactivating vessels.
This environment, together with
regional markets showing highly specific developments depending on
discoveries and maintenance needs of existing platforms, will have
a substantial impact on utilization rates and daily rates according
to vessel segments and regions. To capture growth in tomorrow's
markets, strong regional presence, together with operational
agility, appear essential.
MAJOR EVENTS
A Shareholders' Meeting for
holders of Undated Deeply Subordinated Fixed to Floating Rate Bonds
took place on April 17, 2019. It authorized BOURBON to defer the
payment of interest initially planned for April 24, 2019. All the
decisions taken can be consulted on Bourbon's website
(https://www.bourbonoffshore.com/fr/investisseurs/investisseurs-obligataires
https://www.bourbonoffshore.com/fr/investisseurs/investisseurs-obligataires).
ADDITIONAL
INFORMATION
BOURBON's results will continue to
be affected by the €/US$ exchange rate.
FINANCIAL
CALENDAR
2019
Annual Shareholders' Meeting |
June 28, 2019 |
2019
1st Half Results
press release and presentation |
September 5, 2019 |
2019
3rd Quarter
Financial Information press release |
November
7, 2019 |
APPENDIX
Quarterly revenue
breakdown
In € millions |
|
2019 |
|
2018 |
|
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Bourbon
Marine & Logistics |
|
87.9 |
|
88.0 |
87.0 |
89.9 |
92.4 |
Deepwater offshore vessels |
|
53.8 |
|
53.0 |
52.4 |
55.0 |
57.4 |
Shallow water offshore vessels |
|
34.1 |
|
35.0 |
34.6 |
35.0 |
35.0 |
Bourbon
Mobility |
|
47.3 |
|
46.1 |
46.3 |
47.1 |
48.2 |
Subsea
Services |
|
40.2 |
|
38.2 |
37.9 |
30.2 |
27.2 |
Other |
|
2.5 |
|
3.6 |
2.3 |
1.9 |
3.1 |
Total adjusted revenues |
|
178.0 |
|
175.9 |
173.5 |
169.2 |
171.0 |
IFRS 11
impact* |
|
(15.7) |
|
(13.7) |
(13.4) |
(15.2) |
(13.3) |
TOTAL CONSOLIDATED |
|
162.3 |
|
162.2 |
160.2 |
153.9 |
157.6 |
*Effect of consolidation of joint ventures using the equity
method
Quarterly average
utilization rates for the fleet in operation
In % |
|
2019 |
|
2018 |
|
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Bourbon
Marine & Logistics |
|
90.4 |
|
88.1 |
86.7 |
84.9 |
89.0 |
Deepwater offshore vessels |
|
92.0 |
|
86.6 |
86.9 |
83.5 |
88.1 |
Shallow water offshore vessels |
|
88.8 |
|
89.7 |
86.6 |
86.2 |
90.0 |
Bourbon
Mobility |
|
79.6 |
|
78.0 |
77.8 |
81.1 |
84.3 |
Subsea
Services |
|
78.5 |
|
74.0 |
73.9 |
60.9 |
55.7 |
Average utilization rate |
|
83.9 |
|
81.8 |
81.2 |
81.7 |
84.9 |
Quarterly average
utilization rates for the fleet
In % |
|
2019 |
|
2018 |
|
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Bourbon
Marine & Logistics |
|
53.9 |
|
50.5 |
51.0 |
51.6 |
52.7 |
Deepwater offshore vessels |
|
66.9 |
|
61.0 |
60.4 |
63.0 |
65.2 |
Shallow water offshore vessels |
|
44.7 |
|
43.2 |
44.4 |
43.9 |
44.3 |
Bourbon
Mobility |
|
54.7 |
|
52.5 |
51.8 |
53.8 |
54.4 |
Subsea
Services |
|
58.9 |
|
54.9 |
54.3 |
45.4 |
39.0 |
Average utilization rate |
|
54.5 |
|
51.7 |
51.6 |
52.5 |
53.0 |
Quarterly average
daily rates for the fleet
In US$/day |
|
2019 |
|
2018 |
|
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Bourbon
Marine & Logistics |
|
10,188 |
|
10,177 |
10,128 |
10,360 |
10,911 |
Deepwater offshore vessels |
|
12,123 |
|
12,701 |
12,705 |
12,873 |
13,577 |
Shallow water offshore vessels |
|
8,136 |
|
7,694 |
7,709 |
7,924 |
8,292 |
Bourbon
Mobility |
|
4,351 |
|
4,239 |
4,285 |
4,326 |
4,549 |
Bourbon
Subsea Services |
|
33,346 |
|
33,207 |
30,321 |
30,571 |
34,933 |
Average daily rate |
|
8,172 |
|
7,989 |
7,854 |
7,786 |
8,179 |
Quarterly number of
vessels (end of period)
In number of vessels* |
|
2019 |
|
2018 |
|
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Bourbon
Marine & Logistics |
|
204 |
|
211 |
212 |
214 |
216 |
Deepwater offshore vessels |
|
84 |
|
87 |
87 |
87 |
87 |
Shallow water offshore vessels |
120 |
124 |
125 |
127 |
129 |
Bourbon
Mobility |
248 |
252 |
260 |
266 |
269 |
Bourbon
Subsea Services |
|
20 |
|
20 |
20 |
20 |
21 |
FLEET TOTAL |
|
472 |
|
483 |
492 |
500 |
506 |
*Vessels operated by BOURBON (including vessels owned or on
bareboat charter)
Breakdown of
revenues by geographical region
In € millions |
|
2019 |
|
2018 |
|
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Africa |
|
101.1 |
|
101.7 |
90.6 |
89.4 |
99.9 |
Europe &
Mediterranean/Middle East |
|
35.2 |
|
33.4 |
40.5 |
36.3 |
26.2 |
Americas |
|
23.6 |
|
21.0 |
22.3 |
24.3 |
27.0 |
Asia |
|
18.0 |
|
19.7 |
20.2 |
19.2 |
17.9 |
Other key
indicators
In € millions |
|
2019 |
|
2018 |
|
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
Average
€/US$ exchange rate for the quarter (in €) |
|
1.14 |
|
1.14 |
1.16 |
1.19 |
1.23 |
€/US$ exchange rate at
closing (in €) |
|
1.12 |
|
1.15 |
1.16 |
1.17 |
1.23 |
Average
price of Brent for the quarter (in US$/bbl) |
|
63 |
|
69 |
75 |
75 |
67 |
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 8,200 skilled employees. Through its 31 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
three operating activities (Marine & Logistics, Mobility and
Subsea Services) and also protects the French coastline for the
French Navy.
In 2018,
BOURBON'S revenue came to €689.5 million and the company operated a
fleet of 483 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 agency
Publicis Consultants |
Investor Relations, analysts,
shareholders |
Vilizara
Lazarova |
+33 140
138 607
investor-relations@bourbon-online.com |
+33 144
824 634
vilizara.lazarova@consultants.publicis.fr |
|
|
|
|
Corporate Communication |
|
Christelle Loisel |
|
+33 491
136 732
christelle.loisel@bourbon-online.com |
|
|
|
PDF version
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
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