AUGUST 6, 2015 — Paris headquartered offshore services giant Bourbon reported record first half 2015 adjusted revenues of €758.8 million, a 13.1% increase on the equivalent period last year, but down 6.8% on second half 2014.
Bourbon says that aside from the impact of a stronger U.S, dollar on revenues, activity remained robust, despite adverse market conditions, on the back of a 2.6% increase in the fleet size, a 3.4 point decrease in the average utilization rate and a 2.6% decrease in the average daily rate (in US$).
"The first half of 2015 was highlighted by a continued slowdown in activity in most regions and negotiations with clients on commercial terms. Throughout this difficult period, Bourbon has demonstrated resilience, evidenced by the revenue progression, thanks to our strategy of operating a safe, modern and efficient fleet", says CEO Christian Lefèvre. "While the duration of this downturn is uncertain, Bourbon is constantly adapting to the market and is unwavering in its focus on excellence in service execution and reducing its costs. This focus will not only improve the group's resilience in the current cycle but will make it even stronger going forward."
Part of Bourbon's strategy has been to stack vessels in various segments when necessary. That policy looks set to continue.
Assessing market outlook, Bourbon says that the environment in the oil services industry has been significantly impacted by the effects of the oil price drop and the resulting reduction in capital investments by clients, which have been reported to decrease 15% for the majors and up to 30% for the independents.
More recently, several large oil companies have been suggesting even further cuts to come for 2016. These cuts are in addition to significant cost reduction plans already underway.
"Bourbon will continue to adapt to conditions and maintain its focus on cost control," says the company. "Among the measures taken, Bourbon will continue to temporarily stack certain vessels which have no anticipated activity for three months. Today, 26 supply vessels are stacked."