Resilient adjusted revenues in 1st Quarter 2015: €383.6 million, an increase of 15.2% year on year at current rates

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"Following the quick and sharp drop in oil prices in late 2014, the low Brent price environment continued during the 1st quarter 2015 and market conditions remained difficult, while BOURBON’s resiliency factors aided its performance," says Christian Lefèvre, Chief Executive Officer of BOURBON. "BOURBON has proactively responded to both the customers’ requirements for lowering their cost of operation and to the impact of reduced utilization rates on BOURBON operating costs. A number of general agreements have been concluded with key customers on the basis of reciprocity: lower daily rates with better contract coverage and access to market.

This action plan provides BOURBON with higher visibility on its fleet utilization and allows proper planning of stacking/unstacking of vessels in the different regions where it operates, when needed. Proper and temporary stacking of vessels considerably reduces cash operating costs, which in turn reduces the impact of lower activity on adjusted EBITDAR/revenues margin.

There was also a quick and sharp drop of the euro and other currencies against the US dollar and this favorable foreign exchange rate environment positively impacts BOURBON’s adjusted revenues, which will translate into additional adjusted EBITDAR generation in our Euro denominated accounts. Compared with the same period in 2014, the adjusted revenues increase in the 1^st quarter 2015 benefitted from the foreign currency appreciation but was flat at constant exchange rates despite the increase in fleet size."

Christian Lefèvre also points out that "The resilience of 1^st quarter adjusted revenues at constant rates reflects the continued demand for BOURBON’s modern, efficient, standardized vessels. While the current oil price environment continues to impact the activity of oil & gas companies’ capital spending plans, BOURBON is also continuing to focus on its own cost reductions efforts and vessel efficiency to deliver the best service possible to its clients." 

Market impacts on BOURBON performance are reflected by the adjusted revenues reduction when compared to Q4 2014 at constant rates (-5.6%) stemming mainly from:

• Average utilization rate excluding crew boats declining by 3.2 points to 84.3%
• Average daily rate excluding crew boats declining 2.9% and marginal increase in fleet size
• No impact yet of favorable conditions made to customers