Third quarter revenues +21.4% (+13.0% at constant exchange rate)
Revenues up 18.9% over 9 months (+14.0% at constant exchange rate)

Paris, November 7, 2012,


« In a favorable oil and gas services market, BOURBON’s growth is in line with the BOURBON 2015 Leadership Strategy. Average daily rates are rising regularly and apply to an ever growing fleet, », says Christian Lefèvre, BOURBON's Chief Executive Officer. « Revenues from the Shallow water offshore vessels segment are up sharply for the quarter at €92 million, driven by a number of factors such as long-term contracts signed for three Bourbon Liberty 300 vessels in Asia and the Persian Gulf. »

Third quarter 2012 highlights

  • The revenues increase reflects essentially the rapid growth of the Shallow water offshore vessels segment (+49% over the third quarter of 2011, +10% over the second quarter of 2012) and the positive impact of the dollar.
  • The average daily rate for the quarter is up in each of the segments (increase between 1.1% and 3.9% over the second quarter of 2012).
  • Compared with the third quarter of 2011, business is up substantially in Asia (+39.5%), Africa (+25%) and the Americas (+24.6%).

Revenues

Compared with the third quarter of 2011, BOURBON posted revenues of €306.1 million, up 21.4% (+13% at constant exchange rates) owing to the addition of 31 vessels to the fleet. Growth is especially substantial in the Shallow water offshore vessels segment (+49.1%).

Compared with the second quarter of 2012, BOURBON’s revenues were up 5.6%, thanks to the three Marine Services segments, and more particularly to the Shallow water offshore vessels segment (+10%).

Over the first nine months of 2012, revenues rose by 18.9% (+14% at constant exchange rates), with all segments contributing to that growth, and more particularly the Shallow water offshore vessels segment (+40.4%).

MARINE SERVICES

Compared with the third quarter of 2011, revenues from Marine Services grew 27.1% to €254.5 million. That growth is evident in all three segments but is more noticeable in the Shallow water offshore vessels segment.

Compared with the second quarter of 2012, revenues from this Activity were up 6.8%, driven by three high-growth segments.

In the first nine months of 2012, revenues amounted to €715 million, up 24% over the same period in 2011. All three segments were up, with the Shallow water offshore vessels segment posting growth of 40.4%.

Marine Services indicators by segment

  • Deepwater offshore vessels

Compared with the third quarter of 2011, revenues posted by Deepwater offshore vessels for the third quarter of 2012 were up 14% at €93.2 million, owing mainly to the increase in daily rates on part of the fleet and to the impact of the dollar.

Compared with the second quarter of 2012, revenues were up 5.2%. In Africa, BOURBON continues to benefit from the increase in daily rates (in particular, the signing of a new contract in Ghana for a PSV and the renewal of a PSV contract in Nigeria).
In the North Sea, the activity was disappointing over the summer, with relatively low daily rates and utilization rates, mild weather and with the over-capacity of PSV and AHTS vessels increased by new built vessels on the market and the return of the vessels which operated in Brazil.

In the first nine months of 2012, revenues reached €268.2 million, up 16.1% from the same period in 2011, thanks to the increase in daily rates, a better utilization rate and the impact of the dollar.

  • Shallow water offshore vessels

Compared with the third quarter of 2011, third quarter 2012 revenues posted by Shallow water offshore vessels were up sharply (+49.1%) at €91.7 million, driven by the increase in average daily rates (+8.6%), by the growth of the fleet (+10 vessels in 12 months), by the improvement in the average utilization rate (+3.9 points) and by the impact of the dollar.
As a result of BOURBON’s strategic choice to invest in this replacement market, the percentage of revenues accounted for by Shallow water offshore vessels rose further.
Compared with the second quarter of 2012, revenues were up 10.0%, driven by the growth of the fleet, the increase in average daily rates (+3.9%) and the commissioning of three Bourbon Liberty 300 vessels under contract in Thailand and Qatar. It should be noted that the long-term contract signed in Qatar with Maersk Oil, which has unusually high operating standards, points to the future need for replacement vessels equipped with deepwater offshore technology in the Persian Gulf region.

In the first nine months of 2012, revenues reached €245.5 million, up 40.4% over the same period in the prior year. This reflects the commissioning of 9 new Bourbon Liberty vessels over the period, a 6.3% increase in average daily rates, a slight improvement in the average utilization rate (+2 points) and the favorable impact of the dollar.

  • Crewboats

Compared with the third quarter of 2011, third quarter 2012 revenues posted by Crewboats were up 22.2% at €69.7 million, thanks to the significant increase in average daily rates (+11.7%), to the favorable impact of the dollar and to the continued expansion of the fleet.

Compared with the second quarter of 2012, revenues are up 4.8%, thanks to the increase in average daily rates and to the expansion of the fleet.

In the first nine months of 2012, revenues amounted to €201.2 million, up 17.9% over the same period in 2011 owing to the increase in average daily rates (+9.3%), the expansion of the fleet (commissioning of 18 vessels) and the favorable impact of the dollar, despite a reduction in the average utilization rate.

SUBSEA SERVICES

8 classification dry-docks are planned for 2012. Therefore the average utilization rate for the quarter is affected. The delivery of the Bourbon Evolution 802 occurred at the end of September 2012, therefore not impacting third quarterly revenues.

Compared with the third quarter of 2011, third quarter 2012 revenues are up 9.9% at €46.5 million, reflecting the positive full-time effect of adding to the fleet the first IMR vessel of the Bourbon Evolution 800 series as well as the favorable impact of the dollar. On the other hand, the average utilization rate is noticeably down (-8.8 points) because of the planned classification dry-docks.

Compared with the second quarter of 2012, revenues remain stable. Chartering two ROVs (Heavy Duty -3000m type) in the Mediterranean offset the fall in revenues due to planned classification dry-docksZ

In the first nine months of 2012, revenues are up 11.2%. This is due to contrasting changes:

  • on the one hand, to chartering full-time a 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, and to the favorable impact of the dollar;
  • on the other hand, an average utilization rate down 7.2 points owing to the numerous programmed technical planned classification dry-docks.

OTHER

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

Compared with the third quarter of 2011, “Other” revenues were down 47.1%.

In the first nine months of 2012, revenues were down 39.4%.

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 comprehensive 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 %.

More than 60 new drilling rigs should be commissioned during 2013, and the order books of offshore construction companies and subsea production equipment manufacturers are fuller than ever.

In shallow water offshore, speeding up the job of replacing old vessels on the market deemed obsolete seems vital for the oil and gas companies to meet their increasing requirements in terms of risk management.

In deepwater offshore, the international fleet continues to grow, with new vessels commissioned, mainly large PSVs. In line with its strategy of factoring in the risk of over-capacity, BOURBON has little exposure in this market and is focusing on medium-sized vessels, for which there is always a high demand on the global markets.

On the subsea services market, the demand for IMR vessels should be steady, sustained by the planned installations of subsea well heads, the support to contractors and the increase in maintenance operations for existing underwater equipment.

The benefits of BOURBON’s strategic choices are now visible on the market. Standardization, high maneuverability and low fuel consumption are fully recognized by clients. The technical availability rates of the vessels are improving, and training sessions for crews at sea and onshore are now of the highest quality.

BOURBON’s results are affected by the €/US$ exchange rate. Hence BOURBON has engaged in foreign exchange hedging operations to cover the full estimated exposure of the 2012 EBITDA at the €/US$ exchange rate. These forward sales of dollars were implemented at the average exchange rate of 1€ = 1.3070 US$.