Gross operating income up 40.2% to €137.9 m
Operating income up 59.8% to €93.7 m
Net income (group share) up 90.2% to €99.3 m
Paris, August 30th 2007, pdf file
As stated at the time of the publication of the 1st half 2007 revenues, given the proposal sale of the port towing disclosed on July 19, 2007, and in accordance with IFRS, the classification of port towing as "Activities intended for sale" leads to the presentation of operating income (EBIT), excluding port towing.
Coastal protection activities (Les Abeilles International) are now integrated in the Offshore Division.
BOURBON’s results for the first half therefore take into account those measures which have also been factored into the pro forma data.
"With Gross Operating Income (EBITDA) of 137.9 million euros, an increase of 40.2%, the first half 2007 confirms the results expected under the BOURBON development plan,"
explained Jacques de Chateauvieux, Chairman and Chief Executive Officer. "In an extremely buoyant offshore market, the proposed acquisition of the port towing business by Grupo Boluda Corporación Marítima confirms the choices of the Horizon 2010 strategic plan, under which most of the investments are dedicated to offshore oil and gas marine services".
| In millions of euros | 1st Half 2007 | 1st Half 2006 pro forma |
Change |
|---|---|---|---|
| Revenues | 371.0 | 286.1 | +29.7% |
| Gross operating income (EBITDA) | 137.9 | 98.4 | +40.2% |
| Operating income (EBIT) | 93.7 | 58.6 | +59.8% |
| Net gains from disposals of assets and income from activities intended for sale | 30.8 | 9.3 | |
| Net income | 108.0 | 59.1 | +82.9% |
| Net income (group share) | 99.3 | 52.2 | +90.2% |
| Cash flow | 120.0 | 95.5 | +25.7% |
In the first half 2007, BOURBON recorded revenues of 371.0 million euros, up 29.7% over the same period in 2006, primarily generated by the revenue growth in the Offshore Division and higher freight rates for the Bulk Division.
Gross operating income totalled 137.9 million euros, representing growth of 40.2% in the first half, after accounting for 11.7 million euros in gains on vessel disposals.
BOURBON’s operating income rose substantially by 59.8% to 93.7 million euros.
Net income group share was up 90.2% to 99.3 million euros and includes among others the net gain from the partial disposal of the Sugar activity in Vietnam.
Revenues generated by the Offshore Division, which includes the French coastal protection operations, amounted to 231.4 million euros, an increase of 28.3% over the first half 2006.
This growth was driven primarily by a very favorable market, steady deliveries of new vessels, and the sustained growth in operations in the North Sea, Africa and Asia.
| In millions of euros | 1st Half 2007 | 1st Half 2006 pro forma |
Change |
|---|---|---|---|
| Revenues | 231.4 | 180.3 | +28.3% |
| Gross operating income (EBITDA) | 105.2 | 74.4 | +41.5% |
| As % of revenues | 45.5% | 41.2% | |
| Operating income (EBIT) | 67.3 | 39.3 | +71.1% |
| As % of revenues | 29.1% | 21.8% |
Gross operating income amounted to 105.2 million euros (+41.5%) and includes 11.7 million euros in gains on vessel disposals.
Excluding the vessel disposals, the gross margin for the division was 40.4% compared with 41.4% for the first half 2006.
Operating income rose substantially to 67.3 million euros (+71.1%).
It should be noted, however, that a portion of the revenues is still recorded by vessels under charter, and that the French Coastal protection activities is integrated in the Offshore Division.
The Bulk Division recorded revenues of 117.4 million euros in the first half 2007, an increase of 43.0% over the same period in 2006.
8.23 million tons were shipped in a context of high freight rates at the the first half 2007 (+35% over the average rates for the second half of 2006).
| In millions of euros | 1st Half 2007 | 1st Half 2006 | Change |
|---|---|---|---|
| Revenues | 117.4 | 82.1 | +43.0% |
| Gross operating income (EBITDA) | 29.8 | 17.9 | +66.5% |
| As % of revenues | 25.4% | 21.8% | |
| Operating income (EBIT) | 26.8 | 16.1 | +66.5% |
| As % of revenues | 22.8% | 19.6% |
Gross operating income totalled 29.8 million euros over the half, up from 17.9 million euros from the first half 2006, a change of 66.5%.
The operating income of 26.8 million euros represented a sharp increase of 66.5% from the first half 2006 and represented 22.8% of revenues.
These items are provided for information and for a better understanding of the data published in this press release.
Under no circumstances should these figures be added to those presented above.
The Towage & Salvage Division, in the former accounting presentation, would have shown the following results:
| In million of euros | 1st Half 2007 | 1st Half 2006 | Change |
|---|---|---|---|
| Revenues | 60.7 | 65.6 | -7.6% |
| Gross operating income (EBITDA) | 12.3 | 20.9 | -41.0% |
| As % of revenues | 20.3% | 31.9% | |
| Operating income (EBIT) | 5.7 | 15.2 | -62.4% |
| As % of revenues | 9.4% | 23.1% |
The Towage & Salvage Division would have recorded revenues of 60.7 million euros, down 7.6% from the first half of 2006.
Gross operating income would have been 12.3 million euros, a decline of 41.0% for the first half 2007 from the first half 2006, with the decline in operations in the ports of Le Havre (competition) and Marseille-Fos (port strike last March) impacting all port towing performances.
It should be noted that the investments related to the start-up of operations in the port of Tangiers-Med were made. Operations have started up successfully although the half-year’s expenses are not yet made up for in revenues.
The put option for the 30% of Vindémia still held was exercised in favor of Groupe Casino on July 3, 2007 and will favorably impact BOURBON’s financial results in the second half of this year.
The process to inform and consult with the employee representative bodies of the companies affected by the proposed sale of the port towing operations of Les Abeilles to Grupo Boluda Corporación Marítima, announced on July 19, 2007, is currently in progress. This project would be concluded on the basis of an amount of 270 million euros, net of debt.
Offshore Division operations will benefit progressively from the vessels delivered during the second half (5 supply vessels and 20 crew boats) in a continued strong market context and the Bulk Division will benefit from the high level of freight rates.
Finally, BOURBON’s results continued to be influenced by the dollar / euro parity and by freight rate levels.
With 4700 professionals and a fleet of 265 owned vessels, BOURBON offers, in more than 25 countries, a broad range of offshore oil and gas marine services, towage, assistance, salvage and bulk shipping.
By 2010, in line with its strategic plan BOURBON intends to become the leader in modern offshore oil and gas marine services by offering the most demanding international clients worldwide the services of a full line of new generation, innovative and high-performance vessels.
Classified by Euronext in the "Oil Services" sector, BOURBON is listed on Eurolist Paris, Compartment A and is included in the Deferred Settlement Service (SRD) and the SBF 120 and Dow Jones Stoxx 600 indices.