News
BOURBON comes 3rd in the Boursoscan Prize for Financial Communication
On 21 November 2008, the website www.bourbon-online.com came Third in the Boursoscan Prize for Financial Communication, awarded by Boursorama, the first stock information website in France and by the specialized research company Opinionway.
The 2008 edition of the survey took place from September 15 to November 6. More than 7300 individual shareholders participated in this study. Through a rigorous methodology, they were able to visit all the websites of the listed companies that were studied. In total, 78 websites were selected for the study out of nearly 250 visited.
« We are particularly pleased to receive the 3rd Prize of the Boursoscan Trophy for Financial Communication having already been awarded a prize last year in the Small & Midcaps category. It is a reflection on the result of our policy of transparency. This prize is also the reward for a clear corporate strategy and honours all the employees who implement it with professionalism every day »
said Patrick Mangaud, Head of Investor Relations - Analysts - Shareholders, to whom Vincent Taupin, Chairman and General Director of Boursorama, handed the trophy at the ceremony held on Friday November 21 at the Palais des Congrès in Paris.
Boursoscan Prize for Financial Communication winners
| 1st Prize | 2nd Prize | 3rd Prize | |
|---|---|---|---|
| Prize for Financial Communication | Air Liquide | Essilor International | BOURBON |
More information (in French):
Download Boursoscan press release
Eight of BOURBON’s crew members released on November 11th have arrived in France
Paris, November 12, 2008, 8:45 A.M. (Paris local time)
Eight of BOURBON’s crew members, seven French and one Tunisian, kidnapped in Cameroon last 31st October and released on November 11th, have arrived in France this morning.
On arrival at Paris-Charles de Gaulle airport Mme Rama Yade, Minister of State to the Minister of Foreign and European Affairs, with responsibility for Foreign Affairs and Human Rights, greeted them in the presence of their families and friends.
After medical check-ups, all eight of them appear to be in good health.
So also were the two other crew members, both Cameroonian, who remained in their country and have already been reunited with their families.
At the airport to meet the liberated crew members, Jacques de Chateauvieux, Chief Executive Officer of BOURBON said: “It is with a great joy and relief that BOURBON’s staff and I have learnt of the release of the ten crew members of the Bourbon Sagitta, held hostage in Cameroon. I wish to thank all those involved in obtaining this successful outcome, in particular the Cameroonian authorities, the French Ministry for Foreign and European Affairs, and all BOURBON’s staff members for their unrelenting daily implication and support. I would also like to pay tribute to the professionalism and calm of the other crew members left on board. My thoughts go out to the families and friends who have shown great courage in the face of this terrible ordeal.”
BOURBON reiterates its thanks to all those who have contributed to the successful outcome of this affair.
>> Consult all available information
Bourbon Offshore Asia inaugurates the "BOURBON Training Center Asia" and its AHTS simulator in Singapore, the first electric propulsion AHTS simulator in the world
Singapore, November 7th, 2008 pdf file
BOURBON inaugurates today in Singapore in the premises of Bourbon Offshore Asia, the second BOURBON Training Center in Asia. The opening of this center follows the opening of the Manila’s (Philippines) center in October 2007 dedicated to Dynamic Positioning (DP).
This BOURBON Training Center includes an AHTS (Anchor Handling Tug Supply vessel) simulator that represents an outstanding technological advance and an opportunity for BOURBON and the marine industry as a whole to raise its operational, safety and quality standards.
[...]
November 7, 2008 Press release
BOURBON Quarterly Financial Results
Exceptionally strong growth in Offshore Division revenues (+43.0%)
Third quarter 2008 revenues up 19.5% (+30.0% at constant exchange rates) compared with the third quarter of 2007
Paris, October 30, 2008 pdf file
"The outstanding performance by the Offshore Division stemmed from the projected growth in the vessel fleet and improved rates following contract renewals whereas the Bulk Division experienced a reversal in the trend of exceptional growth of the past three years"
said Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON. "We are comfortably ahead of the growth targets set for the first year of the Horizon 2012 plan and the euro/dollar exchange rate now has a positive effect on income."
Third quarter revenues 2008 by division
| (in millions of euros) | Third quarter | First nine months | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Q3 2008 | Q3 2007 | Change at current exchange rates | Change at constant exchange rates | 2008 | 2007 | Change at current exchange rates | Change at constant exchange rates | ||
| Offshore | 178.0 | 124.5 | 43.0% | 55.1% | 463.0 | 355.9 | 30.1% | 42.8% | |
| Bulk | 57.4 | 66.1 | - 13.1% | - 5.1% | 190.8 | 183.5 | 4.0% | 17.7% | |
| Other | 4.1 | 9.8 | - 58.4% | - 52.4% | 19.4 | 32.1 | - 39.6% | - 31.7% | |
| BOURBON TOTAL | 239.5 | 200.4 | 19.5% | 30.0% | 673.2 | 571.5 | 17.8% | 30.6% | |
BOURBON revenues for the third quarter of 2008 increased 19.5% over the same period in 2007 to 239.5 million euros. Revenues were underpinned by the exceptionally strong growth in Offshore Division revenues, despite the moderate decline in Bulk Division revenues.
Revenues for the first nine months of the year increased 17.8 % at current exchange rates (up 30.6% at current exchange rates).
Offshore division
| (in millions of euros) | Q3 2008 | Q3 2007 | % change | First 9 months 2008 | First 9 months 2007 | Change | % | |
|---|---|---|---|---|---|---|---|---|
| Marine Services | 140.2 | 108.4 | 29.4% | 368.9 | 304.4 | 64.5 | 21.2% | |
| Subsea Services | 37.7 | 16.1 | 134.7% | 94.1 | 51.5 | 42.5 | 82.5% | |
| TOTAL | 178.0 | 124.5 | 43.0% | 463.0 | 355.9 | 107.0 | 30.1% | |
| BOURBON vessels | 153.2 | 111.1 | 37.8% | 396.1 | 327.9 | 68.2 | 20.8% | |
| Chartered vessels | 24.8 | 13.4 | 85.5% | 66.9 | 28.1 | 38.8 | 138.4% |
Revenues for the Offshore Division in the third quarter of 2008 rose 43.0% compared with the same period in 2007.
During the period, year-on-year revenue growth for BOURBON vessels rose 37.8% (up 48.8% at constant exchange rates). This spectacular growth was driven by the following factors:
- The commissioning of 60 new vessels in the last twelve months, among others due to regular deliveries of the Bourbon Liberty vessel series (3 of the 9 vessels delivered to date were delivered in the third quarter);
- A rapid growth in Subsea Services revenues (up 89%), thanks, in part, to the commissioning of 3 new IMR vessels;
- The renegotiation of a number of existing contracts which has enabled the Division to offset cost surcharges in higher-risk countries and to partially offset the impact of the decline in the US dollar.
This outstanding performance was achieved in spite of the weak dollar/euro exchange rates that prevailed during the third quarter. The average exchange rate in the third quarter was $1.51 for €1.00, representing a decline of $0.14 versus the same period in 2007.
Breakdown of the Offshore Division revenues by geographical region
| First 9 months | |||
|---|---|---|---|
| (in millions of euros) | 2008 | 2007 | Change |
| Offshore Division | 463.0 | 355.9 | 30.1% |
| Africa | 313.7 | 237.2 | 32.3% |
| Europe & Med/Middle East | 86.6 | 74.1 | 16.9% |
| American continent | 33.1 | 29.1 | 14.0% |
| Asia | 29.5 | 15.6 | 88.8% |
In Africa, a region in which BOURBON has historically had a significant presence, revenue growth remains exceptionally strong (up 32.3% compared with the same period in 2007), notably thanks to the continued growth of operations in Nigeria, Congo and Angola.
The exceptionally strong growth in Asia, BOURBON’s most recent zone of operations, was attributable to the commissioning of 8 new vessels in the last twelve months which will be based in India, Malaysia and Thailand.
Bulk Division
BOURBON’s focus on developing long-term contract relations is designed to reduce the impact on revenues from fluctuations in cargo spot market rates.
Thus, for the third quarter of 2008, the year-on-year reduction in dollar revenues was limited to 5.1% whilst the Baltic Supramax Index (BSI) went down by 10.3%.
Cumulative growth in dollar revenues for the first nine months of the year rose 17.7% on the same period in 2007 while the BSI was up 26.2% compared with the first nine months in 2007.
The reduction in the number of full-time equivalent vessels, a consequence of the exceptionally high levels of market volatility, also impacted unfavorably on year-on-year revenue growth.
The sale of the Supramax Fructidor bulk carrier in early July generated a capital gain for BOURBON of 40.6 million dollars.
Operations and major highlights
On July 1, 2008, BOURBON completed the sale of its equity interest in the Rigdon companies in connection with the merger between Rigdon Marine Corporation and Gulfmark Offshore.
As the Rigdon companies had so far been accounted for according to the equity method, the sale will have no impact for BOURBON, either on revenues or EBITDA.
BOURBON will record a capital gain on sale of 59 million euros in the second half of 2008.
To hedge the main part of the dollar exposure of the Offshore Division margin in 2009, BOURBON has entered into a dollar currency forward contract at a rate of €1.00 for $1.27.
Between October 2 and 7, Jaccar acquired 380,000 BOURBON shares through its subsidiary, Jaccar Holdings SA, thus increasing its stake in the company to 24.9%.
Finally, upon the approval of the Board of Directors, BOURBON bought back one million of its own shares between October 1 and 15 for use in servicing future award for stock purchase option to personnel.
Outlook
Confirmation of Horizon 2012 plan
Notwithstanding the current turmoil in global financial markets, BOURBON remains confident in the growth prospects for its markets and confirms the strategy goals outlined in the Horizon 2012 plan:
Offshore Division
Demand for oil will remain buoyant over the medium-term, and will provide a business case to justify further investments by oil companies. Oil companies have ample financial resources with which to fund investment; they base their decisions on the 10-year average price for oil rather than on current rates.
Furthermore, BOURBON’s core business strategy protects the company from market risk and focuses essentially on oil fields already under production (and not under exploration) for which activity levels are not conditioned on oil companies’ exploration expenses. This strategy is specifically built upon two key pillars:
- The delivery of 78 replacement vessels for use in production on continental offshore fields;
- The delivery of 18 vessels for deepwater offshore intervention, maintenance and repair operations.
The company’s 21% growth objective for the 2008-2012 period is based on the delivery of 120 supply vessels. Orders have already been placed for these vessels with highly reputable shipyards which have proven track records for delivering innovative, high quality vessels and which remain on a solid financial footing at the present time.
Bulk Division
The Bulk Division comprises two activities with different profit profiles;
- Activities involving higher-margin owned vessels; fluctuations in revenue in this activity impact directly on EBITDA.
- Activities involving lower-margin chartered vessels; this activity is not affected by differentials between fluctuations in cargo prices and in chartering costs. The impact of this price variation on EBITDA is extremely limited.
The main thrust of the Horizon 2012 plan consists of increasing the portion of higher-margin owned vessels. To date, 16 bulk carriers are on order.
The assumptions underpinning the strategic plan are based on significantly lower prices than the exceptionally high prices observed over the last 18 months. In line with this prudent approach, BOURBON aims to achieve a profitability target of 29% (as measured by the EBITDA/capital employed ratio) compared to the 135% profitability level achieved over the first six months of 2008.
Full-year results
The Offshore Division will benefit from the commissioning of 18 new vessels and from the renewal of contracts due to expire while market conditions still remain favorable.
The Bulk Division is on track to deliver exceptional EBITDA for the full year on a par with the 2007 performance.
BOURBON’s financial results will continue to be influenced by euro/dollar exchange rate fluctuations however this factor is now set to contribute favorably to overall performance.
Financial calendar
- 4th quarter and full-year 2008 annual results
- February 9, 2009
- Presentation of 2008 annual results
- March 26, 2009
- 1st quarter 2009 financial results
- May 7, 2009
Appendices
Bourbon quaterly data
| 2008 | 2007 | |||||||
|---|---|---|---|---|---|---|---|---|
| (in millions of euros) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Offshore | 178.0 | 148.2 | 136.8 | 128.6 | 124.5 | 120.6 | 110.8 | |
| Bulk | 57.4 | 67.8 | 65.6 | 61.3 | 66.1 | 67.0 | 50.4 | |
| Other | 4.1 | 6.0 | 9.3 | 8.3 | 9.8 | 9.0 | 13.2 | |
| BOURBON TOTAL | 239.5 | 222.0 | 211.7 | 198.2 | 200.4 | 196.6 | 174.4 | |
Key indicators
| Q3 2008 | Q3 2007 | |
|---|---|---|
| Average exchange rate for the quarter €/USD | 1.51 | 1.37 |
| €/USD exchange rate at closing on September 30 | 1.43 | 1.42 |
| Average Brent price for the quarter (in $/bl) |
117 | 75 |
| Average Baltic Supramax Index for the quarter (in $/day) |
45 575 | 50 834 |
The average euro/dollar exchange rate for the first nine months of the year was $1.52, compared with $1.34 for the same period last year.
The Baltic Supramax Index increased to an average of $52,090 per day in the first nine months of 2008 compared with an average of $41,272 per day in the same period last year.
SITUATION IN NIGERIA
BOURBON is adapting its security procedures to the increased insecurity noted recently in the Niger Delta region
Paris, October 29, 2008.
On Saturday 25th October, the Ajax, a BOURBON Anchor Handling Tug Support vessel operating in Nigeria, was boarded by armed men. After several hours on board, they disembarked having stolen personal effects from the crew and material from the ship. The crew, who were neither wounded nor physically attacked, immediately took the vessel back to a secure zone.
Following this incident BOURBON decided to suspend all ships movements in the Bonny River area. This did not affect the offshore drilling areas in which both BOURBON and its oil customers continued to operate. The suspension was applied whilst additional and newly adapted security measures were put in place.
Operations will be progressively back to normal as from tomorrow.
Changes in security measures in the country involve adjusting and redefining safety zones, reinforcing support and protection measures, and vessel surveillance, whether our ships be in convoy, in operation, navigating or in transit towards the coast.
In order to guarantee the best possible security conditions for its staff BOURBON applies high security measures in Nigeria, which are specific to that country.
These procedures and security measures are modified and adapted permanently according to the risks and specific practices monitored locally, in order to be as efficient as can possible be.
BOURBON will bring forward the date of publication of 3rd quarter results to Thursday 30th October at 7 a.m.
Paris, October 28, 2008 pdf file
BOURBON is announcing the publication of its press release “2008 3rd quarter revenues” for Thursday 30th October 2008 at 7 a.m. (Paris local time) instead of 6th November, which was the date previously mentioned.
Bourbon Offshore Greenmar Crew Meeting under the banner of diversity, sharing and training
More than 30 officers and functional managers at BOURBON and Bourbon Offshore Greenmar, representing 8 nationalities, met on 15 and 16 October at Divonne Les Bains (France).
Held by the Shipmanagers and Crewing companies in Bourbon Offshore Operational Areas throughout the world, the Officers Meetings illustrate BOURBON’s approach at the local level: connect its collaborators, listen, inform and train, consider new projects and outline the prospects for a shared future.
High standards to guarantee the same quality of service worldwide
Bourbon Offshore Greenmar is a multicultural company managing vessels operating under international flags with multi-national crews, including Croat, Ukrainian, Romanian, Polish, Argentinean, Philippine, German, French and others.
Creating a common language for the application of operating standards is a key factor in performance, efficiency and flexibility, so that clients can be guaranteed the same quality of service all over the world.
Every year, by bringing together officers, masters, chief engineers, marine superintendants, port engineers, and functional managers, Bourbon Offshore Greenmar puts its commitment to continuous training into practice, emphasizing core themes such as strategic vision, safety management, environmental responsibility, operational and technical management, purchasing and finance.
Safety: a clear priority and a vital element in training
Bourbon Offshore Greenmar’s exemplary safety figures demonstrate its commitment to ensuring its employees’ application of the essential theme of safety and to boosting the motivation of its crews.
Guillaume Coumoul, QHSE Manager at Bourbon Offshore Greenmar, points to the value of this seminar:
“Most important are preventive actions that enable accidents to be avoided. Sharing experience and best practice are the key. And who better than the seafarers is able to relay what happens on board? Their experience is essential to setting up preventive actions.”
Interaction and Diversity, sources of wealth for the company and its employees
Exchanging points of view, learning from other people’s experiences, being in turn exponent and spectator, participating and expressing yourself – these are all ways in which the participants gain value from this assembly.
A seminar of this kind fosters mutual understanding between employees and enables everyone to gain an overview of the different aspects, to fuel creative ideas by sharing expertise and resources, and to sharpen competitiveness.
The next seminars of this kind will be held in France, Norway, the Philippines and Singapore.
Strong earnings in 1st Half 2008
Revenues up 16.9% (+31% at constant exchange rate)
Operating income stable at current exchange rate at €90.4 m
Net income (group share) down 21.2% at €78.2 m
Paris, August 27, 2008 version pdf
"BOURBON performed extremely well in the first half of the year. The Offshore Division was up, the Bulk Division was highly profitable and the investment program proceeded as planned. Gross operating income (EBITDA) remains high on a comparable basis despite a 15% depreciation of the dollar. Overall, BOURBON posted an excellent return on capital employed of 17.3% (excluding installments on vessels under construction) which reflects the optimization of vessel acquisition prices."
explained Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON.
| In millions of euros | 1st Half 2008 | 1st Half 2007 | Change |
|---|---|---|---|
| Revenues | 433.6 | 371.0 | + 16.9% |
| Gross operating income (EBITDA) | 138.1 | 137.9 | + 0.1% |
| Operating income (EBIT) | 90.4 | 93.7 | - 3.5% |
| Net income | 83.5 | 108.0 | - 22.7% |
| Net income (group share) | 78.2 | 99.3 | - 21.2% |
In the first half of 2008 the Offshore Division experienced strong organic growth, particularly in the "Subsea Services" activity, which accounts for 20% of the total for the Division. The Bulk Division posted an exceptional performance in a market that remains highly buoyant.
Revenues rose by 31% at constant exchange rate to 433.6 million euros, +16.9% at current exchange rate. Gross operating income (EBITDA) amounted to 138.1 million euros, in line with the same period in 2007 despite a depreciation of 15% of the US dollar. This includes 6.3 million euros in capital gains from vessel disposals compared with 11.7 million euros in the first half of 2007.
Operating income amounted to 90.4 million euros compared with 93.7 million euros in the first half of 2007.
Net income (group share) amounted to 78.2 million euros, compared with 99.3 million euros in the first half of 2007. On that date, net income included a capital gain of 21 million euros from the disposal of part of the sugar activity in Vietnam.
The ratio of "EBITDA to average capital employed excluding installments” amounted to 17.3%, very close to the objective of 18% expected for the year 2012.
Taking into account the 765 million euros in installments on vessels on order and the 250 million euros in future asset disposals, BOURBON had a net operating debt of 175 million euros as of June 30, 2008, emphasizing the group’s sound position. Hence investments are funded, the financial risks associated with current business are low, and BOURBON is generating high EBITDA on a recurring basis.
OFFSHORE DIVISION
| In millions of euros | 1st Half 2008 | 1st Half 2007 | Change |
|---|---|---|---|
| Revenues Including chartered vessels |
285.0 42.1 |
231.4 14.7 |
+ 23.1% + 186.5% |
| Gross operating income (EBITDA) before gains on disposals As % of revenues |
94.0 33.0% |
93.5 40.4% |
+ 0.5% |
| Gross operating income (EBITDA) As % of revenues |
100.3 35.2% |
105.2 45.5% |
- 4.7% |
| Operating income (EBIT) As % of revenues |
52.8 18.5% |
67.3 29.1% |
- 21.5% |
The Offshore Division posted revenues of 285 million euros, up 23.1% over the first half of 2007 (36.1% at constant exchange rate).
This growth was driven mainly by sustained organic growth in a buoyant market, particularly in Africa and Asia; the strong increase in external charters and the build-up of the "Subsea Services" activity.
Starting in 2009, results will be broken down by "Marine Services" and "Subsea Services" activities and will meet the new IFRS 8 standard.
Gross operating income before capital gains from vessel sales was stable at 94 million euros. The capital gain from vessel sales totaled 6.3 million euros compared with 11.7 million euros for the first half of 2007.
During this half year, BOURBON complied with the delivery schedule set out in the Horizon 2012 strategy, with the delivery and commissioning of 10 supply vessels, including 1 dedicated to IMR (Inspection, Maintenance and Repair).
The margin rate (EBITDA before capital gains on revenues) amounted to 33%, down by 7.4 points from the first half of 2007 owing to the following:
- The 15% decline in the average price of the dollar,
- The nearly threefold increase in revenues with external chartered vessels, which generate less profit,
- The increase in personnel and maintenance costs, as well as current expenditure designed to guarantee future growth.
Operating income amounted to 52.8 million euros, down 21.5% from the first half of 2007, reflecting increased depreciation figures corresponding to the build-up of the fleet.
BULK DIVISION
The Bulk Division posted revenues of 133.4 million euros in the first half of 2008, up 13.6% at current exchange rate and 30.8% at constant exchange rate compared with the same period in 2007. This activity reaped the benefits of a market that remained extremely buoyant, with Baltic Supramax Index rates of USD 55,292/d compared with 36,450 in the first half of 2007 and 58,603 in the second half of 2007.
| In millions of euros | First Half 2008 | First Half 2007 | Change |
|---|---|---|---|
| Revenues | 133.4 | 117.4 | + 13.6% |
| Gross operating income (EBITDA) As % of revenues |
38.8 29.1% |
29.8 25.4% |
+ 30.1% |
| Operating income (EBIT) As % of revenues |
37.1 27.8% |
26.8 22.8% |
+ 38.5% |
Gross operating income amounted to 38.8 million euros, up 30.1% over the first half of 2007.
Operating income totaled 37.1 million euros, up 38.5% over 2007.
OUTLOOK
BOURBON’s activity in the second half will continue in line with the Horizon 2012 plan.
The Offshore Division will be boosted by the commissioning of 32 new vessels and by the renewal of contracts in a still buoyant offshore market.
The Bulk Division’s results will include a $40.6 million capital gain following the July sale of the Supramax Fructidor bulk carrier and the Division will take delivery of two new vessels in January 2009. BSI rates are expected to remain at a high level, albeit lower than levels in the first half.
The disposal of the shares held in the Rigdon companies in early July will yield a capital gain of 58.2 million euros and will have a positive effect of some 170 million euros on BOURBON’s indebtedness.
Finally, BOURBON’s financial results will continue to be influenced by the euro-dollar exchange rate.
FINANCIAL CALENDAR
- Third quarter 2008 results
- November 6, 2008
- Fourth quarter and full-year 2008 revenue release
- February 9, 2009
- Presentation of 2008 annual results
- March 26, 2009
More about first half 2008 results
First half revenues surge 31% at constant exchange rates
(16.9% at current exchange rates) to €433.6 million, in line with the Horizon 2012 plan
Paris, August 7, 2008 version pdf
Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON, said: “The strong growth in revenues reflects delivery of new vessels, activity generated by chartered vessels, rate increases following contract renewals and a continuing high level of freight rates in the Bulk Division; despite the dollar’s steep decline, BOURBON’s growth is fully in line with the goals of the Horizon 2012 strategic plan.”
FIRST HALF REVENUES 2008 BY DIVISION
| (in millions of euros) | Second Quarter | First Half | ||||||
|---|---|---|---|---|---|---|---|---|
| Q2 2008 | Q2 2007 | Change at current exchange rates | H1 2008 | H1 2007 | Change at current exchange rates | Change at constant exchange rates | ||
| Offshore | 148.2 | 120.6 | 22.9% | 285.0 | 231.4 | 23.1% | 36.1% | |
| Bulk | 67.8 | 67.0 | 1.2% | 133.4 | 117.4 | 13.6% | 30.8% | |
| Other | 6.0 | 9.0 | -33.2% | 15.3 | 22.2 | -31.2% | -22.0% | |
| BOURBON TOTAL | 222.0 | 196.6 | 12.9% | 433.6 | 371.0 | 16.9% | 31.0% | |
First half revenues amounted to €433.6 million, up 16.9% over first half 2007.
In first half 2008, the dollar suffered a decrease of 15% compared with first half 2007, with an average dollar/euro exchange rate of 1.53 in first half 2008 compared to 1.33 in first half 2007.
At constant exchange rates, revenues increased 31%.
BOURBON’s growth, which is in line with the Horizon 2012 plan, was boosted by both a buoyant offshore oil and gas marine services market and strong freight rates that remained exceptionally high.
OFFSHORE DIVISION
As announced under the Horizon 2012 plan, the breakdown in the Offshore Division’s revenues now reflects the new organisational structure covering two Activities, Marine Services and Subsea Services.
| (in millions of euros) | H1 2008 | H1 2007 | Change | % |
|---|---|---|---|---|
| Marine Services | 228.7 | 196.0 | 32.7 | 16.7% |
| Subsea Services | 56.3 | 35.4 | 20.9 | 59.0% |
| TOTAL | 285.0 | 231.4 | 53.6 | 23.1% |
| BOURBON vessels | 242.9 | 216.7 | 26.2 | 12.1% |
| Chartered vessels | 42.1 | 14.7 | 27.4 | +186.5% |
The Offshore Division’s revenues, at €285 million, rose 36.1% at constant exchange rates and 23.1% at current exchange rates compared to first half 2007.
Growth was driven by:
- deliveries of new vessels,
- an increase in the chartered fleet,
- rate increases following contract renewals.
On the downside, revenues for the period were hit by disposals of vessels and the unfavorable euro/dollar exchange rate.
Breakdown of the Offshore Division by geographical region
| First Half | |||
|---|---|---|---|
| (in millions of euros) | H1 2008 | H1 2007 | % Change |
| Offshore Division | 285.0 | 231.4 | 23.1% |
| Africa | 194.9 | 153.6 | 26.9% |
| Europe & Med/ Middle East | 52.8 | 49.3 | 7.1% |
| American Continent | 20.8 | 18.9 | 10.1% |
| Asia | 16.5 | 9.6 | 71.9% |
BOURBON’s activity in Africa continues to soar, particularly in Nigeria, Angola and Congo. The strong revenue growth in Angola and Congo was fuelled by the deepwater activity and the operational relaunch of old fields.
In Nigeria, conditions locally made operational management extremely difficult. Decisions taken to bolster security led to significant additional costs, which the customers understood.
In addition to strong revenues in Europe and on the American continent, BOURBON is also building up its presence in the booming region of India and South East Asia, where the company was boosted by contracts with new customers including Reliance, Talisman, JVPC Vietnam etc.
BULK DIVISION
The Bulk Division posted revenues of €133.4 million for the period ended June 30, 2008, up 13.6% at current exchange rates and 30.8% at constant exchange rates compared to first half 2007.
The activity benefited from an increase in the Baltic Supramax Index (BSI) from an average of $36,450 per day in first half 2007 to an average of $55,292 per day in first half 2008.
The volume shipped for first half 2008 amounted to 7.5 million tons, down from 8.2 million tons for first half 2007. BOURBON thus used 22 ships equivalent full time in first half 2008, of which 6 are fully owned, down from 25 ships equivalent full time in first half 2007.
OUTLOOK
BOURBON’s activity in the second half will continue in line with the Horizon 2012 plan.
The Offshore Division will be boosted by the commissioning of new vessels and by the renewal of contracts in a still buoyant offshore market.
The Bulk Division’s results will include a $40.6 million capital gain following the July sale of the Supramax Fructidor bulk carrier and the Division will take delivery of two new vessels in December 2008. BSI rates are expected to remain at a high level, albeit lower than levels in the first half.
Finally, BOURBON’s financial results will continue to be affected by movements in the euro-dollar exchange rate.
FINANCIAL CALENDAR
- Presentation of first half 2008 results
- August 27, 2008
- Third quarter 2008 revenue release
- November 6, 2008
- Fourth quarter and full-year 2008 revenue release
- February 9, 2009
- Presentation of 2008 annual results
- March 26, 2009
APPENDICES
BOURBON QUATERLY DATA
| 2008 | 2007 | ||||||
|---|---|---|---|---|---|---|---|
| (in millions of euros) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Offshore | 148.2 | 136.8 | 128.6 | 124.5 | 120.6 | 110.8 | |
| Bulk | 67.8 | 65.6 | 61.3 | 66.1 | 67.0 | 50.4 | |
| Other | 6.0 | 9.3 | 8.3 | 9.8 | 9.0 | 13.2 | |
| BOURBON TOTAL | 222.0 | 211.7 | 198.2 | 200.4 | 196.6 | 174.4 | |
KEY INDICATORS
| Q2 2008 | Q2 2007 | |
|---|---|---|
| Average USD exchange rate for the quarter (in €) | 1.5553 | 1.3478 |
| USD exchange rate at closing on June 30 (in €) | 1.5764 | 1.3505 |
| Average Brent price for the quarter (in $/bl) | 123 | 69 |
| Average Baltic Supramax Index for the quarter (in $/day) | 60,461 | 41,483 |
The average euro/dollar exchange rate in first half 2008 was 1.53$ compared with 1.33$ in first half 2007.
First half revenues surge 31% at constant exchange rates (16.9% at current exchange rates) to €433.6 million, in line with the Horizon 2012 plan
Paris, August 7, 2008 version pdf
Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON, said: “The strong growth in revenues reflects delivery of new vessels, activity generated by chartered vessels, rate increases following contract renewals and a continuing high level of freight rates in the Bulk Division; despite the dollar’s steep decline, BOURBON’s growth is fully in line with the goals of the Horizon 2012 strategic plan.”
FIRST HALF REVENUES 2008 BY DIVISION
| (in millions of euros) | Second Quarter | First Half | ||||||
|---|---|---|---|---|---|---|---|---|
| Q2 2008 | Q2 2007 | Change at current exchange rates | H1 2008 | H1 2007 | Change at current exchange rates | Change at constant exchange rates | ||
| Offshore | 148,2 | 120,6 | 22,9% | 285,0 | 231,4 | 23,1% | 36,1% | |
| Bulk | 67,8 | 67,0 | 1,2% | 133,4 | 117,4 | 13,6% | 30,8% | |
| Other | 6,0 | 9,0 | -33,2% | 15,3 | 22,2 | -31,2% | -22,0% | |
| BOURBON TOTAL | 222,0 | 196,6 | 12,9% | 433,6 | 371,0 | 16,9% | 31,0% | |
First half revenues amounted to €433.6 million, up 16.9% over first half 2007.
In first half 2008, the dollar suffered a decrease of 15% compared with first half 2007, with an average dollar/euro exchange rate of 1.53 in first half 2008 compared to 1.33 in first half 2007.
At constant exchange rates, revenues increased 31%.
BOURBON’s growth, which is in line with the Horizon 2012 plan, was boosted by both a buoyant offshore oil and gas marine services market and strong freight rates that remained exceptionally high.
OFFSHORE DIVISION
As announced under the Horizon 2012 plan, the breakdown in the Offshore Division’s revenues now reflects the new organisational structure covering two Activities, Marine Services and Subsea Services.
| (in millions of euros) | H1 2008 | H1 2007 | Change | % |
|---|---|---|---|---|
| Marine Services | 228,7 | 196,0 | 32,7 | 16,7% |
| Subsea Services | 56,3 | 35,4 | 20.9 | 59,0% |
| TOTAL | 285,0 | 231,4 | 53,6 | 23,1% |
| BOURBON vessels | 242,9 | 216,7 | 26,2 | 12,1% |
| Chartered vessels | 42,1 | 14,7 | 27,4 | +186,5% |
The Offshore Division’s revenues, at €285 million, rose 36.1% at constant exchange rates and 23.1% at current exchange rates compared to first half 2007.
Growth was driven by:
- deliveries of new vessels,
- an increase in the chartered fleet,
- rate increases following contract renewals.
On the downside, revenues for the period were hit by disposals of vessels and the unfavorable euro/dollar exchange rate.
Breakdown of the Offshore Division by geographical region
| First Half | |||
|---|---|---|---|
| (in millions of euros) | H1 2008 | H1 2007 | % Change |
| Offshore Division | 285,0 | 231,4 | 23,1% |
| Africa | 194,9 | 153,6 | 26,9% |
| Europe & Med/ Middle East | 52,8 | 49,3 | 7,1% |
| American Continent | 20,8 | 18,9 | 10,1% |
| Asia | 16,5 | 9,6 | 71,9% |
BOURBON’s activity in Africa continues to soar, particularly in Nigeria, Angola and Congo. The strong revenue growth in Angola and Congo was fuelled by the deepwater activity and the operational relaunch of old fields.
In Nigeria, conditions locally made operational management extremely difficult. Decisions taken to bolster security led to significant additional costs, which the customers understood.
In addition to strong revenues in Europe and on the American continent, BOURBON is also building up its presence in the booming region of India and South East Asia, where the company was boosted by contracts with new customers including Reliance, Talisman, JVPC Vietnam etc.
BULK DIVISION
The Bulk Division posted revenues of €133.4 million for the period ended June 30, 2008, up 13.6% at current exchange rates and 30.8% at constant exchange rates compared to first half 2007.
The activity benefited from an increase in the Baltic Supramax Index (BSI) from an average of $36,450 per day in first half 2007 to an average of $55,292 per day in first half 2008.
The volume shipped for first half 2008 amounted to 7.5 million tons, down from 8.2 million tons for first half 2007. BOURBON thus used 22 ships equivalent full time in first half 2008, of which 6 are fully owned, down from 25 ships equivalent full time in first half 2007.
OUTLOOK
BOURBON’s activity in the second half will continue in line with the Horizon 2012 plan.
The Offshore Division will be boosted by the commissioning of new vessels and by the renewal of contracts in a still buoyant offshore market.
The Bulk Division’s results will include a $40.6 million capital gain following the July sale of the Supramax Fructidor bulk carrier and the Division will take delivery of two new vessels in December 2008. BSI rates are expected to remain at a high level, albeit lower than levels in the first half.
Finally, BOURBON’s financial results will continue to be affected by movements in the euro-dollar exchange rate.
FINANCIAL CALENDAR
- August 27, 2008 Presentation of first half 2008 results
- November 6, 2008 Third quarter 2008 revenue release
- February 9, 2009 Fourth quarter and full-year 2008 revenue release
- March 26, 2009 Presentation of 2008 annual results
APPENDICES
BOURBON QUATERLY DATA
| 2008 | 2007 | ||||||
|---|---|---|---|---|---|---|---|
| (in millions of euros) | T2 | T1 | T4 | T3 | T2 | T1 | |
| Offshore | 148,2 | 136,8 | 128,6 | 124,5 | 120,6 | 110,8 | |
| Bulk | 67,8 | 65,6 | 61,3 | 66,1 | 67,0 | 50,4 | |
| Other | 6,0 | 9,3 | 8,3 | 9,8 | 9,0 | 13,2 | |
| BOURBON TOTAL | 222,0 | 211,7 | 198,2 | 200,4 | 196,6 | 174,4 | |
KEY INDICATORS
| T2 2008 | T2 2007 | |
|---|---|---|
| Average USD exchange rate for the quarter (in €) | 1,5553 | 1,3478 |
| USD exchange rate at closing on June 30 (in €) | 1,5764 | 1,3505 |
| Average Brent price for the quarter (in $/bl) | 123 | 69 |
| Average Baltic Supramax Index for the quarter (in $/day) | 60 461 | 41 483 |
The average euro/dollar exchange rate in first half 2008 was 1.53$ compared with 1.33$ in first half 2007.
The BOURBON Company for salvage and protection of the French coast changes its name
"Les Abeilles International" becomes "Les Abeilles"
Paris, July 24, 2008, pdf file
BOURBON is announcing that its company "Les Abeilles International", which includes protection of the French coastline, as well as assistance and salvage operations handled by five tugs chartered by the French Navy, is changing its name to "Les Abeilles".
BOURBON, although it sold its port towage activity to Boluda in 2007, kept the name "Les Abeilles". Since ”Les Abeilles” was founded in 1864 in the port of Le Havre, this mythical name has been at the forefront of the navigation companies that helped to build the excellent reputation of the French Merchant Navy.
Christian Quillivic, Managing Director of Les Abeilles, says: "Under this name, we will carry on the tradition of excellence and passion that is our trademark. Thus the men and women of BOURBON who, on land and at sea, work daily to protect the French coastline and the marine environment will continue to keep this name and its rich history alive."
This name change became effective on 30 June 2008
More: Salvage tugs
BOURBON has sold its interest in the Rigdon companies
Paris, July 2, 2008, pdf file
The sale of BOURBON’s interest in the Rigdon companies, announced on May 28 as part of the merger proposal between Ridgon Marine Corporation and Gulfmark Offshore, was completed on July 1.
As the Rigdon companies had so far been accounted for according to the equity method, the sale will have no impact on revenues, nor on BOURBON’s EBITDA.
As previously announced the sale will generate for BOURBON a capital gain on sale of approximately 60 million euros in the second half.
Combined Annual and Special Shareholders’ meeting of May 30, 2008
Paris, June 2, 2008, pdf file
BOURBON’s Combined Annual and Special Shareholders’ meeting, chaired by Mr. Jacques de Chateauvieux, was held on Friday May 30, 2008 at the Palais Brongniart, Paris.
All the resolutions were approved by the shareholders, specifically:
- Distribution of a dividend of 1 euro per share
This dividend, over 60% higher than that for 2006, will be paid on June 9, 2008. It will generate a 40% tax credit (representing 0.40 euro per share) applicable to individuals who are resident in France for tax purposes.
This 1 euro dividend includes an exceptional dividend of 0.30 euro, due mainly to the finalization of the sale process of Vindémia, as announced in the 2003-2007 strategic plan. - Renewal of the mandates of Messers Christian Munier, Guy Dupont, Christian d’Armand de Chateauvieux and Henri d’Armand de Chateauvieux, ratification of the co-option of Ms Lan Vo Thi Huyen, and the appointment of Mr. Baudouin Monnoyeur as Directors of the Board of BOURBON.
At this Meeting, the Chairman also informed shareholders that from March 12 to May 23, 2008,
BOURBON bought 1,225,955 BOURBON shares at an average price of less than 39 euros.
This stock buyback was carried out in the context of the Board of Directors’ decision in December 10, 2007
to award stock options.
It will avoid the need for new shares to be issued and the consequent dilutive effect.
More information: 2008 Combined Annual Shareholders
FINANCIAL CALENDAR
- 2nd quarter and 1st half 2008 financial results
- August 7, 2008
- Presentation of first half 2008 results:
- August 27, 2008
- 3rd quarter 2008 financial results
- November 6, 2008
BOURBON to sell its interest in the Rigdon companies
Paris, May 29, 2008, pdf version
Under the merger proposal between Rigdon Marine Corporation and Gulfmark Offshore announced on May 28, BOURBON is to sell its interest in the Rigdon companies.
This sale will be effective on completion of the merger which is due to take place in the 3rd quarter of 2008.
For BOURBON it will generate:
- capital gain on sale of approximately 60 million euros,
- repayment by Rigdon of loans granted by BOURBON, for a total of 110 million euros, which, in addition to the cash proceeds from the sale, will reduce the group’s debt.
Since January 2006, BOURBON had contributed to the implementation of Rigdon’s financial structure.
As this company has been so far accounted for according to the equity method, the sale will have no impact on revenues nor on BOURBON’s EBITDA.
More : GulfMark Offshore and Rigdon Marine Announce Signing of Purchase Agreement (pdf file)
Mach Invest SAS exceeds the 5% statutory shareholding threshold in BOURBON’s capital
Paris, May 14, 2008, pdf file
BOURBON has been informed that Mach Invest SAS, a French investment company, crossed the 5% shareholding threshold in BOURBON on May 13th, by the acquisition of 1 750 000 shares.
Mach Invest SAS now holds 2 819 750 shares, or 5.084% of BOURBON’s shares.
Mr. Henri de Chateauvieux is Mach Invest’s majority shareholder and CEO and has been a Member of the Board of Directors of BOURBON since 1987.
BOURBON Quarterly Financial Results
1st quarter revenues up 21.4% (+34.5% at constant exchange rates) over the 1st quarter of 2007
Paris, May 9, 2008, pdf version
BOURBON revenues for the first quarter of 2008 were up 21.4% over the same period in 2007 to 211.7 million euros (+34.5% at constant exchange rates). The Offshore and Bulk Divisions each progressed significantly, primarily due to charters in the Offshore Division. However, performances were impacted by the unfavorable euro/dollar exchange rate.
"BOURBON’s activity continued to be supported by the delivery of the new vessels in the Offshore
Division and by the increase in external charters requested by our customers,"
explains Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON, "in a market with very strong activity by oil companies which should continue over time. In addition, cargo rates in the Bulk Division will remain high in 2008."
QUARTERLY DATA
Breakdown of BOURBON’s first quarter revenues by Division
| 1st Quarter 2008 | ||||
|---|---|---|---|---|
| (in millions of euros) | Q1 2008 | Q1 2007 | Change at current exchange rates | Change at constant exchange |
| Offshore | 136.8 | 110.8 | 23.4% | 34.7% |
| Bulk | 65.6 | 50.4 | 30.3% | 48.9% |
| Other | 9.3 | 13.2 | -29.9% | -21.6% |
| BOURBON TOTAL | 211.7 | 174.4 | 21.4% | 34.5% |
OFFSHORE DIVISION
Revenues for the Offshore Division in the first quarter of 2008 rose 23.4% from the first quarter of 2007 to 136.8 million euros. This growth is the result of the commissioning of new vessels, the renewal of expiring contracts, and the increase in vessels chartered from third parties to meet the needs of our customers.
In the first quarter, the Offshore Division commissioned 9 new vessels (2 supply and 7 crewboats), a rate that will accelerate in the second quarter. Two old vessels were also sold in Brazil and Norway during the quarter.
Revenues from chartered vessels totaled 19.1 million euros over the first three months of 2008, compared with 4.5 million euros in the first quarter of 2007, and 13.4 million euros in the last quarter of 2007.
| Q1 2008 | Q4 2007 | Change | Q1 2007 | Change | |
|---|---|---|---|---|---|
| Revenues | 136.8 | 128.6 | 6.4% | 110.8 | 23.4% |
| Chartered Vessels | 19.1 | 13.4 | 42.5% | 4.5 | 3.2% |
| Bourbon Vessels | 117.6 | 115.2 | 4.6% | 105.8 | 14.1% |
| Euro/Dollar value | 1.50 | 1.45 | - | 1.31 |
The strong performance recorded by the division takes into account the impact of the unfavorable euro/dollar exchange rate.
Breakdown of the Offshore Division’s revenues by geographical region
| 1st Quarter 2008 | ||||
|---|---|---|---|---|
| (in millions of euros) | Q1 2008 | Q1 2007 | Change at current exchange rates | Change at constant exchange |
| Offshore Division | 136.8 | 110.8 | 23.4% | 34.7% |
| Africa | 92.0 | 71.1 | 29.4% | |
| Europe & Med./Middle East | 26.3 | 26.2 | 0.2% | |
| American continent | 10.8 | 9.3 | 15.8% | |
| Asia | 7.7 | 4.1 | 86.5% | |
The Africa region, which represented 67.3% of the revenues, recorded strong growth in its operations in a climate marked by the increase in deepwater offshore investments as well as the investments intended to relaunch production from old fields in the continental offshore. Growth was particularly strong in Nigeria and Angola, but also in Congo and Gabon, where the Anguille field, which came on stream in 1966, will benefit from an investment of over USD 2 billion.
BOURBON’s activity expanded strongly in Mexico and Asia because of the delivery of new vessels.
BULK DIVISION
In the first quarter of 2008, the Bulk Division generated revenue growth of +30.3% (+48.9% at constant exchange rates) and totaled 65.6 million euros, up from 50.4 million euros over the same period in 2007. The average BSI index was USD 50,265/day over the quarter, compared with an average rate in 2007 of USD 47,263/day.
In this favorable context, BOURBON’s Bulk Division is continuing its strategy based on long-term relationships with its clients, who benefit from the coverage offered by owned vessels. In the first quarter of 2008, tonnages shipped remained stable at approximately 4 million tons
OPERATIONS AND MAJOR HIGHLIGHTS
In the context of BOURBON’s withdrawal from its non-strategic businesses, the process for BOURBON’s progressive sale of Sucreries de Bourbon Tay Ninh continued with the initial public offering on the Hô Chi Minh City (Vietnam) stock exchange of 31.6% of the capital, corresponding to the 44,824,172 shares of stock sold by BOURBON in 2007. The company was listed for trading on February, 25, 2008.
OUTLOOK
The market for offshore oil and gas marine services remains highly favorable, both in exploration-
development of deepwater fields and in production and maintenance. High oil prices make it profitable to
relaunch production on old continental offshore fields, generating heavy activity in this sector.
Deliveries and commissioning of vessels will continue in accordance with the Horizon 2012 plan and, in
this context, BOURBON is committing the vessels to be delivered in the coming quarters to long-term
contracts.
In the Bulk Division, BOURBON intends to benefit from favorable market conditions to secure the use of a portion of its future fleet to medium-term contracts.
Finally, activity will continue to be influenced by fluctuations in the euro/dollar exchange rate.
FINANCIAL CALENDAR
- Combined Annual and Special Stockholders’ Meeting:
- May 30, 2008
- 2nd quarter and 1st half 2008 financial results:
- August 7, 2008
- Presentation of first half 2008 results:
- August 27, 2008
APPENDICES
BOURBON quaterly data
| (in million of euros) | 2008 | 2007 | 2006 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 2008 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Offshore | 136.8 | 128.6 | 124.5 | 120.6 | 110.8 | 116.9 | 100.1 | 96.0 | 84.4 | ||
| Bulk | 65.6 | 61.3 | 66.1 | 67.0 | 50.4 | 46.0 | 41.1 | 41.0 | 41.1 | ||
| Other | 9.3 | 8.3 | 9.8 | 9.0 | 13.2 | 11.2 | 7.2 | 7.1 | 16.5 | ||
| BOURBON TOTAL | 211.7 | 198.2 | 200.4 | 196.6 | 174.4 | 174.1 | 148.5 | 144.1 | 142.0 | ||
Key indicators
| Q1 2008 | Q1 2007 | |
|---|---|---|
| Average USD exchange rate for the quarter | 1.4983 | 1.3106 |
| USD exchange rate at closing on March 31 | 1.5812 | 1.3318 |
| Average Brent price for the quarter * | 98.32 $/bl | 58.22 $/bl |
| Average BSI for the quarter | 50 265 $/j | 31 488 $/j |
* Source = Energy Information Administration, Daily Spot Prices of Brent Crude Oil
Submission of the Bourbon Dolphin report to the Norwegian Ministry of Justice
The Bourbon Dolphin capsized on April 12th 2007.
On April 25th 2007 the Norwegian Maritime Directory opened a maritime inquiry in Ålesund aiming to determine the circumstances of the capsize.
On May 4th, the Minister of Justice and Police named a Special Inquiry Commission.
The Inquiry Commission has held several public hearings and the Commission’s report was handed over today to the Minister of Justice, Mr. Knut Storgerget. The Chairman of the Commission, Mrs.Inger Lyng, presented the main conclusions.
Please consult the following documents of the Norwegian Commission for all details:
The report is available in English in a preliminary version:Download the Norwegian Commission report
The official English version should be avalaible at the end of April.
For further information:
Consult the video of the 28th March press conference presenting the Commission’s report on the Norwegian Government website:
Watch the 28th March press conference video
Read the Norwegian Ministry of Justice and Police’s Press release published on March 28th:
March 28th Press Release
Read all elements about Bourbon Dolphin
We will keep you informed of any relevant information that becomes available.
Sharp increase in 2007 results
Revenues +26.5% to €769.7m
Operating income +34.8% to €214.2m
Net income group share +155.6% to €390.8m
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.
OFFSHORE DIVISION
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:
- changes in the euro-dollar parity (1.26 in 2006 versus 1.37 in 2007)
- the impact of an increase in low-margin external charters
- the increase in costs for staff and maintenance, and expenditure incurred as of now to ensure future growth.
Operating income rose to 133.2 million euros, posting growth of 11.6%. This represents 27.5% of revenues.
BULK DIVISION
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%).
OUTLOOK
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.
SHAREHOLDERS’ MEETING
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.
Agenda for March 12, 2008
- 11.00 am: “Annual Results 2007” presentation
The slideshow of the press conference can be viewed on BOURBON website www.bourbon-online.com. - 7.00 pm: Telephone conference “Annual Results 2007” in English
With Mr. Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON
To dial in to the conference call, please use the following number: +33 (0)1 72 26 06 12
More about 2007 annual results
AXA announces the appointment of Jacques de Chateauvieux as Vice-Chairman of its Supervisory Board in view of his becoming Chairman after the Annual General Meeting on April 22, 2008
AXA announced today that Claude Bébéar has decided not to seek the renewal of his mandate as a Member of the Supervisory Board of AXA at the end of the present term on April 22, 2008.
Accordingly, AXA announces that the appointments of Jacques de Chateauvieux as Chairman of the Supervisory Board of AXA and Claude Bébéar as Honorary Chairman will be proposed to the Supervisory Board meeting to be held after the Annual General Meeting of AXA shareholders on April 22, 2008.
Jacques de Chateauvieux will carry on in his present position as Chairman and Chief Executive Officer of BOURBON, at the same time as fulfilling his non-executive role on the Supervisory Board of AXA.
For further information, the AXA press release is available on: www.axa.com/en/
February 28, 2008 Press Release
Sucrerie de Bourbon Tay Ninh (SBT) floats on the Ho Chi Minh City, Vietnam, Stock Exchange
Listing as from February 25, 2008
This listing forms part of BOURBON’s disposal of its non-core business activities
Following its announcement on April 23, 2007, BOURBON’s progressive disposal of the company Sucrerie de Bourbon Tay Ninh (SBT) continues with the announcement that 31.6% of the equity will be floated on the Ho Chi Minh City (Vietnam) Stock Exchange, representing 44,824,172 shares, which BOURBON sold during 2007.
The shares will be listed as from February 25, 2008 at a reference price of VND* 30,000. Pursuant to Vietnamese legislation, if the price varies by more than +/- 20% on this date, the listing may be suspended till the following day.
Sucrerie de Bourbon Tay Ninh (SBT) now consists of two main business activities:
- SBT operates a modern sugar plant that BOURBON established in 1998 with a current production capacity of 100,000 tons of sugar per year.
- SBT is also developing two major real estate projects: an industrial zone of 1,000 hectares in the south of Tay Ninh province, 40 km from the outskirts of Ho Chi Minh City and a complex of commercial and hotel real estate in Tay Ninh itself, the provincial capital situated 100 km North West of Ho Chi Minh City.
In 2007, Sucrerie de Bourbon Tay Ninh (SBT) posted revenues of VND* 674 billion, gross operating cash flow of VND* 261 billion and net income of VND* 192 billion.
As of the IPO, SBT’s equity will be as follows:
| Shareholder | Number of shares | Proportion |
|---|---|---|
| BOURBON | 97,101,628 | 68.4% |
| Public float | 44,824,172 | 31.6% |
| Total | 141,925,800 |
The 31.6% public float corresponds to the sale in installments to strategic Vietnamese investors, investment funds, employees and sugar cane growers that BOURBON announced on April 23, 2007.
Out of BOURBON’s 68.4% stake, 8.7% will be freely traded following a period of 6 months after SBT’s IPO and a further 8.7% 6 months later.
BOURBON’s remaining 51% stake is subject to an agreement whereby BOURBON is obliged to retain 30% of the equity until March 23, 2010. Until this date, BOURBON may reduce its holding below 51% subject to approval at SBT’s shareholders’ general meeting but without going below the 30% limit.
The daily market price of SBT shares can be obtained from the Ho Chi Minh City stock exchange authorities by visiting their website: http://www.hsx.vn/hsx_en
* For information purposes, as of February 19, 2008: VND 23,000 = € 1
February 21, 2008 Press Release
Strong increase in 2007 annual revenues: +26.5% (+35.5% at constant exchange rates)
BOURBON exceeds the objectives of the 2003–2007 plan
4th quarter 2007 revenues up 13.9% (+24.4% at constant exchange rates) over the 4th quarter of 2006
"The very strong increase in revenues for 2007 represents the concrete success of the 2003–2007 plan
, explains Jacques de Chateauvieux, Chairman and Chief Executive Officer, despite the impact of foreign exchange rates over the period and losses in activity related to the Bourbon Dolphin and the Athéna in 2007. In five years, average annual revenue growth for the scope of businesses retained has been 24%, exceeding the 15% initially projected.
”
BOURBON’s 2007 annual revenues totaled 769.7 million euros, up 26.5% (+35.5% at constant exchange rates). The growth in the activity of the two Divisions, Offshore and Bulk, continued to be impacted by changes in the euro/dollar parity.
In the fourth quarter of 2007, revenue increase reached 13.9%, or +24.4% at constant exchange rates.
Within the new scope of the group, particularly since finalizing the sale of the port towage business on December 21, 2007, BOURBON generated 92% of its revenues internationally.
Breakdown of BOURBON’s 2007 annual and fourth quarter 2007 revenues by Division
| Year to date at year-end | Fourth quarter | |||||||
|---|---|---|---|---|---|---|---|---|
| (millions of euros) | End Dec 07 | End Dec 06* | Change at current exchange rate | Change at constant exchange rates | Q4 2007 | Q4 2006* | Change at current exchange rate | Change at constant exchange rates |
| Offshore | 484.5 | 397.3 | 21.9% | 29.5% | 128.6 | 116.9 | 10.0% | 18.6% |
| Bulk | 244.8 | 169.2 | 44.7% | 57.8% | 61.3 | 46.0 | 33.2% | 49.6% |
| Other | 40.4 | 42.0 | -4.0% | 3.2% | 8.3 | 11.2 | -25.9% | -19.0% |
| TOTAL BOURBON | 769.7 | 608.6 | 26.5% | 35.5% | 198.2 | 174.1 | 13.9% | 24.4% |
* Pro forma: excluding port towage business, with the integration of the French coastal protection (salvage tugs) in the Offshore Division.
OFFSHORE DIVISION
Revenues recorded by the Offshore Division for 2007 totaled 484.5 million euros, an increase of 21.9% (+29.5% at constant exchange rates). The growth in this business during the 2003–2007 plan has been +27% a year over the announced objective of +22%, despite the unfavorable change in the value of the dollar.
In 2007, BOURBON took delivery of 13 supply vessels and 24 crewboats (versus 16 supply vessels and 15 crewboats in 2006). In addition, the revenues generated by chartered vessels amounted to 41 million euros in 2007, compared to 21 million euros in 2006. These charters meet the needs of the clients for which BOURBON is waiting for delivery of owned vessels.
Over the 4th quarter of 2007, revenues recorded by the Offshore Division rose 10.0% to 128.6 million euros, or +18.6% at constant exchange rates. Revenues for the quarter were impacted by the change in the exchange rate (1.45 in 4th quarter 2007 compared with 1.29 for the same period in 2006).
| Year to date at end of December | Fourth quarter | |||||||
|---|---|---|---|---|---|---|---|---|
| (millions of euros) | End Dec. 07 | End Dec. 06* | Change at current exchange rates | Change at constant exchange rates | Q4 2007 | Q4 2006* | Change at current exchange rates | Change at constant exchange rates |
| Offshore | 484.5 | 397.3 | 21.9% | 29.5% | 128.6 | 116.9 | 10.0% | 18.6% |
| Africa | 320.9 | 262.4 | 22.3% | - | 83.8 | 74.9 | 11.9% | - |
| Europe & Med./Middle East | 101.1 | 92.0 | 9.9% | - | 27.0 | 29.8 | -9.2% | - |
| American Continent | 39.2 | 33.9 | 15.6% | - | 10.2 | 8.8 | 15.4% | - |
| Asia | 23.2 | 9.0 | 159.7% | - | 7.6 | 3.4 | 123.6% | - |
* Pro forma: excluding port towage business, with the integration of the French coastal protection (salvage tugs) in the Offshore Division.
Breakdown of the Offshore Division’s revenues by geographical region
In 2007, the African Zone rose 22.3%, representing 66% of the revenues generated by the Offshore Division. Traditionally supported by Nigeria and Angola, the Offshore Division in West Africa expanded into Equatorial Guinea and Congo to establish a position in the most active regional deepwater offshore market in the world. Africa, BOURBON’s historical operating region, continued to be a high-growth market, despite difficulties related to the