BOURBON: Financial informations 3rd quarter and 9 months 2018
Marseilles, November 8, 2018
Bourbon Financial information 3rd quarter and 9 months 2018
Adjusted revenues for the 3rd quarter recorded a slight rise of 2.6% compared to the previous quarter (consolidated revenues up 4.1%)
| Adjusted revenues amounted to €173.5 million (€160.2 million on a consolidated basis), reflecting the positive impact of new Subsea contracts including turnkey projects in Offshore wind, which demonstrate the ongoing transformation of business models. Business was up slightly in the 3rd quarter of 2018, following 4 consecutive quarters of decline. Average utilization rates were stable at 51.6%, compared to 52.5% in the 2nd quarter of 2018. Average daily rates held up, despite vessel overcapacity and gradual renewal of long-term contracts at persistently low "market" rates. |
| Quarter | 9 months | ||||||
| In € millions, unless otherwise noted | Q3 2018 | Q2 2018 | Change Q3 / Q2 | Q3 2017 | 2018 | 2017 | Change 2018/2017 |
| Financial performance | |||||||
| Adjusteda revenues | 173.5 | 169.2 | +2.6% | 204.3 | 513.7 | 663.7 | -22.6% |
| (change at constant rate) | +2.2% | -14.6% | |||||
| Bourbon Marine & Logistics | 87.0 | 89.9 | -3.3% | 97.7 | 269.3 | 311.0 | -13.4% |
| Bourbon Mobility | 46.3 | 47.1 | -1.6% | 51.4 | 141.6 | 165.2 | -14.3% |
| Bourbon Subsea Services | 37.9 | 30.2 | +25.5% | 52.1 | 95.4 | 176.5 | -46.0% |
| Others | 2.3 | 1.9 | +21.6% | 3.0 | 7.4 | 11.0 | -33.0% |
| IFRS 11 impact *** | (13.4) | (15.2) | (11.9) | (41.9) | (51.7) | ||
| Consolidated revenues | 160.2 | 153.9 | +4.1% | 192.4 | 471.7 | 612.1 | -22.9% |
| | |||||||
| Operational indicators | |||||||
| Number of vessels (FTE)* | 498.5 | 502.9 | -0.9% | 511.0 | 502.8 | 512.0 | -1.8% |
| Average utilization rate (%) | 51.6 | 52.5 | -0.9 pt | 53.4 | 52.3 | 53.7 | -1.4 pt |
| Average daily rate ($/d) | 7,854 | 7,786 | +0.9% | 8,668 | 7,947 | 8,897 | -10.7% |
| * FTE: Full Time Equivalent | |||||||
"In this 3rd quarter of 2018, we continued to make every effort with our teams and partners to control our costs while maintaining our operational performance and revenues. More than ever before, we are adapting and transforming to remain a leader on our markets," declared Gaël Bodénès, Chief Executive Officer of Bourbon Corporation.
(a) Adjusted data:
The adjusted financial information is presented by Activity and by Segment based on the internal reporting system and shows internal segment information used by the principal operating decision-maker to manage and measure the performance of Bourbon (IFRS 8). Internal reporting (and thus the adjusted financial information) records the performance of operational joint ventures on which the group has joint control using the full integration method. Furthermore, internal reporting (and again the adjusted financial information) does not take into account IAS 29 (Financial Reporting in Hyperinflationary Economies), applicable for the first time in 2017 (retroactively from January 1) to an operational joint venture in Angola.
Bourbon MARINE & LOGISTICS
| Quarter | 9 months | ||||||
| In € millions, unless otherwise noted | Q3 2018 | Q2 2018 | Change Q3 / Q2 | Q3 2017 | 2018 | 2017 | Change 2018/2017 |
| Financial performance | |||||||
| Adjusteda revenues | 87.0 | 89.9 | -3.3% | 97.7 | 269.3 | 311.0 | -13.4% |
| Deepwater offshore vessels | 52.4 | 55.0 | -4.7% | 59.9 | 164.7 | 197.0 | -16.4% |
| Shallow water offshore vessels | 34.6 | 35.0 | -1.1% | 37.8 | 104.6 | 114.0 | -8.3% |
| Operational indicators | |||||||
| Number of vessels (FTE)* | 213.1 | 215.8 | -1.3% | 220.0 | 215.3 | 221.0 | -2.6% |
| Average utilization rate (%) | 51.0 | 51.6 | -0.6 pt | 50.2 | 51.6 | 48.1 | +3.5 pts |
| Deepwater offshore vessels | 60.4 | 63.0 | -2.6 pts | 62.2 | 62.5 | 61.1 | +1.4 pt |
| Shallow water offshore vessels | 44.4 | 43.9 | +0.5 pt | 42.1 | 44.2 | 39.2 | +5.0 pts |
| Average daily rate ($/d) | 10,128 | 10,360 | -2.3% | 11,082 | 10,465 | 11,843 | -11.6% |
| Deepwater offshore vessels | 12,705 | 12,873 | -1.3% | 13,781 | 13,009 | 14,687 | -11.4% |
| Shallow water offshore vessels | 7,709 | 7,924 | -2.8% | 8,371 | 8,027 | 8,856 | -9.4% |
| * FTE: Full Time Equivalent | |||||||
Bourbon Marine & Logistics recorded a decrease in revenues of 3.3% (-3.9% at constant rates) compared with the 2nd quarter, impacted by a volatile market still characterized by low prices. Renewed growth in the number of tenders observed in the 2nd quarter was borne out and Bourbon won new exploration contracts, particularly in Mexico, Nigeria, Angola and the Middle East.
Average utilization rates remained relatively stable (0.6 points lower than in the previous quarter), with the decline in deepwater offshore vessel rates linked mainly to the cancelling of 3 Bourbon Explorer charters in Angola. Other regions remained stable. It should be noted that these 3 deepwater offshore vessels were repositioned on long-term contracts in Angola and Nigeria as of November 1, 2018.
Average daily rates fell by 2.3%, reflecting downward negotiations with a national company, while also illustrating the gradual renewal of long-term contracts at market rates that remain low overall.
Bourbon MOBILITY
| Quarter | 9 months | ||||||
| In € millions, unless otherwise noted | Q3 2018 | Q2 2018 | Change Q3 / Q2 | Q3 2017 | 2018 | 2017 | Change 2018/2017 |
| Financial performance | |||||||
| Adjusteda revenues | 46.3 | 47.1 | -1.6% | 51.4 | 141.6 | 165.2 | -14.3% |
| Operational indicators | |||||||
| Number of vessels (FTE)* | 265.4 | 266.8 | -0.5% | 269.0 | 267.1 | 269.0 | -0.7% |
| Average utilization rate (%) | 51.8 | 53.8 | -2.0 pts | 55.1 | 53.3 | 57.6 | -4.3 pts |
| Average daily rate ($/d) | 4,285 | 4,326 | -0.9% | 4,453 | 4,355 | 4,427 | -1.6% |
| * FTE: Full Time Equivalent | |||||||
In the 3rd quarter of 2018, Bourbon Mobility reported a 1% drop in revenues from the 2nd quarter at constant exchange rates, after an encouraging first half. Business was impacted by a two-point decline in utilization rates and continued volatility in average daily rates, which struggled to stabilize compared with the previous quarter (-0.9%). However, significant contracts have also been renewed for 2019.
The utilization rate was impacted by the end of Crew boat operations in Cameroon in June and a higher level of maintenance and repairs activity than in the previous quarter, particularly among large "crewliner" vessels (long-distance transport), which saw very intense activity in the Gulf of Guinea during the 1st half.
Bourbon SUBSEA SERVICES
| Quarter | 9 months | ||||||
| In € millions, unless otherwise noted | Q3 2018 | Q2 2018 | Change Q3 / Q2 | Q3 2017 | 2018 | 2017 | Change 2018/2017 |
| Financial performance | |||||||
| Adjusteda revenues | 37.9 | 30.2 | +25.5% | 52.1 | 95.4 | 176.5 | -46.0% |
| Operational indicators | |||||||
| Number of vessels (FTE)* | 20.0 | 20.3 | -1.5% | 22.0 | 20.4 | 22.0 | -7.3% |
| Average utilization rate (%) | 54.3 | 45.4 | +8.9 pts | 63,4 | 46.4 | 62.2 | -15.8 pts |
| Average daily rate ($/d) | 30,321 | 30,571 | -0.8% | 34,304 | 32,353 | 36,649 | -11.7% |
| * FTE: Full Time Equivalent | |||||||
Bourbon Subsea Services posted a 25.5% increase in revenues compared with the 2nd quarter of 2018 (+24.2% at constant rates). This was mainly due to a rise in utilization rates of nearly 9 points and the awarding of turnkey projects, particularly in the field of floating offshore windfarms. The business benefited from renewed growth in spot maintenance work and the return to operation of shallow-water platforms during the quarter, particularly in the Gulf of Guinea.
However, average charter rates remained stable from the previous quarter, still weakened by a difficult market environment.
Bourbon Subsea Services installed the first semi-submersible floating wind turbine off the coast of Scotland this summer. This diversification will continue to pay off over the coming quarters.
OTHERS
| Quarter | 9 months | ||||||
| In € millions, unless otherwise noted | Q3 2018 | Q2 2018 | Change Q3 / Q2 | Q3 2017 | 2018 | 2017 | Change 2018/2017 |
| Financial performance | |||||||
| Adjusteda revenues | 2.3 | 1.9 | +21.6% | 3.0 | 7.4 | 11.0 | -33.0% |
Activities included are those that do not fit into either the Marine & Logistics, Mobility or Subsea Services segments. The majority of the total represents earnings from miscellaneous ship management activities.
OUTLOOK
With oil prices set to remain well above $60 a barrel, our clients are recovering leeway. This has led to acquisitions of new deepwater offshore blocks in Mexico, Brazil and Africa (Gabon, Cameroon, Guinea, etc.), as well as in the Mediterranean. However, initial investments are still mainly geared towards onshore projects, particularly shale oil and gas in the United States. Clients are currently focusing on short-term projects offering swift return on investment, but are also launching exploration campaigns to renew their reserves and thus meet growing demand.
A recovery appears to be under way, although it remains impacted by vessel overcapacity in the PSV and AHTS segments. We expect prices to remain persistently low. In this context, Bourbon is focusing its efforts on operational excellence, cash management, cost-cutting and overhauling its model by rolling out its strategic action plan # Bourbon INMOTION.
MAJOR EVENTS
As no mandatory payment event occurred during the year preceding the October 24, 2018 due date, Bourbon announced on October 16 that, in accordance with applicable terms and conditions, it would not be paying interest to holders of the Perpetual Deeply Subordinated Notes (TSSDI) issued by Bourbon Corporation - (code ISIN: FR0012239531).
Regarding its search for new financing, Bourbon confirms that its attempts to secure new financial partners in order to ensure its development and the implementation of the strategic plan # Bourbon INMOTION are moving forward diligently. The parameters of these potential new financings, in particular their amounts and structures (debt/equity instruments) are not yet determined.
In this context, and in the absence of confirmation of the general waiver renewal to date, Bourbon has announced on November 2 having obtained the opening of conciliation procedures to the benefit of 22 Bourbon Corporation subsidiaries from the president of the commercial court of Marseilles. These conciliation procedures will allow Bourbon to actively pursue, in an amicable framework, its search for all solutions for its development as well as its discussions with the main creditors and financial lessors of the group.
ADDITIONAL INFORMATION
Bourbon 's results will continue to be affected by the €/US$ exchange rate.
FINANCIAL CALENDAR
| 2018 Full Year and 4th quarter revenues press release | February 7, 2019 |
| 2018 Annual Results press release and presentation | March 14, 2019 |
| 2019 First quarter financial information | May 2, 2019 |
| Combined Shareholders' Meeting | June 7, 2019 |
APPENDIX
Quarterly revenue breakdown
| In € millions | 2018 | 2017 | |||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Bourbon Marine & Logistics | 87.0 | 89.9 | 92.4 | 100.2 | 97 .7 | 107.4 | 105.9 | ||
| Deepwater offshore vessels | 52.4 | 55.0 | 57.4 | 60.0 | 59.9 | 68.3 | 68.8 | ||
| Shallow water offshore vessels | 34.6 | 35.0 | 35.0 | 40.2 | 37.8 | 39.1 | 37.1 | ||
| Bourbon Mobility | 46.3 | 47.1 | 48.2 | 51.0 | 51.4 | 55.0 | 58.9 | ||
| Subsea Services | 37.9 | 30.2 | 27.2 | 43.6 | 52.1 | 67.8 | 56.6 | ||
| Others | 2.3 | 1.9 | 3.1 | 2.1 | 3.0 | 3.8 | 4.1 | ||
| Total adjusted revenues | 173.5 | 169.2 | 171.0 | 196.9 | 204.3 | 234.0 | 225.5 | ||
| IFRS 11 impact* | (13.4) | (15.2) | (13.3) | (15.3) | (11.9) | (19.2) | (20.6) | ||
| Total Fina Elf CONSOLIDATED | 160.2 | 153.9 | 157.6 | 181.6 | 192.4 | 214.7 | 204.9 | ||
*Effect of consolidation of joint ventures using the equity method
Quarterly average utilization rates for the fleet in operation
| In % | 2018 | 2017 | |||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Bourbon Marine & Logistics | 86.7 | 84.9 | 89.0 | 86.8 | 86.3 | 89.1 | 88.0 | ||
| Deepwater offshore vessels | 86.9 | 83.5 | 88.1 | 83.0 | 86.1 | 88.0 | 86.2 | ||
| Shallow water offshore vessels | 86.6 | 86.2 | 90.0 | 90.6 | 86.6 | 90.2 | 90.1 | ||
| Bourbon Mobility | 77.8 | 81.1 | 84.3 | 82.8 | 78.1 | 75.3 | 80.1 | ||
| Subsea Services | 73.9 | 60.9 | 55.7 | 80.6 | 89.6 | 83.3 | 85.2 | ||
| Average utilization rate | 81.2 | 81.7 | 84.9 | 84.3 | 81.8 | 80.6 | 83.0 | ||
Quarterly average utilization rates for the fleet
| In % | 2018 | 2017 | |||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Bourbon Marine & Logistics | 51.0 | 51.6 | 52.7 | 51.9 | 50.2 | 48.2 | 45.8 | ||
| Deepwater offshore vessels | 60.4 | 63.0 | 65.2 | 61.3 | 62.2 | 60.3 | 61.0 | ||
| Shallow water offshore vessels | 44.4 | 43.9 | 44.3 | 45.6 | 42.1 | 40.0 | 35.6 | ||
| Bourbon Mobility | 51.8 | 53.8 | 54.4 | 55.0 | 55.1 | 56.4 | 61.4 | ||
| Subsea Services | 54.3 | 45.4 | 39.0 | 56.7 | 63.4 | 65.7 | 57.5 | ||
| Average utilization rate | 51.6 | 52.5 | 53.0 | 53.7 | 53.4 | 53.3 | 54.5 | ||
Quarterly average daily rates for the fleet
| In US$/day | 2018 | 2017 | |||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Bourbon Marine & Logistics | 10,128 | 10,360 | 10,911 | 10,802 | 11,082 | 11,830 | 12,501 | ||
| Deepwater offshore vessels | 12,705 | 12,873 | 13,577 | 13,660 | 13,781 | 14,863 | 15,084 | ||
| Shallow water offshore vessels | 7,709 | 7,924 | 8,292 | 8,220 | 8,371 | 8,749 | 9,534 | ||
| Bourbon Mobility | 4,285 | 4,326 | 4,549 | 4,422 | 4,453 | 4,393 | 4,270 | ||
| Bourbon Subsea Services | 30,321 | 30,571 | 34,933 | 31,425 | 34,304 | 37,976 | 37,488 | ||
| Average daily rate | 7,854 | 7,786 | 8,179 | 8,299 | 8,668 | 9,075 | 8,769 | ||
Quarterly number of vessels (end of period)
| In number of vessels* | 2018 | 2017 | |||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Bourbon Marine & Logistics | 212 | 214 | 216 | 217 | 220 | 221 | 222 | ||
| Deepwater offshore vessels | 87 | 87 | 87 | | 86 | 89 | 89 | 89 | |
| Shallow water offshore vessels | 125 | 127 | 129 | 131 | 131 | 132 | 133 | ||
| Bourbon Mobility | 260 | 266 | 269 | 269 | 269 | 269 | 269 | ||
| Bourbon Subsea Services | 20 | 20 | 21 | 22 | 22 | 22 | 22 | ||
| FLEET Total Fina Elf | 492 | 500 | 506 | 508 | 511 | 512 | 513 | ||
*Vessels operated by Bourbon (including vessels owned or on bareboat charter)
Nine months' average utilization rates for the fleet in operation
| In % | 9 months | ||
| 2018 | 2017 | ||
| Bourbon Marine & Logistics | 86.5 | 87.7 | |
| Deepwater offshore vessels | 85.6 | 86.6 | |
| Shallow water offshore vessels | 87.5 | 88.9 | |
| Bourbon Mobility | 80.9 | 77.8 | |
| Bourbon Subsea Services | 64.0 | 85.9 | |
| Average utilization rate | 82.4 | 81.7 | |
Nine months' average utilization rates for the fleet
| In % | 9 months | ||
| 2018 | 2017 | ||
| Bourbon Marine & Logistics | 51.6 | 48.1 | |
| Deepwater offshore vessels | 62.5 | 61.1 | |
| Shallow water offshore vessels | 44.2 | 39.2 | |
| Bourbon Mobility | 53.3 | 57.6 | |
| Bourbon Subsea Services | 46.4 | 62.2 | |
| Average utilization rate | 52.3 | 53.7 | |
Nine months average daily rates for the fleet
| In US$/day | 9 months | ||
| 2018 | 2017 | ||
| Bourbon Marine & Logistics | 10,465 | 11,843 | |
| Deepwater offshore vessels | 13,009 | 14,687 | |
| Shallow water offshore vessels | 8,027 | 8,856 | |
| Bourbon Mobility | 4,355 | 4,427 | |
| Bourbon Subsea Services | 32,353 | 36,649 | |
| Average daily rate | 7,947 | 8,897 | |
Breakdown of revenues by geographical region
| In € millions | Quarter | 9 months | |||||
| Q3 2018 | Q2 2018 | Change | Q3 2017 | 2018 | 2017 | Change | |
| Africa | 90.6 | 89.4 | +1.4% | 118.9 | 280.0 | 384.3 | -27.1% |
| Europe & Mediterranean/Middle East | 40.5 | 36.3 | +11.5% | 31.1 | 102.9 | 91.5 | +12.5% |
| Americas | 22.3 | 24.3 | -8.2% | 36.0 | 73.5 | 115.4 | -36.3% |
| Asia | 20.2 | 19.2 | +5.1% | 18.3 | 57.3 | 72.6 | -21.1% |
| In € millions | 2018 | 2017 | |||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Africa | 90.6 | 89.4 | 99.9 | 113.4 | 118.9 | 135.3 | 130.1 | ||
| Europe & Mediterranean / Middle East | 40.5 | 36.3 | 26.2 | 31.6 | 31.1 | 31.6 | 28.8 | ||
| Americas | 22.3 | 24.3 | 27.0 | 32.3 | 36.0 | 38.3 | 41.3 | ||
| Asia | 20.2 | 19.2 | 17.9 | 19.7 | 18.3 | 29.0 | 25.3 | ||
Other key indicators
Quarterly breakdown
| 2018 | 2017 | ||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Average €/US$ exchange rate for the quarter (in €) | 1.16 | 1.19 | 1.23 | 1.18 | 1.17 | 1.10 | 1.06 | ||
| €/US$ exchange rate at closing (in €) | 1.16 | 1.17 | 1.23 | 1.20 | 1.18 | 1.14 | 1.07 | ||
| Average price of Brent for the quarter (in US$/bbl) | 75 | 75 | 67 | 61 | 55 | 51 | 54 | ||
Nine months' breakdown
| 9 months | |||
| 2018 | 2017 | ||
| Average €/US$ exchange rate for the half year (in €) | 1.19 | 1.11 | |
| €/US$ exchange rate at closing (in €) | 1.16 | 1.18 | |
| Average price of Brent for the half year (in US$/bbl) | 72 | 52 | |
About Bourbon
Among the market leaders in marine services for offshore oil & gas, Bourbon offers the most demanding oil & gas companies a wide range of marine services, both surface and sub-surface, for offshore oil & gas fields and wind farms. These extensive services rely on a broad range of the latest-generation vessels and the expertise of more than 8,400 skilled employees. Through its 29 operating subsidiaries the group provides local services as close as possible to customers and their operations throughout the world, of the highest standards of service and safety.
Bourbon provides three operating activities (Marine & Logistics, Mobility and Subsea Services) and also protects the French coastline for the French Navy.
In 2017, Bourbon 'S revenue came to €860.6 million and the company operated a fleet of 508 vessels.
Placed by ICB (Industry Classification Benchmark) in the "Oil Services" sector, Bourbon is listed on the Euronext Paris, Compartment B.
Contacts
| Bourbon | Media relations agency Publicis Groupe Consultants |
| Investor Relations, analysts, shareholders | Vilizara Lazarova |
| +33 140 138 607 investor-relations@bourbon-online.com | +33 144 824 634 vilizara.lazarova@consultants.publicis.fr |
| Corporate Communication | |
| Christelle Loisel | |
| +33 491 136 732 christelle.loisel@bourbon-online.com | |
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