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 |
ChangeQ1 / 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 |
ChangeQ1 / 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 |
ChangeQ1 / 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 ($/d) |
4,351 |
4,239 |
+2.6% |
4,549 |
|
|
|
|
|
* FTE: Full Time Equivalent
|
|
|
|
|
Adjusted revenues increased by 2.6% in Q1 2019
compared to Q4 2018, thanks to the 2.6% increase in average daily
rates and an improved technical reliability of the fleet,
particularly in the Crewliners activity, following considerable
maintenance and repair initiatives in the second semester 2018.
Nigeria stood out as the most dynamic market in this quarter, with
a significant increase in utilization rates driven by the gradual
reactivation of vessels.
Overall, the utilization rate for Bourbon
Mobility is at its highest for 12 months at 54.7%, thanks to the
reactivation of vessels and the scrapping of certain vessels that
could not be reactivated due to age.
BOURBON SUBSEA SERVICES
In € millions, unless otherwise noted |
Q1 2019 |
Q4 2018 |
ChangeQ1 / Q4 |
Q1 2018 |
Financial performance |
|
|
|
|
|
|
|
|
|
Adjusteda revenues |
40.2 |
38.2 |
+5.3% |
27.2 |
|
|
|
|
|
|
|
|
|
|
Operational indicators |
|
|
|
|
|
|
|
|
|
Number of vessels (FTE)* |
20.0 |
20.0 |
- |
21.0 |
|
|
|
|
|
Average utilization rate (%) |
58.9 |
54.9 |
+4.0pts |
39.0 |
|
|
|
|
|
Average daily rate ($/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 |
ChangeQ1 / 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 agencyPublicis Consultants |
Investor Relations, analysts,
shareholders |
Vilizara Lazarova |
+33 140 138 607
investor-relations@bourbon-online.com |
+33 144
824 634vilizara.lazarova@consultants.publicis.fr |
|
|
|
|
Corporate
Communication |
|
Christelle Loisel |
|
+33 491
136 732christelle.loisel@bourbon-online.com |
|
|
|