Results that reflect a third year of cyclical downturn and a sharp increase in free cash flow
• Free cash flow rose to €127.8 million, up from €64.7 million in 2016
• Net income, group share stood at -€576.3 million, including €277 million in provisions for asset impairment and non-recurring expenses, €167.2 million of which for the non-smart fleet
- 334 vessels in operation (full-time equivalent) with a utilization rate of 82.4%, stable compared to 83.1% in 2016
- A fall in average daily rates of around $1,000/day
- An increase of 52 units in the number of stacked vessels (full-time equivalent)
- Growing potential for positive free cash flow generation due in particular to a sharp reduction in capital expenditure
- Recognition of impairment losses on the “non-smart” fleet and provisions for doubtful receivables
- The group has decided to close its financial statements with regards to the going concern in light of the trust it has in the outcome of the reopened discussions with financial partners.
“BOURBON's teams carried off a solid operating performance in 2017 thanks to their focus on security, cost control initiatives and the fleet's technical reliability. Performance in terms of free cash flow generation is equally sound in the crisis environment that has faced all oil & gas industry players for the past three years,” said Gaël Bodénès, Chief Executive Officer of BOURBON Corporation. “On the basis of our experience as a leader, we aspire to change our business model for more integrated services, to capitalize on the digital revolution to connect our fleet and to make our new organization less centralized and more agile. Positioning our company to take advantage of the recovery under optimum competitive conditions following the cyclical downturn: this is the essence of our #BOURBONINMOTION strategic plan, presented last month and currently being implemented."