Paris, le 13 septembre 2006, pdf file
“With Gross Operating Income (EBITDA) of 115.1 million euros, up 12.7%, the first half of 2006 confirmed the results expected under the BOURBON growth plan”, announced Jacques de Chateauvieux, Chairman and Chief Executive Officer. “The Offshore Division and Towage & Salvage Division recorded very strong operating results. The commissioning of new vessels in a promising market strengthens our leadership in modern offshore.”
| (en millions d’euros) | End of June 2006 | End of June 2005(*) | Change |
|---|---|---|---|
| Revenues | 341.4 | 301.6 | +13.2% |
| Gross Operating Income (EBITDA) | 115.1 | 102.1 | +12.7% |
| Operating income (EBIT) | 71.2 | 66.2 | +7.6% |
| Net income | 59.1 | 73.2 | -19.3% |
| Net income (group share) | 52.2 | 68.2 | -23.5% |
| Cash flow | 95.5 | 108.7 | -12.1% |
Gross Operating Income totaled 115.1 million euros, up 12.7% in the first half of 2006. This strong performance was achieved by the sharp growth in the Offshore Division, particularly in Africa, and by the solid performance achieved by the Towage & Salvage Division, whereas the Bulk Division was impacted by lower cargo rates.
Operating income rose 7.6% to 71.2 million euros and reflects the increase in amortization and depreciation due to the rise in the number of vessels in the fleet.
The Group share of net income in first half 2006 was 52.2 million euros. The first half of 2005 (68.2 million euros) benefited from unrealized foreign exchange gains and the activation of tax credits made possible by the sale of the Vindémia shares in the second half of 2005. Finally, BOURBON recorded capital expenditures of 252 million euros for this half.
| (millions of euros) | End of June 2006 | End of June 2005 Pro forma | Change |
|---|---|---|---|
| Revenues | 170.0 | 128.4 | +32.4% |
| Gross Operating Income (EBITDA) | 69.2 | 53.7 | +28.9% |
| Operating Income (EBIT) | 35.9 | 26.0 | +38.1% |
The Offshore Division recorded revenues of 170 million euros, an increase of 32.4%. This growth was driven by a favorable market and particularly is a direct result of investments made in this sector, since 57% of our sales were generated by vessels acquired since 2003. This performance induced a sharp improvement of +38% in operating income to 35.9 million euros.
During the first six months, BOURBON took delivery of 15 new vessels (6 supply vessels and 9 passenger transport/ crewboats) in a buoyant market. As of June 30, 2006, the Offshore Division fleet had 175 units in operation and 92 vessels on order.
| (millions of euros) | End of June 2006 | End of June 2005 Pro forma | Change |
|---|---|---|---|
| Revenues | 65.6 | 55.5 | +18.2% |
| Gross Operating Income (EBITDA) | 20.9 | 13.7 | +52.6% |
| Operating Income (EBIT) | 15.2 | 8.3 | +83.1% |
The Towage & Salvage Division posted revenues of 65.6 million euros, up 18.2%, in the first half of 2006.
As the towage business is primarily a fixed-cost business, the growth in revenues generated strong growth in the operating income, which reached 15.2 million euros over the first six months of the year.
This performance was driven by:
| (millions of euros) | End of June 2006 | End of June 2005 Pro forma | Change |
|---|---|---|---|
| Revenues | 82.1 | 97.7 | -16.0% |
| Gross Operating Income (EBITDA) | 17.9 | 28.2 | -36.5% |
| Operating Income (EBIT) | 16.1 | 27.6 | -41.7% |
Revenues for the Bulk Division down 16% to 82.1 million euros, reflecting:
Our operating income of 16.1 million euros remains high, although it was down 41.7% compared to first half 2005 in which historic performance levels were reached on a very high market.
In March 2006, to the general surprise of the sector, the decline in the market turned around and the indexes have continued to climb since then. Because of the long-term contract policy in this segment however, this year’s second-half results will not benefit from this increase in the same proportions.
| (en millions d’euros) | 06/30/2006 | 12/31/2005 |
|---|---|---|
| Net property. plant and equipment | 1534.2 | 1373.1 |
| Other assets (including net assets held for sale) | 202.4 | 188.1 |
| Working Capital Requirements | 77.1 | 54.1 |
| ASSETS - Total capital employed | 1813.7 | 1615.3 |
| Shareholders’ equity | 770.2 | 760.5 |
| Provisions | 69.3 | 62.2 |
| Net financial debt | 974.2 | 792.6 |
| LIABILITIES - Total capital employed | 1813.7 | 1615.3 |
Activity in the second half will benefit from the delivery of 17 new vessels for the Offshore Division (10 supply vessels and 7 passenger transport/ crewboats) and from a positive economic context for the Towage sector.
Asset disposals after June 30, 2006 which include the offshore vessel Bourbon Charisma, the shares held in the Piriou shipyards and the Bourbon Thanh Long retail center in Vietnam will have a positive pre-tax impact of about 25 million euros on results for 2006.
Finally, BOURBON’s earnings continue to be influenced by the dollar/euro parity and the level of cargo rates.
With 3600 professionals dedicated to its clients and its own fleet of 230 vessels, BOURBON offers a broad range of offshore oil and gas marine services, towage, assistance, salvage and bulk shipping.
Operating in more than 25 countries, BOURBON continues to strengthen its position as a major international player in marine services.
By 2010, BOURBON is working to become the leader in modern offshore 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.