November 9, 2010
Bourbon reports increased offshore segment revenues
Paris-headquartered Bourbon reported today that third quarter revenues came to EUR 222.2 million, up 6.4 percent compared with the same period in 2009 (two percent at constant exchange rates).
Although bickering between Brazilian bureaucrats delayed import of some vessels for a Petrobras contract, activity in the Americas is expanding, accounting for 11 percent of revenues in the first nine months of the year, compared with 6.4 percent in the same period last year.
"In a market environment that continues to be difficult, Bourbon can today report third-quarter 2010 revenue growth of 6.4 percent," said Chairman & CEO Jacques de Chateauvieux. "This confirms the upturn in our Offshore activity, announced previously and already in evidence in the second quarter. It also confirms our strategic choices and reflects our unique positioning on the market. Our clients are enthusiastic about the new Bourbon vessels which are proving to be more innovative, safer and capable of keeping their operating costs down."
"Bourbon predicted a gradual recovery in the oil companies' activity in the second half of 2010 and more substantial growth in 2011," he contnued. "The activity of the third quarter confirms this trend."
Bourbon says that in the first nine months of 2010, revenues for its offshore business segment totaled Euros 624.9 million euros, up 1.6 percent compared with the same period in the previous year. Revenues from Bourbon vessels were 8.4 percent higher thanks to the major expansion of the fleet in unfavorable market conditions. Revenues from chartered vessels were down by nearly 37 million euros. Activity on the American continent is expanding and Bourbon earned 11 percent of its revenues there in the first nine months of 2010, compared with 6.6 percent over the same period in 2009. As well as growth in activity in Mexico and Brazil, the buyout of 50 percent of Delba Maritima Navegacao at the end of 2009 also made a significant contribution.
Compared with the second quarter of 2010, revenues from Bourbon vessels increased by 4.1 percent despite a slight reduction in the fleet's utilization rate, largely due to administrative difficulties encountered on importing the vessels to Brazil.
A delay in implementing the contracts for the eight Bourbon Liberty vessels and five crewboats chartered by Petrobras resulted from a disagreement between the Brazilian Ministries of Finance and Petroleum concerning exemptions from import duty for foreign vessels.
For the last seven quarters, Bourbon has been steadily reducing the number of vessels it charters in.
Compared with the third quarter of 2009, revenues from Subsea Services were up 13.1 percent totalling 45.4 million euros, largely due to better performance of owned vessels and the full effect of the IMR vessel commissioned at the beginning of 2010.
In the first nine months of 2010, revenues from Subsea Services were up 13.8 percent at 124.7 million euros compared with the same period of 2009, due to the Bourbon vessels' improved performance (contract renewals at higher rates and a greater range of services) and the full effect of the IMR vessel that joined the fleet at the beginning of 2010.
Compared with the second quarter of 2010, revenues from Subsea Services were up 3.9 percent reflecting the significant improvement in Bourbon IMR vessels.