Launched in early 2018, the #BOURBONINMOTION strategic action plan is the group's response to the most serious crisis the oil and gas industry has faced in the past 30 years. Enabling us to respond to meet new client demands and the needs for competitiveness, this plan challenges our business models and capitalizes on technology to lower the costs of vessel operation.
BOURBON has become the leader in offshore oil and gas marine services after a long development program marked by major investment in innovative, series-built vessels that provide better control of operations and costs for its clients. With the drop in the price of the barrel of crude in 2014, the oil and gas industry faced its most serious crisis in the last 30 years. The offshore services market was severely affected and contracted by 30 to 40% in 3 years. BOURBON is convinced that today's business model for offshore services will not be the same as tomorrow's, after the crisis. That is why on February 13, 2018, the group launched #BOURBONINMOTION, its strategic action plan that enables it to respond to the needs for competitiveness and to meet new client demands. #BOURBONINMOTION is a unique plan that has no equivalent in the sector.
"I am convinced that this plan is the best means to benefit from the recovery and, beyond that, to seek new market share and grow our margins"GaËL BODÉNÈSCHAIRMAN OF BOURBON MARITIME
Representing a total investment of 75 M€ over 3 years, the plan is structured around 4 priorities:
1/ Transform the business models towards more services
Bourbon Marine & Logistics, Bourbon Mobility et Bourbon Subsea Services are transforming their business models around:
- Integrated services for Bourbon Marine & Logistics,which has won its first integrated logistics contract for Shell in Bulgaria;
- Transformation of the passenger experience for Bourbon Mobility, which offers new services to its clients aboard its Surfers, including access to entertainment via an interactive platform;
- Reasonably-sized turnkey projects and integrated solutions for the clients of Bourbon Subsea Services. In 2018, Bourbon Subsea Services installed the first floating wind turbine of the Kincardine offshore wind farm, Scotland and also won a turnkey contract for the installation of the Windfloat Atlantic wind farm in Portugal.
2/ Adapt the cost structure
The reshape of the cost structure is essentially based on two programs:
- The Smart Shipping program: The ambition of the program is to revolutionize the operational model to improve the quality of services while reducing costs. This program is currently being rolled out and will connect by 2022 the Bourbon Marine & Logistics fleet of over 130 modern supply vessels (the "smart fleet"). Structured around the trio of "vessel, onshore support and a remote support center", the program is based on technological partnerships with key players like Kongsberg, Bureau Veritas, etc.
- The Smart G&A program: The ambition of the program is to adapt the organization and cost structure to the new size of BOURBON (-50% in turnover between 2015 and 2018).
3/ Restore financial leeway
Beyond financial restructuring, the BOURBON group has undertaken the optimization of its financial operation, notably through the creation of shared services centers for the three stand-alone companies (Bourbon Marine & Logistics, Bourbon Mobility and Bourbon Subsea Services). BOURBON also keeps on optimizating its cash flow and the sale of non-strategic assets.
4/ Accompany cultural change
The ambition of this aspect of the #BOURBONINMOTION plan is to develop a company culture that focuses on results, simplification and responsibility.
Please find below the elements published on the occasion of the kick-off conference of #BOURBONINMOTION plan, in February 2018: