The impact of further spending reductions by oil & gas companies is being felt globally, with the most significant effects being felt in Asia and the Europe/Mediterranean/Middle East regions.
Market impacts on BOURBON performance are reflected in lower adjusted revenues when compared to Q4 2015 at current rates (-5.9%), resulting mainly from:
There were 47 supply vessels stacked as of March 31, 2016.
Crew Boats segment remained resilient with stable results for revenues as well as for average utilization and daily rates.
| In € millions, except as noted | Quarter |
| Q1 2016 | Q1 2015 | Variation
2016/2015 | Q4 2015 |
| Operational indicators | | | | |
| Number of vessels (FTE)* | 511.4 | 500.0 | +2.3% | 508.0 |
| Number of vessels (end of period)** | 515 | 501 | +14 vessels | 511 |
| (*) FTE: Full Time Equivalent
(**) Vessels operated by BOURBON (including vessels owned or on bareboat charter)
|
| Adjusted Revenuesa | | | | |
| Marine Services | 259.5 | 312.2 | -16.9% | 275.7 |
| Deepwater offshore vessels | 98.6 | 113.8 | -13.4% | 106.1 |
| Shallow water offshore vessels | 94.6 | 123.5 | -23.4% | 103.0 |
| Crew boats | 66.3 | 74.9 | -11.5% | 66.6 |
| Subsea Services | 50.0 | 67.1 | -25.5% | 53.3 |
| Other | 5.0 | 4.3 | +15.9% | 5.2 |
| Total adjusted revenues
(change at constant rate) | 314.5 | 383.6 | -18.0%
-18.6% | 334.2
-7.5% |
| IFRS 11 impact*** | (22.5) | (27.4) | | (26.1) |
| Group TOTAL | 292.0 | 356.3 | -18.0% | 308.1 |
| (***) Effect of consolidation of jointly controlled companies using the equity method
|
| Average utilization rate (excl. Crew boats) | 71.7% | 84.3% | -12.6 pts | 76.7% |
| Average daily rate (excl. Crew boats) | 16,299 | 19,301 | -15.6% | 16,809 |
(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). As of January 1, 2015, the 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. Adjusted comparative figures are restated accordingly.
| | Quarter |
| Q1 2016 | Q1 2015 | Variation
2016/2015 | Q4 2015 |
| Adjusted Revenues (in € millions) | 259.5 | 312.2 | -16.9% | 275.7 |
| Number of vessels (end of period)* | 492 | 479 | +13 vessels | 488 |
| Average utilization rate | 70.3% | 79.2% | -8.9 pts | 73.0% |
* Vessels operated by BOURBON (including vessels owned or on bareboat charter).
Adjusted revenues declined in all segments of Marine Services during the 1st quarter. West Africa, Asia and the Europe/Mediterranean/Middle East regions felt the greatest impact of declines in average utilization rates and average daily rates in the quarter. Overall, adjusted revenues in the Americas region increased slightly. Brazil showed an improvement in average utilization rates during the quarter, while the average daily rates were negatively impacted by the weakening of the Brazilian real.
| | Quarter |
| Q1 2016 | Q1 2015 | Variation
2016/2015 | Q4 2015 |
| Adjusted Revenues (in € millions) | 98.6 | 113.8 | -13.4% | 106.1 |
| Number of vessels (end of period)* | 89 | 79 | +10 vessels | 88 |
| Average utilization rate | 77.2% | 86.0% | -8.8 pts | 82.6% |
| Average daily rate (US$/day) | 17,630 | 21,942 | -19.7% | 18,360 |
* Vessels operated by BOURBON (including vessels owned or on bareboat charter).
The 1st quarter of 2016 was highlighted by the delivery and first operation in the North Sea of the Bourbon Arctic, a brand new AHTS vessel with more than 300 tons of bollard pull capability. The increase in the number of vessels in the fleet versus a year ago was offset by the proactive measures to reduce costs, notably by the stacking of up to 13 vessels in the 1st quarter 2016, contributing to a decline in adjusted revenues of 13.4%. The impact of the increase in the number of stacked vessels is seen in the average utilization rate for the quarter having declined both year on year and sequentially. Average daily rates versus a year ago declined almost 20% as a result of the market conditions in the global OSV sector.
| | Quarter |
| Q1 2016 | Q1 2015 | Variation
2016/2015 | Q4 2015 |
| Adjusted Revenues (in € millions) | 94.6 | 123.5 | -23.4% | 103.0 |
| Number of vessels (end of period)* | 133 | 138 | -5 vessels | 133 |
| Average utilization rate | 71.3% | 84.5% | -13.2 pts | 76.5% |
| Average daily rate (in US$/day) | 11,967 | 13,882 | -13.8% | 12,205 |
* Vessels operated by BOURBON (including vessels owned or on bareboat charter).
Adjusted revenues in the current quarter declined compared with the year ago period due to the combined effect of vessel sales and market conditions. During the quarter, there were up to 28 vessels stacked, thus significantly impacting the utilization rate, which declined over 13 points. The average daily rate was mostly impacted by declines in West Africa, Asia and Europe/Mediterranean/Middle East regions.
|
| Quarter |
| Q1 2016 | Q1 2015 | Variation
2016/2015 | Q4 2015 |
| Adjusted Revenues (in € millions) | 66.3 | 74.9 | -11.5% | 66.6 |
| Number of vessels (end of period) | 270 | 262 | +8 vessels | 267 |
| Average utilization rate | 67.5% | 74.4% | -6.9 pts | 68.0% |
| Average daily rate (in US$/day) | 4,538 | 4,934 | -8.0% | 4,530 |
The Crew Boats segment continues to show its resilience as a preferred solution by clients in order to minimize their costs versus the use of helicopters. The impact of fewer projects is seen with the reduction in activity versus a year ago. However, sequentially, performance was stable with flat adjusted revenues benefiting from stable average utilization rates and average daily rates.
| | Quarter |
| Q1 2016 | Q1 2015 | Variation
2016/2015 | Q4 2015 |
| Adjusted Revenues (in € millions) | 50.0 | 67.1 | -25.5% | 53.3 |
| Number of vessels (end of period)* | 22 | 21 | +1 vessel | 22 |
| Average utilization rate | 52.3% | 75.9% | -23.6 pts | 54.0% |
| Average daily rate (in US$/day) | 44,119 | 50,118 | -12.0% | 47,232 |
* Vessels operated by BOURBON (including vessels owned or on bareboat charter).
Adjusted revenues declined 6.2% versus the 4th quarter 2015, reflecting the continued difficult market conditions. The effect of the proactive measures to stack up to 11 vessels during the 1st quarter 2016 is seen in the utilization rates, reaching 52% for the period, which was relatively stable versus the 4th quarter 2015.
| | Quarter |
| Q1 2016 | Q1 2015 | Variation
2016/2015 | Q4 2015 |
| Adjusted Revenues (in € millions) | 5.0 | 4.3 | +15.9% | 5.2 |
Activities included are those that do not fit into either Marine Services or Subsea Services. Making up the majority of the total are earnings from such items as miscellaneous ship management activities, logistics as well as from the cement carrier Endeavor.
Oil prices have recently increased from their lows and expectations are that the current imbalance between oil supply and demand should become more balance later in the year or next year. While the demand for offshore supply vessels remains very difficult, 2016 will likely see a low point in the cycle with probably a slight rebound in the second half of the year. This improvement will be mainly in the areas of maintaining production of existing oil fields and maintenance of production units.
BOURBON will focus on excellence in service execution and will strive to maintain a high utilization rate of the fleet in operation (excluding stacked vessels) utilizing its international network, mainly with local partnerships.
The group will continue to stack vessels in its supply fleet if there are no commercial opportunities in the medium term in order to reduce operational costs.
As the industry remains in this prolonged downturn, BOURBON remains focused on what it can control: safety, fleet availability, cost control initiatives and cash preservation.
| Annual Shareholder`s Meeting | May 26, 2016 |
| 2016 1st Half Financial Information press release | August 3, 2016 |
| 2016 1st Half Results press release and presentation | September 8, 2016 |
| 2016 3rd Quarter Financial Information press release | November 3, 2016 |
| In € millions | | 2016 | | 2015 |
| | Q1 | | Q4 | Q3 | Q2 | Q1 |
| Marine Services | | 259.5 | | 275.7 | 279.0 | 299.8 | 312.2 |
| Deepwater offshore vessels | | 98.6 | | 106.1 | 101.9 | 109.6 | 113.8 |
| Shallow water offshore vessels | | 94.6 | | 103.0 | 107.2 | 116.1 | 123.5 |
| Crew boats | | 66.3 | | 66.6 | 69.9 | 74.2 | 74.9 |
| Subsea Services | | 50.0 | | 53.3 | 61.0 | 70.9 | 67.1 |
| Other | | 5.0 | | 5.2 | 4.1 | 4.5 | 4.3 |
| Total adjusted revenues | | 314.5 | | 334.2 | 344.1 | 375.2 | 383.6 |
| IFRS 11 impact* | | (22.5) | | (26.1) | (23.8) | (30.1) | (27.4) |
| TOTAL CONSOLIDATED** | | 292.0 | | 308.1 | 320.2 | 345.1 | 356.3 |
* Effect of consolidation of joint ventures using the equity method.
| In % | | 2016 | | 2015 |
| | Q1 | | Q4 | Q3 | Q2 | Q1 |
| Marine Services | | 70.3 | | 73.0 | 74.1 | 77.4 | 79.2 |
| Deepwater offshore vessels | | 77.2 | | 82.6 | 79.8 | 84.0 | 86.0 |
| Shallow water offshore vessels | | 71.3 | | 76.5 | 75.5 | 78.3 | 84.5 |
| Crew boats | | 67.5 | | 68.0 | 71.5 | 75.0 | 74.4 |
| Subsea Services | | 52.3 | | 54.0 | 64.3 | 70.2 | 75.9 |
| "Total fleet excluding Crew boats" | | 71.7 | | 76.7 | 76.0 | 79.5 | 84.3 |
| "Total fleet" average utilization rate | | 69.5 | | 72.1 | 73.7 | 77.1 | 79.1 |
| In US$/day | | 2016 | | 2015 |
| | Q1 | | Q4 | Q3 | Q2 | Q1 |
| Deepwater offshore vessels | | 17,630 | | 18,360 | 19,518 | 20,286 | 21,942 |
| Shallow water offshore vessels | | 11,967 | | 12,205 | 12,880 | 13,507 | 13,882 |
| Crew boats | | 4,538 | | 4,530 | 4,632 | 4,732 | 4,934 |
| Subsea Services | | 44,119 | | 47,232 | 47,657 | 48,847 | 50,118 |
| "Total fleet excluding Crew boats` average daily
rate | | 16,299 | | 16,809 | 17,858 | 18,640 | 19,301 |
| In number of vessels* | | 2016 | | 2015 |
| | Q1 | | Q4 | Q3 | Q2 | Q1 |
| Marine Services | | 492 | | 488 | 484 | 483 | 479 |
| Deepwater offshore vessels | | 89 | | 88 | 86 | 82 | 79 |
| Shallow water offshore vessels | 133 | 133 | 134 | 138 | 138 |
| Crew boats | 270 | 267 | 264 | 263 | 262 |
| Subsea Services | | 22 | | 22 | 22 | 22 | 21 |
| FLEET TOTAL | | 514 | | 510 | 506 | 505 | 500 |
* Vessels operated by BOURBON (including vessels owned or on bareboat charter).
| In number of vessels | | 2016 | | 2015 |
| | Q1 | | Q4 | Q3 | Q2 | Q1 |
| Marine Services | | 4 | | 5 | 6 | 4 | 0 |
| Deepwater offshore vessels | | 1 | | 2 | 4 | 3 | 0 |
| Shallow water offshore vessels | 0 | 0 | 0 | 0 | 0 |
| Crew boats | 3 | 3 | 2 | 1 | 0 |
| Subsea Services | | 0 | | 0 | 0 | 1 | 0 |
| FLEET TOTAL | | 4 | | 5 | 6 | 5 | 0 |
| In € millions | | 2016 | | 2015 |
| | Q1 | | Q4 | Q3 | Q2 | Q1 |
| Africa | | 186.5 | | 193.3 | 188.7 | 212.5 | 219.8 |
| Europe & Mediterranean/Middle East | | 33.7 | | 45.5 | 53.2 | 57.2 | 59.1 |
| Americas | | 66.4 | | 62.6 | 68.1 | 68.9 | 64.2 |
| Asia | | 27.8 | | 32.9 | 34.1 | 36.6 | 40.5 |
| | | 2016 | | 2015 |
| | | Q1 | | Q4 | Q3 | Q2 | Q1 |
| Average €/US$ exchange rate for the quarter (in €) | | 1.10 | | 1.10 | 1.11 | 1.11 | 1.13 |
| €/US$ exchange rate at closing (in €) | | 1.14 | | 1.09 | 1.12 | 1.12 | 1.08 |
| Average price of Brent for the quarter (in US$/bbl) | | 34 | | 44 | 50 | 62 | 54 |
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 11,000 skilled employees. Through its 34 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 two operating Activities (Marine Services and Subsea Services) and also protects the French coastline for the French Navy.
In 2015, BOURBON`S revenue came to €1,329.6 million and as of March 31, 2016, the company operated a fleet of 515 vessels.
Placed by ICB (Industry Classification Benchmark) in the "Oil Services" sector, BOURBON is listed on the Euronext Paris, Compartment B.
Investor Relations, analysts, shareholders
James Fraser, CFA
+33 491 133 545
james.fraser@bourbon-online.com
Corporate Communications
Christelle Loisel
+33 491 136 732
christelle.loisel@bourbon-online.com
Vilizara Lazarova
+33 144 824 634
vilizara.lazarova@consultants.publicis.fr
PDF version
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions 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
HUG#2009599
