Release details

2019-05-02 07:00 CEST
  • Print
  • Share Share
en fr

BOURBON 1st Quarter 2019 financial information

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
May 2, 2019

HUG#2243157