Bourbon, a leader in offshore oil and gas marine services, released First Half 2012 Results.
“Against the backdrop of a continuing favorable market environment. BOURBON reports growth in line with the BOURBON 2015 Leadership Strategy plan. as the positive impact of the increase in average daily rates applies to an expanding fleet”, says Christian Lefèvre, BOURBON’s Chief Executive Officer. “With the relative slowdown in the rate of commissioning of new vessels, our focus is now more than ever on safety, operational excellence and cost control.”
H1 2012 highlights
With a satisfactory utilization rate, the growth in revenues reflects a favorable trend in rates combined with a positive impact from the dollar, which enabled the Group to post a disproportionate increase in earnings before interest and tax (EBIT) (+27.2% and +48.2%).
The positive effects of BOURBON’s cost-reduction strategy, especially for the Crewboats segment, are apparent in the first half of the year, offsetting the impact of the many scheduled classification dry-dock periods in Subsea Services.
Net income, group share recovered to €17 million, from the €21.4 million loss in the first half of 2011.
Compared to the first half of 2011, revenues are up 17.7% to €568 million, with a strong 20.5% overall increase in Marine Services and Subsea Services. This growth mainly stems from the expansion of the fleet, particularly in the Shallow water Offshore segment (with 12 more vessels than in H1 2011), the rise in average daily rates and the firmer dollar exchange rate (14.5% at constant exchange rates).
Compared to the second half of 2011, revenues grew 8.1% (+3.9% at constant exchange rates), driven essentially by the Shallow water Offshore and Crewboats segments, which gained 20.1% and 10.2%, respectively. These gains primarily reflect the expansion of the fleet, the improvement in daily rates and the firmer dollar.
The sharp increase in average daily rates in Subsea Services more than offset the impact of Classification dry-dock periods.
Gross operating income (EBITDA)
Compared to the first half of 2011, at €180.8 million, gross operating income (EBITDA) for the first half of 2012 was up 27.2%. This increase is clearly above the gain in revenues, since EBITDA reflects the impact of price increases combined with the strengthening of the dollar, which was however moderated somewhat by cost inflation. The improvement in EBITDA stems exclusively from Marine Services, while Subsea Services EBITDA remained stable, despite the numerous Classification dry-dock periods.
Compared to the second half of 2011, the 14.3% gain in EBITDA was substantially higher than the rise in revenues, reflecting the impact of price increases and the strengthening of the dollar. The increase is mainly due to the Shallow water Offshore vessels and Crewboats segments.
Earnings before interest and tax (EBIT)
Compared to the first half of 2011, at €63.8 million, EBIT for H1 2012 increased 48.2%. As for EBITDA above, the improvement in daily rates combined with the stronger dollar explain this growth rate, largely surpassing the gain in revenues. This robust increase is mainly due to the performance of the Deepwater Offshore vessels and Crewboats segments.
Compared to the second half of 2011, EBIT is up 51%.
Financial income / (loss)
In the first half of the year, financial loss amounted to a net charge of €32.3 million for a cost of net debt of €33.7 million.
The change in currency exchange rates generated net financial income of €2.3 million. Note that the change in foreign exchange rates in H1 2011 resulted in a €30.5 million loss and a €29.2 million gain in H2 2011.
Net income / (loss), Group share
Net income, Group share was positive at €17 million, compared to a €21.4 million loss in the same period the previous year. This marked improvement reflects the growth in EBIT and the absence of foreign exchange losses.
Press Release, September 03, 2012