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)
|
| 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 $30-40 per barrel.
While the recovery in the Offshore maritime services market is already perceptible, the industry remains considerably impacted by market overcapacity, and is experiencing difficulties in reactivating vessels.
This environment, together with regional markets showing highly specific developments depending on discoveries and maintenance needs of existing platforms, will have a substantial impact on utilization rates and daily rates according to vessel segments and regions. To capture growth in tomorrow's markets, strong regional presence, together with operational agility, appear essential.
MAJOR EVENTS
A Shareholders' Meeting for holders of Undated Deeply Subordinated Fixed to Floating Rate Bonds took place on April 17, 2019. It authorized BOURBON to defer the payment of interest initially planned for April 24, 2019. All the decisions taken can be consulted on Bourbon's website (https://www.bourbonoffshore.com/fr/investisseurs/investisseurs-obligataires (https://www.bourbonoffshore.com/fr/investisseurs/investisseurs-obligataires) https://www.bourbonoffshore.com/fr/investisseurs/investisseurs-obligataires).
ADDITIONAL INFORMATION
BOURBON's results will continue to be affected by the €/US$ 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 (mailto: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 (mailto:christelle.loisel@bourbon-online.com) | |
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
