Paris, March 23rd 2006, pdf file
Strong operating income rise +30.5% to 148.2 million euros
| in millions of euros (1) | End of Dec 2005 | End of Dec 2004 Pro forma | Change | End of Dec 2004 Published |
|---|---|---|---|---|
| Revenues | 1 022,0 | 918,8 | +11,2% | 1 114,2 |
| Gross operating income | 240,3 | 187,3 | +28,3% | 223,8 |
| Operating income | 148,2 | 113,6 | +30,5% | 131,0 |
| Net income before gains on asset disposals | 120,9 | 94,7 | +27,7% | 98,7 |
| Gains on investment disposals | 94,1 | 6,9 | - | 6,9 |
| Net income | 215,0 | 101,6 | +111,6% | 105,6 |
| Net income, group share | 205,0 | 94,7 | +116,5% | 100,1 |
| Cash flow | 219,6 | 183,1 | +19,9% | 206,6 |
In 2005, BOURBON recorded revenues of 1,022 million euros, an increase of 11.2% over the previous year. The marine activities contributed substantially to the growth in business and in results. Operating income was 148.2 million euros, up 30.5%, and net income before gains from disposals amounted to 120.9 million euros.
With the sale of 36.6% of Vindémia to Casino, the group share of net income for 2005 was 205 million euros. Cash flow improved 19.9% to 219.6 million euros, in line with the objectives of the 2003-2007 plan.
The activities of the 3 Divisions-Offshore, Towage & Salvage and Bulk now represents most of BOURBON’s business following the deconsolidation of the Retail business on October 1, 2005. The revenue growth for the marine activities (17.8% increase with revenues of 575 million euros) was driven primarily by the development of the Offshore Division (+24%). The 2005 operating income for Marine Services was 124.7 million euros, up 48.5%, primarily generated by the very strong growth in the Offshore and Bulk Divisions.
| in millions of euros | Dec 2005 | Dec 2004 Pro forma | Change |
|---|---|---|---|
| Revenues | 277,2 | 223,6 | +24,0% |
| Gross operating income | 115,6 | 82,7 | +39,8% |
| Operating income | 58,5 | 34,9 | +67,6% |
In 2005, offshore oil and gas Marine Services benefited from a favorable environment, marked by strong activity among the oil companies, particularly in deepwater offshore.
The 24% growth in revenues to 277.2 million euros reflects:
In 2005 the customer portfolio was diversified (contracts signed with Shell and BP among others) and BOURBON expanded its presence on the west coast of Africa, particularly in Nigeria.
Operating income for the Offshore Division was 58.5 million euros, up 67.6%, reflecting the restructuring of operations in Norway and the impact of rate changes on BOURBON’s forward contracts.
| in millions of euros | Dec 2005 | Dec 2004 Pro forma | Change |
|---|---|---|---|
| Revenues | 114,9 | 106,8 | +7,6% |
| Gross operating income | 27,9 | 27,6 | +1,1% |
| Operating income | 15,6 | 15,5 | +0,6% |
The growth in the port towage activity reflects the economic activity of the countries in which we operate. In France, the activity grew 3%. Most of the growth in the Division’s revenues was due to international expansion and the commissioning of 2 new vessels to protect the French coastline: the Abeille BOURBON and the Abeille Liberté.
The contract signed in October 2005 in the framework of the bid tender for towage service in the new port of Tangiers led to the order of four tugs and two pilot boats that will be in service in 2007.
| in millions of euros | Dec 2005 | Dec 2004 Pro forma | Change |
|---|---|---|---|
| Revenues | 182,9 | 158,0 | +15,8% |
| Gross operating income | 53,1 | 38,9 | +36,5% |
| Operating income | 50,1 | 35,0 | +43,1% |
Volumes transported in 2005 totaled 14 million tons, compared with 11.6 million in 2004. Revenues rose 15.8% to 182.2 million euros. This figure reflects the drop in average freight rates in 2005 even though these remained at historically high levels.
Operating income surged to 50.1 million euros (+ 43.1%) and includes the impact of the delivery of the 2 new bulk carriers that came into service in March and November of 2005. Our fleet of owned ships and ships operated under long-term charters is a key element in our strategy as a service provider.
| in millions of euros (9 months of activity) | Dec 2005 | Dec 2004 Pro forma | Change |
|---|---|---|---|
| Revenues | 407,6 | 403,2 | +1,1% |
| Gross operating income | 33,0 | 30,6 | +7,8% |
| Operating income | 22,4 | 19,1 | +17,3% |
The Retail business, which is consolidated at 66.6% up to September 30, 2005, recorded a solid operating income that rose 17.3%. As of October 1, 2005, the results of Vindémia are consolidated using the equity method (30% interest).
The results for 2005 have increased the value of the second put, the exercise of which is planned in 2007. They were generated by strong international growth, particularly in Vietnam.
| in millions of euros | Dec 2005 | Dec 2004 Pro forma |
|---|---|---|
| Assets | ||
| Net non-current assets | 1561,2 | 1333,0 |
| Working capital requirements | 54,1 | 53,1 |
| Total | 1615,3 | 1386,1 |
| Liabilities | ||
| Net position | 760,5 | 1386,1 |
| Provisions | 62,2 | 65,9 |
| Net liabilities | 792,6 | 874,1 |
| Total | 1615,3 | 1386,1 |
The year 2005 was highlighted by investments totaling 358 million euros in new vessels and by 200 million euros in gains from the sale of 36.6% of Vindémia. Gross cash flow for the year (219.2 million euros, up 19.9%) combined with the income from disposals inabled BOURBON to reduce its net debt by 81.5 million euros and to lower the debt-to-equity ratio from 1.96 in 2004 to 1.04 at the end of 2005.
The year 2006 will be marked by the favorable impact of the offshore market, in both the traditional zones in the North Sea and the Gulf of Mexico and in the high-growth deepwater offshore zones. On the other hand, average freight rates, while still at satisfactory levels, are expected to drop again in 2006.
In 2006, BOURBON will take delivery of a number of vessels which will close the 2003-2007 plan one year ahead of schedule.
It is within this context that BOURBON has launched the new strategic Horizon 2010 plan with the following major objectives:
At the BOURBON Shareholders’ Meeting to be held on May 23, 2006, the shareholders will be asked to approve the payment of a dividend of 1 euro per share, a +78% increase over 2005, and double the number of shares representing the company’s capital.
As of January 1, 2005, the BOURBON financial statements have been established under IFRS.
The main differences with the data published in 2004 come from:
With an offer of offshore oil and gas marine services, towage, assistance and salvage, and bulk shipping, BOURBON is a major international player in marine services.
Classified by Euronext in the "Oil Services" sector, BOURBON is listed on Eurolist Paris, Compartment A and is included in the MID 100, SBF 120 and Dow Jones Stoxx 600 indices. As of March 28, 2006, the BOURBON share will be included in the Deferred Settlement Service (SRD).