Paris, March 12, 2008, version pdf
“Financial performance in 2007 was very satisfactory,
” declares Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON. “2007 was a pivotal year for the group − and the success of the 2003-2007 plan confirms the value of our strategy and our capacity to achieve the ambitious targets we have set ourselves. It also saw the launch of the Horizon 2012 plan that we are embarking on with confidence thanks to the investments already made and the faith shown in us by our clients.
”
| In millions of euros | End of Dec. 2007 | End of Dec. 2006 Proforma* | Change |
|---|---|---|---|
| Revenues | 769.7 | 608.6 | +26.5% |
| Gross operating income (EBITDA) | 309.7 | 244.9 | +26.4% |
| Operating income (EBIT) | 214.2 | 158.9 | +34.8% |
| Net gains from assets disposals & income from assets held for sale | 232.8 | 29.9 | ns |
| Net income | 403.8 | 164.9 | +144.8% |
| Net income. group share | 390.8 | 152.9 | +155.6% |
* proforma: port towage activity reclassified as held for sale, with the integration in the Offshore Division of French coastal protection (assistance and salvage tugs)
For BOURBON the year 2007 was characterized by the company’s good performance in both its Divisions and by substantial capital gains on disposals. The year marked the end of the 2003-2007 plan, whose initial objectives have been exceeded.
Revenues were up by 26.5% at 769.7 million euros. Gross operating income (EBITDA) came to 309.7 million euros, up 26.4%, and included capital gains of 47.6 million euros on vessels sold compared with 19.7 million in 2006. The revenue margin was 40.2%. Operating income (EBIT) of 214.2 million euros was 34.8% higher.
Net income group share for the year amounted to 390.8 million euros and included capital gains on disposals of 229 million euros.
The year also saw a large investment program, with 668 million euros invested in 2007, following on from the 438.1 million euros invested in 2006.
Revenues of the Offshore Division for 2007 totaled 484.5 million euros, up 21.9% compared with 2006.
At constant exchange rates, the increase would have been 29.5%.
| In millions of euros | End of Dec. 2007 | End of Dec. 2006 Proforma | Change |
|---|---|---|---|
| Revenues | 484.5 | 397.3 | +21.9% |
| Gross operating income (EBITDA) As a % of revenues |
214.9 44.4% |
195.8 49.3% |
+9.8% |
| Operating income (EBIT) As a % of revenues |
133.2 27.5% |
119.4 30.0% |
+11.6% |
* proforma: port towage activity reclassified as held for sale, with the integration in the Offshore Division of French coastal protection (assistance and salvage tugs)
The very satisfactory increase in revenues is due in particular to a rise in the number of vessels in operation (13 supply vessels and 24 crewboats in 2007). Revenues from vessels chartered to meet the needs of clients totaled 41 million euros in 2007 versus 21 million euros in 2006.
On the other hand, the rise was limited by the cessation of the Bourbon Dolphin and Athena activity and the sale of older vessels.
Gross operating income (EBITDA) totaled 214.9 million euros (24.7 million euros of which were from capital gains) versus 195.8 million euros in 2006 (19 million euros of which were from capital gains).
The margin remained very high at 44.4% but was slightly down on 2006 due to:
Operating income rose to 133.2 million euros, posting growth of 11.6%. This represents 27.5% of revenues.
Revenues of the Bulk Division for 2007 totaled 244.8 million euros, up +44.7% compared with 2006, driven by a buoyant market and very high BSI freight rates (+109% compared to the average rate for 2006).
| In millions of euros | End of Dec. 2007 | End of Dec.2006 | Change |
|---|---|---|---|
| Revenues | 244.8 | 169.2 | +44.7% |
| Gross operating income (EBITDA) As a % of revenues |
89.3 36.5% |
38.9 23.0% |
+129.5% |
| Operating income (EBIT) As a % of revenues |
79.6 32.5% |
35.0 20.7% |
+127.3% |
Gross operating income (EBITDA) reached a record 89.3 million euros, after 22.9 million euros in capital gains on the disposal of Nantor at the end of the year. Increase in revenues from wholly-owned vessels and vessels on long-term lease largely explains the performance.
BOURBON maintained its policy of long-term relationships with clients and therefore benefited rather less from variations in market rates.
Operating income came to 79.6 million euros in 2007 compared to 35.0 million euros in 2006, a gain of 127.3% (operating margin on revenues of 32.5%).
2008 sees the inauguration of the Horizon 2012 plan which sets BOURBON’s average growth in revenues at 17% per annum based on a substantial investment program already largely underway.
The market prospects are favorable for both the Offshore and Bulk Divisions, due to investments announced by oil and gas companies and high levels of freight forecast.
The long-term contract policy with clients, on both markets, provides a strong foundation for the generation of BOURBON’s gross operating income (EBITDA).
However, BOURBON’s results will continue to be influenced by changes in the euro-dollar parity.
At the Shareholders’ Meeting to be held in Paris on May 30, 2008, shareholders will be asked to approve a dividend of 1 euro per share including an exceptional dividend of €0.30.