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BOURBON: Financial informations 3rd quarter and 9 months 2018

Marseilles, November 8, 2018

             

BOURBON Financial information 3rd quarter and 9 months 2018

             

     Adjusted revenues for the 3rd quarter recorded a slight rise of 2.6% compared to the previous quarter (consolidated revenues up 4.1%)

                

Adjusted revenues amounted to €173.5 million (€160.2 million on a consolidated basis), reflecting the positive impact of new Subsea contracts including turnkey projects in Offshore wind, which demonstrate the ongoing transformation of business models. Business was up slightly in the 3rd quarter of 2018, following 4 consecutive quarters of decline. Average utilization rates were stable at 51.6%, compared to 52.5% in the 2nd quarter of 2018. Average daily rates held up, despite vessel overcapacity and gradual renewal of long-term contracts at persistently low "market" rates.


  Quarter 9 months
In € millions, unless otherwise noted Q3 2018 Q2 2018 Change
Q3 /  Q2
Q3 2017 2018 2017 Change
2018/2017
Financial performance              
               
Adjusteda revenues 173.5 169.2 +2.6% 204.3 513.7 663.7 -22.6%
(change at constant rate)     +2.2%       -14.6%
Bourbon Marine & Logistics 87.0 89.9 -3.3% 97.7 269.3 311.0 -13.4%
Bourbon Mobility 46.3 47.1 -1.6% 51.4 141.6 165.2 -14.3%
Bourbon Subsea Services 37.9 30.2 +25.5% 52.1 95.4 176.5 -46.0%
Others 2.3 1.9 +21.6% 3.0 7.4 11.0 -33.0%
               
IFRS 11 impact *** (13.4) (15.2)   (11.9) (41.9) (51.7)  
               
Consolidated revenues 160.2 153.9 +4.1% 192.4 471.7 612.1 -22.9%
 

 
             
               
Operational indicators              
               
Number of vessels (FTE)* 498.5 502.9 -0.9% 511.0 502.8 512.0 -1.8%
               
Average utilization rate (%) 51.6 52.5 -0.9 pt 53.4 52.3 53.7 -1.4 pt
               
Average daily rate ($/d) 7,854 7,786 +0.9% 8,668 7,947 8,897 -10.7%
               
* FTE: Full Time Equivalent              

 "In this 3rd quarter of 2018, we continued to make every effort with our teams and partners to control our costs while maintaining our operational performance and revenues. More than ever before, we are adapting and transforming to remain a leader on our markets," 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

  Quarter 9 months
In € millions, unless otherwise noted Q3 2018 Q2 2018 Change
Q3 /  Q2
Q3 2017 2018 2017 Change
2018/2017
Financial performance              
               
Adjusteda revenues 87.0 89.9 -3.3% 97.7 269.3 311.0 -13.4%
Deepwater offshore vessels 52.4 55.0 -4.7% 59.9 164.7 197.0 -16.4%
Shallow water offshore vessels 34.6 35.0 -1.1% 37.8 104.6 114.0 -8.3%
               
               
Operational indicators              
               
Number of vessels (FTE)* 213.1 215.8 -1.3% 220.0 215.3 221.0 -2.6%
               
Average utilization rate (%) 51.0 51.6 -0.6 pt 50.2 51.6 48.1 +3.5 pts
Deepwater offshore vessels   60.4   63.0 -2.6 pts   62.2   62.5   61.1 +1.4 pt
Shallow water offshore vessels   44.4   43.9 +0.5 pt   42.1   44.2   39.2 +5.0 pts
               
Average daily rate ($/d) 10,128 10,360 -2.3% 11,082 10,465 11,843 -11.6%
Deepwater offshore vessels 12,705 12,873 -1.3%   13,781 13,009 14,687 -11.4%
Shallow water offshore vessels 7,709 7,924 -2.8%   8,371 8,027 8,856 -9.4%
               
* FTE: Full Time Equivalent              

Bourbon Marine & Logistics recorded a decrease in revenues of 3.3% (-3.9% at constant rates) compared with the 2nd quarter, impacted by a volatile market still characterized by low prices. Renewed growth in the number of tenders observed in the 2nd quarter was borne out and Bourbon won new exploration contracts, particularly in Mexico, Nigeria, Angola and the Middle East.

Average utilization rates remained relatively stable (0.6 points lower than in the previous quarter), with the decline in deepwater offshore vessel rates linked mainly to the cancelling of 3 Bourbon Explorer charters in Angola. Other regions remained stable. It should be noted that these 3 deepwater offshore vessels were repositioned on long-term contracts in Angola and Nigeria as of November 1, 2018.

Average daily rates fell by 2.3%, reflecting downward negotiations with a national company, while also illustrating the gradual renewal of long-term contracts at market rates that remain low overall.


BOURBON MOBILITY

  Quarter 9 months
In € millions, unless otherwise noted Q3 2018 Q2 2018 Change
Q3 /  Q2
Q3 2017 2018 2017 Change
2018/2017
Financial performance              
               
Adjusteda revenues 46.3 47.1 -1.6% 51.4 141.6 165.2 -14.3%
               
               
Operational indicators              
               
Number of vessels (FTE)* 265.4 266.8 -0.5% 269.0 267.1 269.0 -0.7%
               
Average utilization rate (%) 51.8 53.8 -2.0 pts 55.1 53.3 57.6 -4.3 pts
               
Average daily rate ($/d) 4,285 4,326 -0.9% 4,453 4,355 4,427 -1.6%
               
* FTE: Full Time Equivalent              

In the 3rd quarter of 2018, Bourbon Mobility reported a 1% drop in revenues from the 2nd quarter at constant exchange rates, after an encouraging first half. Business was impacted by a two-point decline in utilization rates and continued volatility in average daily rates, which struggled to stabilize compared with the previous quarter (-0.9%). However, significant contracts have also been renewed for 2019.

The utilization rate was impacted by the end of Crew boat operations in Cameroon in June and a higher level of maintenance and repairs activity than in the previous quarter, particularly among large "crewliner" vessels (long-distance transport), which saw very intense activity in the Gulf of Guinea during the 1st half.

BOURBON SUBSEA SERVICES

  Quarter 9 months
In € millions, unless otherwise noted Q3 2018 Q2 2018 Change
Q3 /  Q2
Q3 2017 2018 2017 Change
2018/2017
Financial performance              
               
Adjusteda revenues 37.9 30.2 +25.5% 52.1 95.4 176.5 -46.0%
               
               
Operational indicators              
               
Number of vessels (FTE)* 20.0 20.3 -1.5% 22.0 20.4 22.0 -7.3%
               
Average utilization rate (%) 54.3 45.4 +8.9 pts 63,4 46.4 62.2 -15.8 pts
               
Average daily rate ($/d) 30,321 30,571 -0.8% 34,304 32,353 36,649 -11.7%
               
* FTE: Full Time Equivalent              

Bourbon Subsea Services posted a 25.5% increase in revenues compared with the 2nd quarter of 2018 (+24.2% at constant rates). This was mainly due to a rise in utilization rates of nearly 9 points and the awarding of turnkey projects, particularly in the field of floating offshore windfarms. The business benefited from renewed growth in spot maintenance work and the return to operation of shallow-water platforms during the quarter, particularly in the Gulf of Guinea.

However, average charter rates remained stable from the previous quarter, still weakened by a difficult market environment.

Bourbon Subsea Services installed the first semi-submersible floating wind turbine off the coast of Scotland this summer. This diversification will continue to pay off over the coming quarters.

OTHERS

  Quarter 9 months
In € millions, unless otherwise noted Q3 2018 Q2 2018 Change
Q3 /  Q2
Q3 2017 2018 2017 Change
2018/2017
Financial performance              
               
Adjusteda revenues 2.3 1.9 +21.6% 3.0 7.4 11.0 -33.0%
               

Activities included are those that do not fit into either the Marine & Logistics, Mobility or Subsea Services segments. The majority of the total represents earnings from miscellaneous ship management activities.

OUTLOOK

With oil prices set to remain well above $60 a barrel, our clients are recovering leeway. This has led to acquisitions of new deepwater offshore blocks in Mexico, Brazil and Africa (Gabon, Cameroon, Guinea, etc.), as well as in the Mediterranean. However, initial investments are still mainly geared towards onshore projects, particularly shale oil and gas in the United States. Clients are currently focusing on short-term projects offering swift return on investment, but are also launching exploration campaigns to renew their reserves and thus meet growing demand.

A recovery appears to be under way, although it remains impacted by vessel overcapacity in the PSV and AHTS segments. We expect prices to remain persistently low. In this context, BOURBON is focusing its efforts on operational excellence, cash management, cost-cutting and overhauling its model by rolling out its strategic action plan #BOURBONINMOTION.

MAJOR EVENTS

As no mandatory payment event occurred during the year preceding the October 24, 2018 due date, BOURBON announced on October 16 that, in accordance with applicable terms and conditions, it would not be paying interest to holders of the Perpetual Deeply Subordinated Notes (TSSDI) issued by BOURBON Corporation - (code ISIN: FR0012239531).

Regarding its search for new financing, BOURBON confirms that its attempts to secure new financial partners in order to ensure its development and the implementation of the strategic plan #BOURBONINMOTION are moving forward diligently. The parameters of these potential new financings, in particular their amounts and structures (debt/equity instruments) are not yet determined.

In this context, and in the absence of confirmation of the general waiver renewal to date, BOURBON has announced on November 2 having obtained the opening of conciliation procedures to the benefit of 22 BOURBON Corporation subsidiaries from the president of the commercial court of Marseilles. These conciliation procedures will allow BOURBON to actively pursue, in an amicable framework, its search for all solutions for its development as well as its discussions with the main creditors and financial lessors of the group.

ADDITIONAL INFORMATION

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

FINANCIAL CALENDAR

2018 Full Year and 4th quarter revenues press release February 7, 2019
2018 Annual Results press release and presentation March 14, 2019
2019 First quarter financial information May 2, 2019
Combined Shareholders' Meeting June 7, 2019

APPENDIX

Quarterly revenue breakdown

In € millions   2018   2017
  Q3 Q2 Q1   Q4 Q3 Q2 Q1
Bourbon Marine & Logistics   87.0 89.9 92.4   100.2 97 .7 107.4 105.9
Deepwater offshore vessels   52.4 55.0 57.4   60.0 59.9 68.3 68.8
Shallow water offshore vessels   34.6 35.0 35.0   40.2 37.8 39.1 37.1
Bourbon Mobility   46.3 47.1 48.2   51.0 51.4 55.0 58.9
Subsea Services   37.9 30.2 27.2   43.6 52.1 67.8 56.6
Others   2.3 1.9 3.1   2.1 3.0 3.8 4.1
Total adjusted revenues   173.5 169.2 171.0   196.9 204.3 234.0 225.5
IFRS 11 impact*   (13.4) (15.2) (13.3)   (15.3) (11.9) (19.2) (20.6)
TOTAL CONSOLIDATED   160.2 153.9 157.6   181.6 192.4 214.7 204.9

*Effect of consolidation of joint ventures using the equity method

Quarterly average utilization rates for the fleet in operation

In %   2018   2017
  Q3 Q2 Q1   Q4 Q3 Q2 Q1
Bourbon Marine & Logistics   86.7 84.9 89.0   86.8 86.3 89.1 88.0
Deepwater offshore vessels   86.9 83.5 88.1   83.0 86.1 88.0 86.2
Shallow water offshore vessels   86.6 86.2 90.0   90.6 86.6 90.2 90.1
Bourbon Mobility   77.8 81.1 84.3   82.8 78.1 75.3 80.1
Subsea Services   73.9 60.9 55.7   80.6 89.6 83.3 85.2
Average utilization rate   81.2 81.7 84.9   84.3 81.8 80.6 83.0

Quarterly average utilization rates for the fleet

In %   2018   2017
  Q3 Q2 Q1   Q4 Q3 Q2 Q1
Bourbon Marine & Logistics   51.0 51.6 52.7   51.9 50.2 48.2 45.8
Deepwater offshore vessels   60.4 63.0 65.2   61.3 62.2 60.3 61.0
Shallow water offshore vessels   44.4 43.9 44.3   45.6 42.1 40.0 35.6
Bourbon Mobility   51.8 53.8 54.4   55.0 55.1 56.4 61.4
Subsea Services   54.3 45.4 39.0   56.7 63.4 65.7 57.5
Average utilization rate   51.6 52.5 53.0   53.7 53.4 53.3 54.5

Quarterly average daily rates for the fleet

In US$/day   2018   2017
  Q3 Q2 Q1   Q4 Q3 Q2 Q1
Bourbon Marine & Logistics   10,128 10,360 10,911   10,802 11,082 11,830 12,501
Deepwater offshore vessels   12,705 12,873 13,577   13,660 13,781 14,863 15,084
Shallow water offshore vessels   7,709 7,924 8,292   8,220 8,371 8,749 9,534
Bourbon Mobility   4,285 4,326 4,549   4,422 4,453 4,393 4,270
Bourbon Subsea Services   30,321 30,571 34,933   31,425 34,304 37,976 37,488
Average daily rate   7,854 7,786 8,179   8,299 8,668 9,075 8,769

Quarterly number of vessels (end of period)

In number of vessels*   2018   2017
  Q3 Q2 Q1   Q4 Q3 Q2 Q1
Bourbon Marine & Logistics   212 214 216   217 220 221 222
Deepwater offshore vessels   87 87 87  

 
86 89 89 89
Shallow water offshore vessels 125 127 129 131 131 132 133
Bourbon Mobility 260 266 269 269 269 269 269
Bourbon Subsea Services   20 20 21   22 22 22 22
FLEET TOTAL   492 500 506   508 511 512 513

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

Nine months' average utilization rates for the fleet in operation

In %   9 months
  2018 2017
Bourbon Marine & Logistics   86.5 87.7
Deepwater offshore vessels   85.6 86.6
Shallow water offshore vessels   87.5 88.9
Bourbon Mobility   80.9 77.8
Bourbon Subsea Services   64.0 85.9
Average utilization rate   82.4 81.7

Nine months' average utilization rates for the fleet

In %   9 months
  2018 2017
Bourbon Marine & Logistics   51.6 48.1
Deepwater offshore vessels   62.5 61.1
Shallow water offshore vessels   44.2 39.2
Bourbon Mobility   53.3 57.6
Bourbon Subsea Services   46.4 62.2
Average utilization rate   52.3 53.7

Nine months average daily rates for the fleet

In US$/day   9 months
  2018 2017
Bourbon Marine & Logistics   10,465 11,843
Deepwater offshore vessels   13,009 14,687
Shallow water offshore vessels   8,027 8,856
Bourbon Mobility   4,355 4,427
Bourbon Subsea Services   32,353 36,649
Average daily rate   7,947 8,897

Breakdown of revenues by geographical region

In € millions Quarter 9 months
Q3 2018 Q2 2018 Change Q3 2017 2018 2017 Change
Africa 90.6 89.4 +1.4% 118.9 280.0 384.3 -27.1%
Europe & Mediterranean/Middle East 40.5 36.3 +11.5% 31.1 102.9 91.5 +12.5%
Americas 22.3 24.3 -8.2% 36.0 73.5 115.4 -36.3%
Asia 20.2 19.2 +5.1% 18.3 57.3 72.6 -21.1%


In € millions   2018   2017
  Q3 Q2 Q1   Q4 Q3 Q2 Q1
Africa   90.6 89.4 99.9   113.4 118.9 135.3 130.1
Europe & Mediterranean / Middle East   40.5 36.3 26.2   31.6 31.1 31.6 28.8
Americas   22.3 24.3 27.0   32.3 36.0 38.3 41.3
Asia   20.2 19.2 17.9   19.7 18.3 29.0 25.3

Other key indicators

Quarterly breakdown

    2018   2017
    Q3 Q2 Q1   Q4 Q3 Q2 Q1
Average €/US$ exchange rate for the quarter (in €)   1.16 1.19 1.23   1.18 1.17 1.10 1.06
€/US$ exchange rate at closing (in €)   1.16 1.17 1.23   1.20 1.18 1.14 1.07
Average price of Brent for the quarter  (in US$/bbl)   75 75 67   61 55 51 54

Nine months' breakdown

    9 months
    2018 2017
Average €/US$ exchange rate for the half year (in €)   1.19 1.11
€/US$ exchange rate at closing (in €)   1.16 1.18
Average price of Brent for the half year (in US$/bbl)   72 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 more than 8,400 skilled employees. Through its 29 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 2017, BOURBON'S revenue came to €860.6 million and the company operated a fleet of 508 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
 
 

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