2012 revenues: up 17.7%
Gross operating income (EBITDA) €406.2 million, up 35.3%
Operating income (EBIT) €161.6 million, up 89.4%
Paris, March 6, 2013,
“In the context of a favorable oil & gas services market, the growth in BOURBON’s 2012 results illustrates the value of our strategy which is aimed, through our series of innovative series vessels, at meeting our clients’ needs in terms of safety, cost savings, reliability and quality of service. Operating income is up 89.4% thanks to higher daily rates and EBITDA is up in all three of our segments,” says Christian Lefèvre, Chief Executive Officer of BOURBON. “The stability of the price per barrel at around US$110 has encouraged our clients to make substantial investments in a market where growth prospects point to sustained demand for vessels in 2013.”
2012 revenues are up 17.7% over the previous year due to the expansion of the fleet, better daily rates and €/US$ exchange rate. All vessel segments have contributed to this growth, particularly Shallow water offshore (+39.4%).
2012 gross operating income (EBITDA) came to €406.2 million, representing a 35.3% increase over the previous year. This is markedly higher than the increase in revenues due to the improvement in daily rates, a stronger dollar, fleet expansion (albeit less rapid), sustained utilization rates and a capital gain on the sale of 3 vessels. Consequently, EBIT is posting remarkable growth of nearly 90%.
2012 financial income represents a net expense of €87.0 million due to a slight increase in debt and unrealized foreign exchange losses of €27.6 million.
Net income, Group share for 2012 is up sharply to €41.9 million compared to €6.8 million in 2011.
At the next Combined General Meeting scheduled for May 28, 2013, the Board of Directors will propose a dividend of €0.82 per share.
Average utilization rates are holding up well, above the market average. Average daily rates continue to improve as the market rebalances due to strong growth in demand and the trend for replacing old and obsolete vessels. The improvement in average utilization rates in the Shallow water offshore segment, up 2.4 points between 2011 and 2012, validates BOURBON’s strategic decision since 2006 to expand the fleet.
Marine Services revenues in 2012 amounted to €972.2 million, up 22.6% compared to 2011, mainly due to the expansion of the fleet (+21 vessels) and continuing high utilization rates along with an increase in daily rates in all segments, particularly in the Shallow water offshore segment.
From the 1st half to the 2nd half of 2012, revenues increased by 11.1% to €511.8 million due to the expansion of the fleet (+11 vessels), high utilization rates and an increase in average daily rates, particularly in the Shallow water segment.
Compared to the previous year, EBITDA in 2012 is up sharply, by 47.8%, to €327.4 million, +37.3% EBITDA excluding capital gains.
This increase reflects general growth in all 3 segments and the benefit of a stronger dollar during the period. From the 1st half to the 2nd half of 2012, EBITDA was 29.5% higher, due in particular to the performance of the Deepwater offshore vessel segment.
In 2012, the Marine Services activity expanded its range of vessels, particularly the entry into the fleet of the first 6 vessels in the new AHTS Bourbon Liberty 300 series, the first vessel in the latest-generation FSIV series with straight bow and DP2 dynamic positioning, and 2 “large PSV” PX105 with inverted bow equipped with the PG MACS unique cargo system. The commencement of a contract for 3 Bourbon Liberty vessels in Australia illustrates the oil companies’ preference for this series.
Results by segment
- Deepwater offshore vessels
In 2012, revenues from the Deepwater offshore vessels segment were €360.8 million and represented 37.1% of total Marine Services activity. In this segment, BOURBON expanded its fleet by 2 vessels and utilization rates continued their improvement to 91.6%, up 1.8 point relative to 2011. The renewal of several expiring contracts made it possible to take advantage of higher rates in the segment and raise the average daily rate.
EBITDA of €130.8 million (excluding the capital gain) represented 43.1% of the Marine Services activity total compared with 50.0% in 2011. This decrease is due to the growing share of the Shallow water offshore segment in Marine Services. The capital gain which contributed €23.8 million to this segment’s EBITDA was mainly due to the sale of 3 UT 755-type vessels.
Compared with the previous half, revenues in the second half of 2012 were up 6.1% thanks to maintaining a high utilization rate and an increase in the average daily rate.
- Shallow water offshore vessels
In 2012, the revenues generated by the Shallow water offshore segment came to €336.7 million, up strongly (39.4%) year-on-year, thanks to 11 additional vessels, the increase in the utilization rate (89.9%), up 2.4 points, and a sharp increase in the average daily rate.
EBITDA rose to €91.7 million, representing an increase of 51.9% over 2011. BOURBON’s growth strategy in the Shallow water offshore segment is endorsed by its clients who regularly praise the advent of modern vessels equipped with dynamic positioning technology, high maneuverability and diesel-electric propulsion enabling them to reduce their fuel consumption costs.
Compared with the previous half of the year, revenues in the second half were up 18.8% to €182.8 million. This growth was due to 5 additional vessels and to higher average daily rate, leading to an increase in EBITDA of 26.8% compared to the previous six months.
In 2012, revenues generated by the Crewboats segment came to €274.8 million, up 17.9% thanks to 8 additional vessels in the fleet and a steady increase in daily rates, particularly for large vessels.
EBITDA rose to €81.1 million, up 60.6%, due to the increase in daily rates and the improvement in technical cost control in West Africa.
Compared to the previous half of the year, revenues rose 8.8%, to €143.2 million, thanks to higher utilization rates (+1.6 point), a high daily rate and continued expansion of the fleet.
EBITDA was up 5.6%, at €41.6 million, in line with the increased revenues.
In 2012, the revenues of the Subsea Services Activity rose to €190 million, up 10.0% over the previous year, due to the full operation of the first vessel in the Bourbon Evolution 800 series, the second one entering the fleet and the improvement in daily rates, despite 8 planned classification dry-docks over the year which affected over 40% of the fleet and had a negative impact of 4.3 points on the average utilization rate.
Although up 8.0%, to €72.9 million, EBITDA for this activity in 2012 was particularly impacted by periods of planned classification dry-docks not generating any revenues to offset the fixed costs.
Compared with the 1st half of 2012, revenues were up 6.2% due to the second Bourbon Evolution 800 joining the fleet. EBITDA was 8.9% higher and the ratio of “EBITDA/Revenues” continued to improve.
"Other" mainly includes the activity of the cement carrier Endeavor, offshore vessels chartered externally which are not operate by BOURBON, as well as items not allocated to the other two Activities. The decline in revenues and EBITDA reflects the slowdown in external chartering in the Offshore activities.
In a public presentation today, BOURBON will announce an action plan called “Transforming for beyond” to prepare now and pave the way for the Group’s further growth beyond 2015.
The financial aspect of this plan consists of the disposal of vessels for a total amount of US$2.5 billion during 2013/2014 and the bareboat charter of those vessels for 10 years.
In a growing oil & gas services market, BOURBON will continue to mark its competitive advantage by taking delivery of 45 new vessels in 2013, across all segments, by concentrating on the existing series.
All the growth indicators regarding demand for vessels are excellent, whether for drilling, construction and commissioning fields, or installing subsea well heads.
Regarding the supply of vessels, fewer vessels will be exiting the shipyards, except for the deepwater offshore PSV market, in which, at the end of 2012 BOURBON had a long-term contractualization rate of 81% and an average residual duration of firm charter agreements of 13 months. In parallel, the replacement of old shallow water offshore vessels will be accelerated.
BOURBON took the decision to commit €500 million in the coming months for 41 new vessels in the various existing series as the final investments due under the BOURBON Leadership Strategy 2015 plan.
In this context, with a fleet strategically based on midsized Deepwater offshore vessels and high-end Shallow water offshore vessels, BOURBON will further consolidate its positions and benefit from growth in the sector’s activity.
- The 2012 financial statements were closed by the Board of Directors on March 04, 2013.
- The auditing procedures have been completed and the audit report relating to certification is in the process of being issued.