2012 revenues: up 17.7% to 1.187 billion euros
4th quarter 2012 revenues up 14.5%

Paris, February 6, 2013,


“In a favorable oil and gas services market, BOURBON’s growth is in line with the BOURBON 2015 Leadership Strategy plan. Average daily rates are still in a suitable range,” says BOURBON’s Chief Executive Officer Christian Lefèvre. “Our positioning in the deepwater mid-sized vessel market and high-end shallow water vessel market (diesel-electric and DP2 dynamic positioning) is paying off. The stability of the Brent price per barrel (US$ 110 on average in the last quarter of 2012) is helping to bolster major investments by our clients and hence the demand for vessels in the upcoming quarters.
Under these conditions, backed by its growing modern fleet of standardized, innovative vessels with an average age of 6 years, BOURBON is set to reap the full benefits of an offshore vessel market that is expected to improve even further in 2013.”

2012 Highlights

  • A steadily growing market in 2012, particularly in Asia (+33.1%, primarily in Australia) and Africa (+19.3%) featuring the gradual increase in average utilization rates and average daily rates.
  • This growth is especially strong in the Shallow water offshore vessels segment (+ 39.4%) thanks to the increase in average daily rate, the addition of new vessels to the fleet and the favorable impact of the dollar.
  • A dollar impact proving favorable over the year but unfavorable from one quarter to another.

Revenues

Compared with the fourth quarter of 2011, BOURBON posted revenues of 312.8 million euros, up 14.5% (+11.5% at constant exchange rates) owing to the addition of 33 vessels to the fleet, to the increase in average daily rates and to a favorable dollar effect.
Growth is especially substantial in the Shallow water offshore vessels segment (+36.8%).

Compared with the third quarter of 2012, BOURBON’s revenues were up 2.2% (+3.2% at constant exchange rates).

For the full year 2012, revenues rose by 17.7% (+13.7% at constant exchange rates) and +20.3% excluding the segment "Other" with all segments contributing to that growth, and more particularly the Shallow water offshore vessels segment (+39.4%).

MARINE SERVICES

Compared with the fourth quarter of 2011, Marine Services revenues were 18.8% higher at 257.2 million euros. This growth is especially noticeable in the Shallow water vessels segment (9 additional vessels entered in service over the period) and the Crewboats segment (20 additional vessels entered in service over the period).

Compared with the third quarter of 2012, revenues for this Activity were up 1.1%.

For the full year 2012, revenues amounted to 972.2 million euros, up 22.6% from 2011.

Marine Services indicators by segment

  • Deepwater offshore vessels

Compared with the fourth quarter of 2011, fourth quarter 2012 revenues posted by Deepwater offshore vessels were up 5.8% to 92.6 million euros, buoyed by high rates and the full-time effect of two new vessels, despite a decline in the utilization rate in the North Sea market.

Compared with the third quarter of 2012, revenues dipped by a slight 0.6%, affected in part by the planned classification dry-dock of 4 vessels and by the dollar effect.
In the North Sea, despite the fact that demand for offshore vessels was up, average utilization rate and average daily rate were impacted by the over-capacity of PSV and AHTS vessels, which was exacerbated by the addition of newly built vessels to the market and the return of vessels that previously operated in Brazil.

For the full year 2012, revenues reached 360.8 million euros, up 13.3% from the same period in 2011, thanks to the increase in average daily rate of part of the fleet and the impact of the dollar.

  • Shallow water offshore vessels

Compared with the fourth quarter of 2011, fourth quarter 2012 revenues posted by Shallow water offshore vessels were up sharply (+36.8%) at 91.1 million euros, driven by the success of the Bourbon Liberty vessels, as reflected by the increase in average daily rates (+12.4%), the growth of the fleet (9 vessels delivered in twelve months), and the improvement in the average utilization rate (+3.9 points).

Compared with the third quarter of 2012, revenues were slightly down despite the improved utilization rate (+1.9 point), owing mainly to the dollar effect and to a very slight decrease in average daily rates.

For the full year 2012, revenues over the prior year rose sharply to 336.7 million euros, an increase of 39.4%, compared with the 12% growth in the number of vessels. This reflects the 8.6% increase in average daily rates, the continued improvement in the average utilization rate (+2.4 points) and the favorable impact of the dollar.

  • Crewboats

Compared with the fourth quarter of 2011, fourth quarter 2012 revenues posted by Crewboats were up 17.8% at 73.5 million euros, thanks to the significant increase in average daily rates, to the favorable impact of the dollar and to the continued expansion of the fleet.

Compared with the third quarter of 2012, revenues were 5.5% higher due to the improvement in utilization rates (+4.1 points).

For the full year 2012, revenues amounted to 274.8 million euros, up 17.9% over the same period in 2011 owing to the increase in average daily rates (+11.1%), the expansion of the fleet (20 new vessels in service) and the favorable impact of the dollar, despite a reduction in the average utilization rate.

SUBSEA SERVICES

Compared with the fourth quarter of 2011, fourth quarter 2012 revenues rose 6.8% to 51.4 million euros, buoyed by the full-time effect of the addition to the fleet of the second vessel in the Bourbon Evolution series and by the favorable impact of the dollar. The average utilization rate is slightly up (+0.7 point), while the average daily rate is up 13.2%.

Compared with the third quarter of 2012, revenues are up 10.5%, buoyed by the addition of one new vessel in the Bourbon Evolution 800 series and the return to full operation of 4 vessels after planned classification dry-docks.

For the full year 2012, revenues are up 10.0%. This is due to contrasting changes:

  • on the one hand, to the full-time chartering of one large IMR vessel, to contract renewals for medium to large-sized vessels under long-term contracts at more favorable rates with a positive influence on average daily rates, to the favorable impact of the dollar, and to the addition to the fleet of the Bourbon Evolution 802, which took full effect during the last quarter.
  • on the other hand, to an average utilization rate down 5.1 points owing to 8 planned classification dry-docks in 2012 (44% of the total fleet).

OTHER

Many vessels directly owned by BOURBON were added to the fleet to replace chartered vessels.

Compared with the fourth quarter of 2011, “Other” revenues were down 51.0%.

For the full year 2012, revenues were down 41.7%.

Using chartered vessels has two advantages for BOURBON: it makes it possible to meet client demands and generate contracts pending the time new vessels are built and added to the fleet. Using chartered vessels also enables BOURBON to offer vessels not part of its regular line of services under global calls for tenders.

OUTLOOK

In 2013, the demand for offshore vessels is expected to be steady, buoyed by investments by oil and gas company clients which are expected to rise by around 13%, and by the expected arrival on the market of 76 new drilling rigs. The order books of offshore construction companies and subsea production equipment manufacturers are fuller than ever.

BOURBON is set to take delivery around 47 vessels during the year in this booming market.

BOURBON will present its 2012 results on March 6, 2013.

OTHER INFORMATION

On November 30, BOURBON sold 3 Platform Supply Vessels built in 2004 with a five-year bareboat charter agreement. This sale generated capital gains of approximately 22 million euros.
This deal reflects BOURBON’s aim to standardize its fleet with recent series and built in series.