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Marine Log

November 8, 2007

Bourbon reports soaring revenues

Paris-based Bourbon reports that third quarter 2007 revenues rose 35% over the same period in 2006 to total EUR 200.4 million euros. This growth was driven by higher revenues in all divisions.

Over the first 9 months of this year, revenues were up 31.5% at current exchange rates (40.2% at constant exchange rates).

Chairman and Chief Executive Officer Jacques de Chateauvieux stated: "This new increase in revenues in the third quarter reflects the excellent level of activity of our two divisions in all our operating regions. Bourbon is benefiting both from the steady rate of new vessel deliveries and a favorable market context that should continue in the fourth quarter."

During the third quarter of 2007, revenues generated by the Offshore Division rose 24.3% over the same period in 2006 (31.1% at constant exchange rates).

This growth is explained by the integration over the last 12 months of 32 new vessels in the Bourbon Offshore fleet, eight of which were delivered in the third quarter.

Revenues recorded by vessels operating under external charters totaled EUR 13.4 million for this quarter. These vessels traditionally generate lower margins than owned vessels.

Third quarter 2007 revenues recorded by the Bulk Division totaled EUR 66.1 million, an increase of more than 60% over the same period in 2006 (72.9% at constant exchange rates).

Because of its long-term contract policy, the Bulk Division did not fully benefit from the high cargo spot prices recorded this quarter.

Cargo tonnages shipped increased to 4.47 million tons, up from 4.11 million tons over the same period in 2006.

On September 28, 2007, the Bulk Division took delivery of the Thermidor, a new 53,500 ton bulk cargo Supramax vessel, which immediately began operations under very favorable conditions.

During the quarter, Bourbon ordered a series of 10 Supramax vessels (deadweight of 58,000 tons) and four Panamax vessels (74,500 tons deadweight).

OUTLOOK: Bourbon says that during the fourth quarter, the Offshore Division business should continue to benefit from a favorable market context and the scheduled deliveries of new vessels. The Nantor, a bulk carrier with a deadweight of 49,000 tons, will be sold in December 2007. The Bulk Division should also benefit from the positive outlook in the Baltic Supramax Index expected in the fourth quarter. Bourbon's revenues will continue to be impacted by changes in the euro/dollar parity.

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