Revenues up 10.5% vs. full year 2012 to €1.312 billion and up 6.0% vs. 4th quarter 2012 to €331.6 million impacted by US Dollar depreciation against the Euro

Paris, February 5, 2014,

  • Annual Revenues up 10.5% partly due to a 5.9% increase in the size of the fleet and a positive offshore demand environment
  • Utilization rate of the fleet remains at a high level at 89.5% (-0.9 pts compared with 2012), despite the increase in the size of the fleet, impacted by the transit of some vessels in order to adapt to regional market conditions
  • Average daily rates continue to increase regularly for supply and subsea vessels (+3.8%) as well as for crewboats (+7.1%)
  • Foreign currency movements versus the Euro in 2013 (most notably versus the US Dollar) impacted revenue growth in both the full year 2013 (-2.6 pts) and 4th quarter (-3.3 pts) compared with the corresponding periods in 2012
  • Revenues in the 4th quarter were stable at €331.6 million compared to the previous quarter (-0.3%) as new vessel deliveries had little impact on the quarter, all having been delivered during the 2nd half of the quarter and the previously announced sale of three older vessels, which had almost no revenues during the quarter
In millions of euros. except as noted Quarter Full Year
T4 2013 T4 2012 Var. 2013 / 2012 T3 2013 2013 2012 Var. 2013 / 2012
Marine Services 270,3 257,2 +5,1% 267,0 1 064,7 972,2 +9,5%
Deepwater offshore vessels 95,7 92,6 +3,3 100,6 391,6 360,8 +8,5%
Shallow water offshore vessels 100,0 91,1 +9,7% 93,0 376,0 336,7 +11,7%
Crewboats 74,7 73,5 +1,6% 73,4 297,2 274,8 +8,2%
Subsea Services 55,4 51,4 +7,8% 58,9 223,3 190,0 +17,5%
Other 5,8 4,2 +40,2% 6,5 24,0 24,7 -2,8%
GROUP TOTAL 331,6 312,8 +6,0% 332,4 1 311,9 1 186,9 +10,5%
Number of vessels (end of period) * 485 458 +27 navires 479 485 458 +27 navires
Average utilization rate excl. Crewboats 90,1% 91,4% -1,3 pt 90,0% 89,5% 90,4% -0,9 pt
Average daily rate excl. Crewboats (in US$/d) 19 329 19 097 +1,2% 19 573 19 447 18 743 +3,8%

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

"2013 revenues of more than €1.3 billion, a complete range of 485 vessels with an average age of 6.2 years and the broad geographical reach of its activities makes BOURBON a leader in the offshore marine services industry”, says Christian Lefèvre, Chief Executive Officer of BOURBON. “Stability of utilization rates and a positive trend in annual average daily rates are solid fundamentals in a context of continued fleet growth with 38 new vessel deliveries for a net increase in the fleet of 27 vessels in 2013.

BOURBON continues its focus on operational excellence and debt reduction via the Transforming for beyond action plan. The asset smart portion of this action plan is progressing well with the sale and bareboat charter of 24 vessels during 2013, the proceeds from which are primarily aimed at reducing debt.”

OPERATIONAL HIGHLIGHTS

MARINE SERVICES

  • Operational excellence continues to be an industry driver strengthened by the deployment of the OCIMF (Oil Companies International Marine Forum) vessel vetting system

Deepwater offshore

  • Activity remained high driven by a large number of exploration and development projects throughout the year
  • Annual increases in day rates were partly due to certain contract renewals coming in at higher daily rates in West Africa and Latin America
  • BOURBON’s fleet was stable overall in 2013 with deliveries of new vessels offset by the sale of older vessels
  • During 2013, utilization rates were impacted by the transit of vessels to adapt to market conditions and in the 4th quarter, seasonal effects negatively impacted North Sea activities

Shallow water offshore

  • The shallow water market continues to see the benefits of the replacement of older vessels as clients are seeking modern and efficient vessels to work for their new jack-up rigs
  • Average utilization rates remained stable year on year despite double the number of new vessel deliveries in 2013, partly due to certain contract extensions and new contracts
  • In general, average daily rates increased in all regions, especially in Latin America and Mediterranean/Middle East/India (“MMI”). They have been impacted by a regional mix effect due to the end of contracts in Australia and Brazil (where average daily rates and running costs are higher than in other regions)
  • In the 4th quarter, the typical seasonal effects of the monsoons in Asia have not impacted BOURBON as most of the fleet has been fixed on long term contracts

Crewboats

  • Activity has been stable throughout the year
  • FSIV vessels showing high utilization rates for 2013 with positive feedback from clients, positively impacting average daily rates

SUBSEA SERVICES

  • Improved activity due to the continued increase in number of wellhead installations with almost 600 wellheads ordered by the industry in 2013, a growth of approximately 40% over the prior year
  • Continued increase in average daily rates during 2013 reflects the combination of improving demand and better terms on contract renewals
  • During 2013, one new MPSV was delivered in the 1st quarter and as previously announced, an older MPSV was sold in the 4th quarter

MARINE SERVICES

 

Quarter

Full Year

 

Q4 2013

Q4 2012

∆ Q4 2013 / Q4 2012

Q3 2013

2013

2012

∆ Q4 2013 / Q4 2012

Revenues (in millions of euros)

270.3

257.2

+5.1%

267.0

1,064.7

972.2

+9.5%

Number of vessels (end of period)*

466

439

+27 vessels

459

466

439

+27 vessels

Average utilization rate

83.3%

86.0%

-2.7 pts

82.4%

83.0%

83.9%

-0.9 pt

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

Marine Services revenues were up 9.5% in 2013 compared with 2012 and up 5.1% year on year in the 4th quarter, primarily due to an addition of new vessels into the fleet and a positive offshore demand environment. The reduced utilization rate both in the quarter and for the full year period, partly due to the movement of vessels between regions, were offset by improved average daily rates, most notably in the Deepwater and Crewboat segments. In addition, there was an impact on each of the Marine Services segments from the change in consolidation scope that became effective on January 1, 2013.

Marine Services indicators by segment

Deepwater offshore vessels

 

Quarter

Full Year

 

Q4 2013

Q4 2012

∆ Q4 2013 / Q4 2012

Q3 2013

2013

2012

∆ Q4 2013 / Q4 2012

Revenues
(in millions of euros)

95.7

92.6

+3.3%

100.6

391.6

360.8

+8.5%

Number of vessels
(end of period)*

72

72

no change

71

72

72

no change

Average utilization rate

90.1%

90.2%

-0.1 pt

88.8%

88.9%

91.6%

-2.7 pts

Average daily rate (in US$/day)

22,241

21,074

+5.5%

22,683

22,156

20,683

+7.1%

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

For both the 4th quarter and full year 2013, revenues increases were achieved partly due to higher average daily rates being offset by reduced utilization rates. For the full year 2013, an increase in transit time impacted utilization rates as BOURBON moved some vessels in order to adapt to market conditions. Higher average daily rates for the full year 2013 compared with 2012 were partly due to a strong summer in the North Sea market, renewal of contracts on some medium and large PSVs and a mix effect (daily rates vary depending upon the size of the vessel) with the delivery of 4 large PSVs early in the year. Winter seasonal effects weighed heavily on the average daily rates in the North Sea in the 4th quarter 2013 compared to the prior quarter.

Shallow water offshore vessels

 

Quarter

Full Year

 

Q4 2013

Q4 2012

∆ Q4 2013 / Q4 2012

Q2 2013

2013

2012

∆ Q4 2013 / Q4 2012

Revenues
(in millions of euros)

100.0

91.1

+9.7%

93.0

376.0

336.7

+11.7%

Number of vessels
(end of period)*

122

102

+20 vessels

117

122

102

+20 vessels

Average utilization rate

90.2%

92.2%

-2.0 pts

90.2%

89.8%

89.9%

-0.1 pt

Average daily rate (in US$/day)

14,013

14,257

-1.7%

13,728

13,978

13,918

+0.4%

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

The fleet grew by almost 20% in 2013 while revenues grew by 11.7%, due to the regional effect as most of the new shallow water vessels were allocated to Asia and MMI Regions, where average daily rates are lower than in other regions, as are operating costs. Compared with the 3rd quarter, revenues in the 4th quarter were up 7.5% mainly due to the increase of the fleet by 5 vessels and an increase in average daily rates mainly in Asia, MMI and Latin America. Utilization rates for the year were stable at a high level despite the delivery of one new shallow water vessel every 18 days, on average.

Crewboats

 

Quarter

Full Year

 

Q4 2013

Q4 2012

∆ 2013 / 2012

Q3 2013

2013

2012

∆ 2013 / 2012

Revenues
(in millions of euros)

74.7

73.5

+1.6%

73.4

297.2

274.8

+8.2%

Number of vessels
(end of period)

272

265

+7 vessels

271

272

265

+7 vessels

Average utilization rate

78.4%

82.5%

-4.1 pts

77.5%

78.7%

79.6%

-0.9 pt

Average daily rate (in US$/day)

5,309

4,987

+6.5%

5,204

5,198

4,852

+7.1%

Revenues increased with a mixed impact of increasing average daily rates partly offset by reduced utilization rates for both the 4th quarter and full year compared with the prior year period. The average daily rates increased partly due to a mix effect with the larger vessels in the Crewboat segment having higher utilization rates than the smaller vessels in this segment.

SUBSEA SERVICES

 

Quarter

Full Year

 

Q4 2013

Q4 2012

∆ 2013 / 2012

Q3 2013

2013

2012

∆ 2013 / 2012

Revenues
(in millions of euros)

55.4

51.4

+7.8%

58.9

223.3

190.0

+17.5%

Number of vessels
(end of period)*

18

18

no change

19

18

18

no change

Average utilization rate

89.2%

91.7%

-2.5 pts

93.6%

90.2%

88.1%

+2.1 pts

Average daily rate (in US$/day)

43,120

39,064

+10.4%

41,331

41,190

38,497

+7.0%

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

Full year revenues increased more than 17% compared with 2012 with increases in both utilization rates and average daily rates. 4th quarter revenues increased 7.8% year on year with partly offsetting impacts of higher average daily rates and reduced utilization rates, while there was a negative impact on revenues from the sale of an MPSV at the beginning of the quarter. Average daily rate increases were partly due to continued demand for the vessels as well as a positive vessel mix effect. Utilization rates in the 4th quarter were impacted by maintenance and classification drydocks, as well as the transit of 2 MPSV vessels to new operational areas.

Other

 

Quarter

Full Year

 

Q4 2013

Q4 2012

∆ 2013 / 2012

Q3 2013

2013

2012

∆ 2013 / 2012

Revenues
(in millions of euros)

5.8

4.2

+40.2%

6.5

24.0

24.7

-2.8%

Using chartered vessels has two advantages for BOURBON: it makes it possible to meet client demands and generate contracts while new vessels are being built and added to the fleet. Using chartered vessels also enables BOURBON to offer vessels that are not part of its regular line of services when needed for global calls for tenders. Volatility of “Other” revenues is largely due to the variation in the number of chartered vessels during the period.

OUTLOOK

The demand for offshore vessels is growing, helped by a relatively stable oil price during the past several years.

Deepwater offshore vessel demand growth continues, driven by large projects and the exploration programs in remote and extreme locations. The high number of large PSVs coming out of the shipyards could negatively affect the spot market. This should have only a small impact on BOURBON, taking into account the high contractualisation rate of it PSVs.

The demand in the shallow water offshore market continues to be driven more than ever by the renewal of the fleet and operational excellence. In this segment, BOURBON will consolidate its leadership on the strength of its more than 100 Bourbon Liberty series ships with diesel electric propulsion and DP2 (Dynamic Positioning 2), which offers it's clients operational safety and fuel savings.

The Subsea services market was buoyed by the growing number of subsea wellheads and the development of new deepwater oil fields. 3 of the 5 vessels in the Bourbon Evolution 800 series that will be delivered in 2014 are already contracted.

ACTIVE FLEET MANAGEMENT

In line with the Transforming for beyond Asset Smart action plan, a total of 21 vessels were transferred to ICBCL during 2013, as part of the sale and bareboat charter agreement for up to 51 vessels signed with ICBCL on April 9, 2013. The transfer of the remaining maximum 30 vessels should take place during the first half of 2014.

In addition, at the end of November 2013, BOURBON signed an agreement with Standard Chartered Bank (“SCB”) for the sale and bareboat charter of 6 new build vessels. The ownership of 3 vessels has been transferred and the remaining 3 vessels will be delivered to SCB during the second half of 2014.

In addition to vessel disposals in line with the Transforming for beyond action plan, BOURBON sold 7 older vessels, including 2 AHTS (Anchor Handling Tug Supply) vessels which the company continues to operate under a bareboat charter agreement, 2 AHTS vessels sold without a bareboat charter, a tug, an MPSV (Multi-Purpose Supply Vessel) from the Subsea Services fleet and a PSV (Platform Supply Vessel).

CHANGE IN BOURBON CONSOLIDATION SCOPE

As of January 1, 2013, certain companies that were previously consolidated proportionally have been fully consolidated. The impact of this change in consolidation scope is not significant for the Group. Consequently, and in accordance with regulations, no pro forma financial statements have been established for the current period.

For information, the table below shows comparative revenue information:

In millions of euros

4th Quarter

12 months

2013

331.6

1,311.9

2012 restated

323.0

1,226.6

Change

+2.7%

+7.0%

2012 restated at 2013 constant rate

312.7

1,197.4

Change at constant rate

+6.0%

+9.6%

ADDITIONAL INFORMATION

  • While there was some hedging activity in the first half of 2013, since the beginning of the 3rd quarter of this year, BOURBON no longer has any hedging in place. At constant exchange rates, 4th quarter 2013 revenues rose 9.3% compared with the same period last year while revenues for full year 2013 rose 13.1% compared with 2012
  • BOURBON’s results will continue to be affected by the €/US$ exchange rate

APPENDIX

Quarterly revenue breakdown

In millions of euros

2013

2012

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Marine Services

270.3

267.0

268.7

258.5

257.2

254.5

238.4

222.1

Deepwater offshore vessels

95.7

100.6

102.3

93.0

92.6

93.2

88.5

86.5

Shallow water offshore vessels

100.0

93.0

90.1

92.8

91.1

91.7

83.4

70.5

Crewboats

74.7

73.4

76.3

72.8

73.5

69.7

66.4

65.1

Subsea Services

55.4

58.9

57.3

51.6

51.4

46.5

46.4

45.7

Other

5.8

6.5

6.7

4.9

4.2

5.1

5.2

10.2

GROUP TOTAL

331.6

332.4

332.8

315.1

312.8

306.1

290.0

278.0

Quarterly average utilization rates for the BOURBON offshore fleet

In %

2013

2012

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Marine Services

83.3

82.4

82.4

83.9

86.0

83.4

83.9

83.7

Deepwater offshore vessels

90.1

88.8

90.0

86.6

90.2

92.1

91.3

92.5

Shallow water offshore vessels

90.2

90.2

89.1

89.8

92.2

90.3

92.5

84.3

Crewboats

78.4

77.5

77.7

80.8

82.5

78.4

78.6

81.0

Subsea Services

89.2

93.6

88.0

90.6

91.7

85.2

89.7

85.7

"Total fleet excluding Crewboats"

90.1

90.0

89.3

88.7

91.4

90.5

91.8

87.6

"Total fleet" average utilization rate

83.5

82.9

82.6

84.2

86.2

83.5

84.0

83.7

Quarterly average daily rates for the BOURBON offshore fleet

In US$/day

2013

2012

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Deepwater offshore vessels

22,241

22,683

22,092

21,392

21,074

20,702

20,480

20,011

Shallow water offshore vessels

14,013

13,728

13,850

14,315

14,257

14,308

13,773

13,290

Crewboats

5,309

5,204

5,122

5,034

4,987

4,923

4,763

4,447

Subsea Services

43,120

41,331

40,644

40,405

39,064

38,991

38,018

38,181

"Total fleet excluding Crewboats" average daily rate

19,329

19,573

19,458

19,427

19,097

18,883

18,526

18,309

Quarterly deliveries of vessels

In number of vessels

2013

2012

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Marine Services

10

9

9

9

5

13

6

8

Deepwater offshore vessels

1

0

1

1

1

0

2

0

Shallow water offshore vessels

5

8

4

3

1

4

1

3

Crewboats

4

1

4

5

3

9

3

5

Subsea Services

0

0

0

1

0

1

0

0

FLEET TOTAL

10

9

9

10

5

14

6

8

Yearly revenue breakdown

In millions of euros

Full Year

2013

2012

Marine Services

1 064.7

972.2

Deepwater Offshore profond

391.6

360.8

Shallow water offshore vessels

376.0

336.7

Crewboats

297.2

274.8

Subsea Services

223.3

190.0

Other

24.0

24.7

GROUP TOTAL

1,311.9

1,186.9

Yearly average utilization rates for the BOURBON offshore fleet

In %

Full Year

2013

2012

Marine Services

83.0

83.9

Deepwater offshore vessels

88.9

91.6

Shallow water offshore vessels

89.8

89.9

Crewboats

78.7

79.6

Subsea Services

90.2

88.1

“Total fleet excluding Crewboats”

89.5

90.4

“Total fleet” average utilization rate

83.3

84.1

Yearly average daily rates for the BOURBON offshore fleet

In US$/day

Full Year

2013

2012

Deepwater offshore vessels

22,156

20,683

Shallow water offshore vessels

13,978

13,918

Crewboats

5,198

4,852

Subsea Services

41,190

38,497

“Total fleet excluding Crewboats” average daily rate

19,447

18,743

Yearly deliveries of vessels

In number of vessels

Full Year

2013

2012

Marine Services

37

32

Deepwater offshore vessels

3

3

Shallow water offshore vessels

20

9

Crewboats

14

20

Subsea Services

1

1

FLEET TOTAL

38

33

Breakdown of BOURBON revenues by geographical region

In millions of euros

4th Quarter

Full Year

Q4 2013

Q4 2012

Change

2013

2012

Change

Africa

186.1

188.2

-1.1%

750.4

729.2

+2.9%

Europe & Mediterranean/Middle East

56.7

54.9

+3.2%

228.0

201.1

+13.4%

Americas

46.7

36.0

+29.8%

187.5

146.3

+28.2%

Asia

42.0

33.6

+25.0%

145.9

110.3

+32.3%

Other key indicators

Quarterly breakdown
 

2013

2012

 

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Average €/US$ exchange rate for the quarter (in €)

1.36

1.32

1.31

1.32

1.30

1.25

1.28

1.31

€/US$ exchange rate at closing (in €)

1.38

1.35

1.31

1.28

1.32

1.29

1.26

1.34

Average price of Brent for the quarter (in US$/bbl)

109

110

102

112

110

109

108

119

Annual breakdown
 

Full Year

 

2013

2012

Average 12-month €/US$ exchange rate in (€)

1.33

1.28

€/US$ exchange rate at closing (in €)

1.38

1.32

Average 12-month price of Brent (in US$/bbl)

109

112