BOURBON: Full Year 2014 - Robust performance driven by good cost control in a challenging environment
(Thomson Reuters ONE) -
Paris, March 4, 2015
BOURBON Full Year 2014: Robust performance driven by good cost control in a
challenging environment
* Adjusted EBITDAR increased 10.9% for the year versus 2013, benefiting from
continued strong cost control during the year and its margin, as a
percentage of revenues, increased almost 2 full points to 36.1%
* EBIT decreased 54% compared with 2013, reflecting higher bareboat charter
costs, less capital gains and provisions made for classification dry dock
costs for vessels on bareboat charter
* Net Income, Group share aided by an improved financial profit, reflects a
stronger US dollar towards the end of 2014 and a reduced cost of debt versus
2013
* Free cash flow reached ?466.1 million, a 5.2% increase over 2013, including
vessel sales, enabling the continued reduction in net debt to ?1.349
billion, totaling ?802 million reduction since June 30, 2013
* Proposed dividend payment of ?1.00 per share to shareholders, stable versus
2013
+-------+----------+--------+-------+-------+----------+--------+
| | |Var H2| | | | |
|H2 2014| H2 2013 | 2014 |H1 2014| 2014 | 2013 |Var 2014|
| |(restated)| / H2 | | |(restated)| / 2013 |
| | | 2013 | | | | |
+--------------+-------+----------+--------+-------+-------+----------+--------+
| | | | | | | | |
| | | | | | | | |
|Operational | | | | | | | |
|indicators | | | | | | | |
| | | | | | | | |
|Number of | 496.7 | 476.1 | +4.3% | 487.9 | 492.2 | 468.2 | +5.1% |
|vessels (FTE)*| | | | | | | |
| | | | | | | | |
|Number of | | | +20 | | | | +20 |
|vessels (end | 505 | 485 |vessels | 501 | 505 | 485 |vessels |
|of period)** | | | | | | | |
| | | | | | | | |
|Technical | | | | | | | |
|availability | 95.8% | 95.5% |+0.3 pt | 95.2% | 95.5% | 94.5% |+1.0 pt |
|rate (%) | | | | | | | |
| | | | | | | | |
|Average | | | | | | | |
|utilization | 80.5% | 83.2% |-2.7 pts| 81.5% | 81.0 | 83.3 |-2.3 pts|
|rate (%) | | | | | | | |
| | | | | | | | |
|Average daily |12,442 | 11,901 | +4.5% |12,207 |12,254 | 11,754 | +4.3% |
|rate $/d | | | | | | | |
| | | | | | | | |
| | | | | | | | |
+--------------+-------+----------+--------+-------+-------+----------+--------+
* FTE: full time equivalent.
** Vessels operated by BOURBON (including
vessels owned or on bareboat charter).
+--------------+-------+----------+--------+-------+-------+----------+--------+
| | | | | | | | |
| | | | | | | | |
|Financial | | | | | | | |
|performance | | | | | | | |
| | | | | | | | |
|Adjusted(a) | 727.6 | 664.1 | +9.6% | 657.7 |1,385.3| 1,311.9 | +5.6% |
|Revenues | | | | | | | |
| | | | | | | | |
|(change at | | | | | | | +6.7% |
|constant rate)| | | | | | | |
| | | | | | | | |
|Adjusted(a) | | | | | | | |
|Costs (excl. |(454.4)| (436.8) | +4.0% |(431.4)|(885.8)| (861.6) | +2.8% |
|bareboat | | | | | | | |
|charters) | | | | | | | |
| | | | | | | | |
|Adjusted(a) | | | | | | | |
|EBITDAR (ex. | 273.2 | 227.3 | +20.2% | 226.3 | 499.5 | 450.3 | +10.9% |
|cap. Gain) | | | | | | | |
| | | | | | | | |
| EBITDAR / | 37.5%| 34.2%|+3.3 pts| 34.4%| 36.1% | 34.3% |+1.8 pts|
|Revenues | | | | | | | |
| | | | | | | | |
|Adjusted(a) | 258.7 | 354.7 | -27.1% | 190.9 | 449.6 | 575.7 | -21.9% |
|EBITDA | | | | | | | |
| | | | | | | | |
|Adjusted(a) | 97.1 | 210.5 | -53.9% | 41.5 | 138.6 | 302.6 | -54.2% |
|EBIT | | | | | | | |
| | | | | | | | |
|IFRS 11 impact| (0.9) | (1.6) | -46.9% | (0.8) | (1.6) | (2.7) | -38.4% |
|*** | | | | | | | |
| | | | | | | | |
|EBIT | 96.2 | 208.9 | -53.9% | 40.7 | 137.0 | 299.9 | -54.3% |
| | | | | | | | |
|Net income | 88.1 | 112.5 | -21.7% | 10.6 | 98.7 | 143.4 | -31.2% |
| | | | | | | | |
|Net income | 78.5 | 100.5 | -21.9% | (4.8) | 73.7 | 115.0 | -35.9% |
|(group share) | | | | | | | |
| | | | | | | | |
| | | | | | | | |
+--------------+-------+----------+--------+-------+-------+----------+--------+
*** Effect of consolidation of jointly controlled companies using the equity
method.
(a) See page 2.
+-------------------------+------+------+--------+------+------+------+--------+
|Average utilization rate |86.6% |90.0% |-3.4 pts|89.9% |87.7% |89.5% |-1.8 pts|
| (excl. crew boats) | | | | | | | |
| | | | | | | | |
| Average daily rate | | | | | | | |
| (excluding crew boats |19,938|19,459| +2.5% |19,541|19,658|19,447| +1.1% |
| $/d) | | | | | | | |
+-------------------------+------+------+--------+------+------+------+--------+
"2014 was highlighted by an improvement in the profitability of the fleet,
reflected by the cost reductions that were already well underway", says
Christian Lefèvre, Chief Executive Officer of BOURBON. "Cost reduction remains a
priority for the upcoming quarters in order for BOURBON to adapt to reduced
activity levels."
a) see appendix I for details
Consolidated results for the 2(nd) half and full year 2014 were established for
the first time according to the new accounting standards IFRS 10, IFRS 11 and
IFRS 12, IAS 27 amended and IAS 28 amended relating to consolidation which
became mandatory as of January 1, 2014. Specifically, joint ventures on which
BOURBON has joint control are now consolidated using the equity method which
replaces the proportionate consolidation method. Comparative figures are
restated accordingly.
The adjusted financial information is presented by Activity and by segment based
on the internal reporting system and shows internal segment information used by
the principal operating decision maker to manage and measure the performance of
BOURBON (IFRS 8). The principles of internal reporting do not reflect the
application of the new IFRS 10, IFRS 11 and IFRS 12, IAS 27 amended and IAS 28
amended. Consequently, joint ventures are still proportionately consolidated, as
in previous years.
2014 market and operational highlights
* A significant decline in the price of oil in the 2(nd) half of 2014 has
further affected investments by the oil & gas companies and deepened their
cost cutting measures
* The high number of deliveries of new deepwater PSVs coming from shipyards is
creating overcapacity in a market that is already under pressure from the
current oil price environment
* BOURBON is focused on operational excellence in service execution:
* Safety remains a strength at BOURBON, with TRIR (Total Recordable
Incident Rate per million hours worked) of 0.76
* Technical availability of 95.5% in 2014; target of 95% at the end of
2015 has been achieved one year in advance
* BOURBON is continuing its focus on cost control through its
standardization policy, which showed in significant cost reductions
during 2014
* Utilization rates excluding Crew boats historically have been within an
87%-92% tunnel, in line with long-term expectations; 2014 performance was in
the lower part of this range
Full year 2014 results highlights
* Adjusted EBITDAR increased almost 11% for the year, with increases in
Deepwater, Shallow water and Subsea, aided by continued cost control
overall and an increase in average utilization rates in the 4(th) quarter
* 2014 saw the impact of the transition of our business model towards more
rented vessels; this translates to an increase in rent charges, with its
corresponding impact on adjusted EBITDA (decreased 21.9% vs. 2013) as well
as provisions for classification dry dock expenses that impacts adjusted
EBIT (decreased 54.2% vs. 2013)
* For the second year, BOURBON generated more than ?400 million in free cash
flow as a result of strong vessel sales, despite a still significant
investment related cash outflow, enabling a further reduction in Net Debt in
2014 of more than ?350 million
*
MARINE SERVICES
+-------+-------+----------+-------+-------+-------+----------+
| | | Var H2 | | | | Var |
Operational |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 | 2014/ |
Business | | | H2 2013 | | | | 2013 |
Indicators | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|Number of | 476.7 | 456.5 | +4.4% | 469.9 | 473.3 | 448.6 | +5.5% |
|vessels FTE * | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|Technical | | | | | | | |
|availability | 95.9% | 95.6% | +0.3 pts | 95.3% | 95.6% | 94.6% | +1.0 pt |
|rate | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|Average | 80.5% | 82.9% | -2.4 pts | 81.2% | 80.8% | 83.0% | -2.2 pts |
|utilization rate| | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
* Vessels operated by BOURBON (including vessels
owned or on bareboat charter).
+-------+-------+----------+-------+-------+-------+----------+
Adjusted | | | | | | | |
Financial | | | Var H2 | | | |Var 2014/ |
Performance |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 | 2013 |
In millions of | | | H2 2013 | | | | |
euros | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|Revenues | 589.3 | 537.4 | +9.7% | 543.1 |1,132.3|1,064.7| +6.4% |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|costs (excluding| | | | | | | |
|bareboat charter|(375.1)|(361.2)| +3.8% |(364.3)|(739.4)|(712.6)| +3.8% |
|costs) | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|EBITDAR | | | | | | | |
| (excluding | 214.2 | 176.2 | +21.6% | 178.7 | 392.9 | 352.0 | +11.6% |
|capital gains) | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|EBITDAR | | | | | | | |
|(excluding | 36.3% | 32.8% | +3.5 pts | 32.9% | 34.7% | 33.1% | +1.6 pts |
|capital gains) /| | | | | | | |
|Revenues | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|EBITDA | 185.3 | 270.3 | -31.4% | 138.9 | 324.1 | 444.2 | -27.0% |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|EBIT | 54.8 | 150.9 | -63.6% | 12.4 | 67.3 | 218.5 | -69.2% |
+----------------+-------+-------+----------+-------+-------+-------+----------+
Adjusted EBITDAR as a percent of adjusted revenues increased overall, with
improvements in both the Deepwater and Shallow water segments as a result of the
focus on cost control. The reduction in adjusted EBITDA versus 2013 was a
combined result of the higher level of bareboat charter costs and lower capital
gains adjusted. EBIT reduced versus the year ago period with slight increase in
depreciation and amortization related to the increase in fleet size as well as
the additional provisions for dry docks for the vessels on bareboat charter.
Marine Services : Deepwater offshore vessels
+-------+-------+----------+-------+-------+-------+----------+
| | | Var H2 | | | | Var |
Operational |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 | 2014/ |
Business | | | H2 2013 | | | | 2013 |
Indicators | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|Number of | 75.3 | 71.6 | +5.2% | 72.2 | 73.7 | 71.8 | +2.6% |
|vessels FTE * | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|Technical | | | | | | | |
|availability | 92.3% | 95.9% | -3.6 pts | 92.9% | 92.6% | 95.2% | -2.6 pts |
|rate | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|Average | 85.8% | 89.4% | -3.6 pts | 87.9% | 86.9% | 88.9% | -2 pts |
|utilization rate| | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|Average daily | | | | | | | |
|rate (in |23,350 |22,482 | +3.9% |23,008 |22,967 |22,156 | +3.7% |
|US$/day) | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
* Vessels operated by BOURBON (including vessels
owned or on bareboat charter).
+-------+-------+----------+-------+-------+-------+----------+
Adjusted | | | | | | | |
Financial | | | Var H2 | | | |Var 2014/ |
Performance |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 | 2013 |
In millions of | | | H2 2013 | | | | |
euros | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|Revenues | 212.4 | 196.3 | +8.2% | 190.7 | 403.2 | 391.6 | +3.0% |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|costs (excluding| | | | | | | |
|bareboat charter|(123.9)|(125.5)| -1.3% |(116.6)|(240.5)|(245.3)| -2.0% |
|costs) | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|EBITDAR | | | | | | | |
| (excluding | 88.5 | 70.7 | +25.1% | 74.1 | 162.6 | 146.2 | +11.2% |
|capital gains) | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|EBITDAR | | | | | | | |
|(excluding | 41.7% | 36.0% | +5.7 pts | 38.8% | 40.3% | 37.3% | +3 pts |
|capital gains) /| | | | | | | |
|Revenues | | | | | | | |
+----------------+-------+-------+----------+-------+-------+-------+----------+
|EBITDA | 76.1 | 122.9 | -38.1% | 50.0 | 126.2 | 196.5 | -35.8% |
+----------------+-------+-------+----------+-------+-------+-------+----------+
A significant 3 point increase in adjusted EBITDAR/revenues ratio compared with
2013 was due to an overall reduction in costs as the fleet grew by 2.6% in FTE
terms, with revenues growth in line with the increase in the fleet. The increase
in bareboat charters and decrease in capital gains on the sale of vessels
contributed to the reduced adjusted EBITDA versus 2013. The reduced technical
availability is a result of the high level of maintenance during the year.
Marine Services : Shallow water offshore vessels
+-------+-------+----------+-------+-------+-------+---------+
| | | Var H2 | | | | |
Operational |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 |Var 2014/|
Business | | | H2 2013 | | | | 2013 |
Indicators | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|Number of vessels| 134.4 | 115.1 | +16.8% | 128.0 | 131.2 | 109.6 | +19.7% |
|FTE * | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|Technical | 96.6% | 96.1% | +0.5 pts | 96.5% | 96.5% | 96.1% |+0.4 pts |
|availability rate| | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|Average | 87.8% | 90.2% | -2.4 pts | 89.5% | 88.6% | 89.8% |-1.2 pts |
|utilization rate | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|Average daily |14,307 |13,877 | +3.1% |14,070 |14,177 |13,978 | +1.4% |
|rate (in US$/day)| | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
* Vessels operated by BOURBON (including vessels
owned or on bareboat charter).
+-------+-------+----------+-------+-------+-------+---------+
Adjusted | | | | | | | |
Financial | | | Var H2 | | | |Var 2014/|
Performance |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 | 2013 |
In millions of | | | H2 2013 | | | | |
euros | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|Revenues | 234.8 | 193.0 | +21.7% | 211.5 | 446.3 | 376.0 | +18.7% |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|costs (excluding | | | | | | | |
|bareboat charter |(154.3)|(129.8)| +18.9% |(142.2)|(296.5)|(257.5)| +15.1% |
|costs) | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|EBITDAR | | | | | | | |
| (excluding | 80.5 | 63.2 | +27.4% | 69.3 | 149.8 | 118.4 | +26.5% |
|capital gains) | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|EBITDAR | | | | | | | |
|(excluding | 34.3% | 32.7% | +1.6 pts | 32.8% | 33.6% | 31.5% |+2.1 pts |
|capital gains) / | | | | | | | |
|Revenues | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|EBITDA | 64.0 | 105.1 | -39.1% | 53.5 | 117.5 | 160.4 | -26.7% |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
The increase in revenues was close to matching the increase fleet size in 2014
compared with 2013 (+19.7% FTEs), while the adjusted EBITDAR/Revenues ratio
increased more than 2 points as a result of continued progress on the cost
control programs at BOURBON. Technical availability rate in this segment has
remained above the 2015 target, making further gains on the high performance
seen in 2013. The rental cost of the additional vessels under bareboat charter
in 2014 and a lower amount of capital gains on the vessels sold have combined to
reduced adjusted EBITDA results compared with last year.
Marine Services : Crew boat vessels
+-------+-------+---------+-------+-------+-------+-----------+
| | |Var H2 | | | | |
Operational |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 |Var 2014/|
Business | | | H2 2013 | | | | 2013 |
Indicators | | | | | | | |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
|Number of | 267.0 | 269.9 | -1.1% | 269.7 | 268.4 | 267.1 | +0.5% |
|vessels FTE * | | | | | | | |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
|Technical | | | | | | | |
|availability | 96.6% | 95.3% |+1.3 pts | 95.4% | 96.0% | 93.8% | +2.2 pts |
|rate | | | | | | | |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
|Average | 75.3% | 78.0% |-2.7 pts | 75.5% | 75.4% | 78.7% | -3.3 pts |
|utilization rate| | | | | | | |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
|Average daily | | | | | | | |
|rate (in | 5,066 | 5,270 | -3.9% | 5,250 | 5,100 | 5,198 | -1.9% |
|US$/day) | | | | | | | |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
* Vessels operated by BOURBON (including vessels
owned or on bareboat charter).
+-------+-------+---------+-------+-------+-------+-----------+
Adjusted | | | | | | | |
Financial | | |Var H2 | | | |Var 2014/|
Performance |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 | 2013 |
In millions of | | | H2 2013 | | | | |
euros | | | | | | | |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
|Revenues | 142.0 | 148.1 | -4.1% | 140.9 | 282.9 | 297.2 | -4.8% |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
|costs (excluding| | | | | | | |
|bareboat charter|(96.9) |(105.9)| -8.5% |(105.5)|(202.4)|(209.8)| -3.5% |
|costs) | | | | | | | |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
|EBITDAR | | | | | | | |
| (excluding | 45.1 | 42.2 | +6.9% | 35.3 | 80.5 | 87.3 | -7.9% |
|capital gains) | | | | | | | |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
|EBITDAR | | | | | | | |
|(excluding | 31.8% | 28.5% |+3.3 pts | 25.1% | 28.4% | 29,4% | -0.9 pts |
|capital gains) /| | | | | | | |
|Revenues | | | | | | | |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
|EBITDA | 45.1 | 42.2 | +6.9% | 35.3 | 80.5 | 87.3 | -7.9% |
+----------------+-------+-------+---------+-------+-------+-------+-----------+
In 2014, there was a significant 3.5% decrease in costs versus 2013, while the
operating fleet size (in FTEs) remained stable. As a result, the adjusted
EBITDAR/revenues ratio only decreased 0.9 points versus 2013 despite revenues
declining 4.8%. The second half of 2014 saw cost control improve even further
with costs lower by 8.5%, boosting adjusted EBITDAR/revenues by 3.3 points year
on year. Technical availability in the Crew boat segment has exceeded the 2015
target a year early by attaining 96% in 2014, a strong increase of 2.2 points
versus the prior year with reduced maintenance during the year.
Subsea Services
+-------+-------+----------+-------+-------+-------+---------+
| | | Var H2 | | | | |
Operational |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 |Var 2014/|
Business | | | H2 2013 | | | | 2013 |
Indicators | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|Number of vessels| 19.0 | 18.6 | +2.2% | 17.0 | 18.0 | 18.6 | -3.2% |
|FTE * | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|Technical | 93.6% | 94.1% | -0.5 pts | 93.3% | 93.5% | 93.4% | +0.1 pt |
|availability rate| | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|Average | 81.7% | 91.3% | -9.6 pts | 88.8% | 85.0% | 90.2% |-5.2 pts |
|utilization rate | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|Average daily |48,622 |42,226 | +15.1% |46,452 |47,470 |41,190 | +15.2% |
|rate (in US$/day)| | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
* Vessels operated by BOURBON (including vessels
owned or on bareboat charter).
+-------+-------+----------+-------+-------+-------+---------+
Adjusted | | | | | | | |
Financial | | | Var H2 | | | |Var 2014/|
Performance |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 | 2013 |
In millions of | | | H2 2013 | | | | |
euros | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|Revenues | 124.9 | 114.3 | +9.2% | 105.3 | 230.2 | 223.3 | +3.1% |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|costs (excluding | | | | | | | |
|bareboat charter |(68.3) |(65.6) | +4.0% |(59.7) |(127.9)|(129.5)| -1.2% |
|costs) | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|EBITDAR | | | | | | | |
| (excluding | 56.6 | 48.7 | +16.3% | 45.6 | 102.2 | 93.8 | +9.0% |
|capital gains) | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|EBITDAR | | | | | | | |
|(excluding | 45.3% | 42.6% | +2.7 pts | 43.3% | 44.4% | 42.0% |+2.4 pts |
|capital gains) / | | | | | | | |
|Revenues | | | | | | | |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|EBITDA | 71.0 | 82.0 | -13.4% | 50.1 | 121.2 | 127.1 | -4.6% |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
|EBIT | 42.3 | 58.9 | -28.3% | 29.8 | 72.0 | 83.6 | -13.9% |
+-----------------+-------+-------+----------+-------+-------+-------+---------+
The combination of new Bourbon Evolution 800 fleet entries and cost reductions
versus the year ago period enabled adjusted EBITDAR to increase 9% and as a
percentage of adjusted revenues, an increase of 2.4 points to 44.4%. The
additional vessels sold and retained under bareboat charter have resulted in
reductions in adjusted EBITDA, with adjusted EBIT reduced further due to the
provisions for dry dock expenses for these same vessels.
Other
+-------+-------+-----------+-------+------+------+-----------+
Adjusted | | | | | | | |
Financial | | | Var H2 | | | |Var 2014/|
Performance |H2 2014|H2 2013| 2014/ |H1 2014| 2014 | 2013 | 2013 |
In millions of | | | H2 2013 | | | | |
euros | | | | | | | |
+----------------+-------+-------+-----------+-------+------+------+-----------+
|Revenues | 13.5 | 12.3 | +9.0% | 9.4 | 22.8 | 24.0 | -4.8% |
+----------------+-------+-------+-----------+-------+------+------+-----------+
|costs (excluding| | | | | | | |
|bareboat charter|(11.1) | (9.9) | +11.5% | (7.4) |(18.5)|(19.5)| -5.2% |
|costs) | | | | | | | |
+----------------+-------+-------+-----------+-------+------+------+-----------+
|EBITDAR | | | | | | | |
| (excluding | 2.4 | 2.4 | -1.2% | 1.9 | 4.3 | 4.5 | -2.9% |
|capital gains) | | | | | | | |
+----------------+-------+-------+-----------+-------+------+------+-----------+
|EBITDAR | | | | | | | |
|(excluding | 17.8% | 19.7% | -1.8 pts | 20.7% |19.0% |18.6% | +0.4 pts |
|capital gains) /| | | | | | | |
|Revenues | | | | | | | |
+----------------+-------+-------+-----------+-------+------+------+-----------+
|EBITDA | 2.4 | 2.5 | -2.0% | 1.9 | 4.3 | 4.5 | -3.4% |
+----------------+-------+-------+-----------+-------+------+------+-----------+
|EBIT | 0.0 | 0.7 | -101% | (0.7) |(0.7) | 0.5 | n/s |
+----------------+-------+-------+-----------+-------+------+------+-----------+
Using chartered vessels has two advantages for BOURBON: it makes it possible to
meet client demands and generate contracts while new vessels are being built and
added to the fleet. Using chartered vessels also enables BOURBON to offer
vessels that are not part of its regular line of services when needed for global
calls for tenders. Volatility of "Other" revenues is largely due to the
variation in the number of chartered vessels during the period.
+----------+----------+
Consolidated Capital Employed | | |
|12/31/2014|12/31/2013|
In millions of euros | | |
+-------------------------------------------------------+----------+----------+
| | | |
| | | |
|Net non-current Assets | 2,777.7| 2,554.7|
| | | |
|Assets held for sale | 28.2| 498.5|
| | | |
|Working Capital | 268.9| 198.9|
| | | |
| | | |
| | | |
|Total Capital Employed | 3,074.8| 3,252.1|
| | | |
| | | |
| | | |
|Shareholders equity | 1,625.0| 1,484.8|
| | | |
|Non-current liabilities (provisions and deferred taxes)| 101.4| 65.3|
| | | |
|Net debt | 1,348.5| 1,702.0|
| | | |
| | | |
| | | |
|Total Capital Employed | 3,074.8| 3,252.1|
| | | |
| | | |
+-------------------------------------------------------+----------+----------+
Net non-current assets increased due to the delivery of vessels beyond that
which are part of the vessel sale and bareboat charter agreements. Meanwhile,
the decrease in assets held for sale reflects the trasnfer of vessels during
2014 that were part of the sale agreements with ICBCL and Standard Chartered
Bank.
The gearing ratio has continued to decline over the course of 2014, reaching
0.83 as of December 31, 2014, declining from 1.15 a year earlier. The gearing
ratio is now almost 50% lower than it was at the end of June 2013 (1.53), after
which the impact of the vessel sale proceeds began to impact net debt. Since the
start of the Asset Smart action plan, $US1,643 million worth of vessels have
been sold, with an additional 5 vessels remaining to be transferred to Minsheng
Financial Leasing for approximately $US145 million under the agreement signed in
the 4(th) quarter 2014.
+---------------+---------------+
Consolidated Sources and uses of Cash | 2014 | 2013 |
In millions of euros | | |
+----------------------------------------------+---------------+---------------+
| | | |
| | | |
|Cash generated by operations |1,123.3 | 959.9 |
| | | |
|Vessels in service (A) | 406.0| 395.1|
| | | |
|Vessels sale | 717.3| 564.8|
| | | |
| | | |
| | | |
|Cash out for : |(156.1) |(179.5) |
| | | |
|Interest | (55.7)| (70.5)|
| | | |
|Taxes (B) | (15.3)| (38.3)|
| | | |
|Dividends | (85.1)| (70.7)|
| | | |
| | | |
| | | |
|Net Cash from activity | 967.1 | 780.5 |
| | | |
| | | |
| | | |
|Net debt change |(430.1) |(307.7) |
| | | |
|Perpetual bond | 98.7 | 0.0 |
| | | |
| | | |
| | | |
|Use of cash for |(641.9) |(478.7) |
| | | |
|Investments | (567.6)| (451.4)|
| | | |
|Working capital (C) | (74.3)| (27.3)|
| | | |
| | | |
| | | |
|Other sources and uses of cash | 6.2 | 6.0 |
| | | |
| | | |
+----------------------------------------------+---------------+---------------+
| | | |
| | | |
|Free cash flow | 466.1 | 442.9 |
| | | |
|Net Cash flow from operating activities | 316.4| 329.5|
|(A+B+C) | | |
| | | |
|Acquisition of property, plant and equipment | (567.6)| (451.4)|
|and intangible assets | | |
| | | |
|Sale of property, plant and equipment and | 717.3| 564.8|
|intangible assets | | |
| | | |
| | | |
+----------------------------------------------+---------------+---------------+
The two primary sources of cash generation for BOURBON are from the vessels in
service as a ship operator and the sale of vessels as a ship owner. From these
sources of cash, the stakeholders such as banks, government entities and
shareholders receive a portion in the form of interest, taxes and dividends.
Another use of cash is for the continued high level of investment in assets for
the business and required working capital increases. These various uses of cash
make the speed of debt reduction less rapid, though still significant.
The free cash flow generated through the combined vessel operator and vessel
owner elements of the business has made a significant improvement since the
beginning of the vessel sale and bareboat charter program, having generated
total free cash flows of over ?900 million in the past 2 years. This has enabled
BOURBON to reduce its net debt by approximately ?802 million since June
30, 2013 while taking delivery of 59 new vessels during this period.
OUTLOOK
The oil service industry is in the midst of a down cycle. Bourbon's past
investment strategy and its focus on operational excellence has prepared it well
to navigate the entire business cycle. Operational resilience factors already in
place puts BOURBON in a good position to face the current challenging market.
One such factor is the well-balanced split of revenue generation among the
different segments and activities in which BOURBON operates. The current
equilibrium represents a significantly greater balance compared with 2006, for
example, when Deepwater revenues made up almost 60% of total revenues. The
result is a increased shares of less volatile markets in the development and
production markets compared to exploration activities.
A second factor is the diversified portfolio of clients. As BOURBON has grown
its range of services offered and its worldwide geographical footprint through
its partnerships, it now services not only international oil companies but also
National Oil companies, medium sized/independent oil companies and contractors.
Safety is the highest priority for both BOURBON and it's clients and the safety
performance of BOURBON's fleet is among the industry leaders, and this is a key
factor in being a preferred supplier of services for clients.
BOURBON's past investment strategy of assembling a fleet of modern, innovative
and safe vessels has proven its value to the market, evidenced by average
utilization rates of its vessels exceeding that for it's peers throughout the
cycle. Vessels equipped with diesel electric propulsion and dynamic positioning
has brought cost reductions to its customers, in addition to the savings
resulting from its industrial maintenance program.
These factors, combined with the financial strength of the company, partly as a
result of the Asset Smart action plan, will help BOURBON to be more resilient
during this phase of the cycle.
The two debt ratio targets announced with the Asset Smart action plan (maximum
debt/equity of 0.5 and maximum net debt/EBITDA of 2.0) remain targets for
BOURBON, though they could be delayed due to current market conditions. For the
same reasons, while the target of bareboat charter costs to reach no more than
30% of EBITDAR remains in place, the timing and planned level of vessel sale and
bareboat charters may be revised over time.
Taking into account the weak oil price and the reduced activity in the oil
services market, BOURBON is adapting, having reinforced its action plan to
reduce costs. BOURBON anticipates a stable or slight decrease in revenues for
2015 and a slight decrease in the margin of EBITDAR/revenues.
MAJOR OPERATIONS AND HIGHLIGHTS
* In late October 2014, BOURBON successfully completed a ?100 million
perpetual, deeply subordinated bond issue; this issue is accounted for as
equity under IFRS standards and the prospectus is available on BOURBON's web
site under 'regulated information'
* BOURBON's sale of vessels to ICBCL is now complete, with the transfer of 46
vessels for total proceeds of US$1.4 billion, comprised of 8 Deepwater
vessels, 31 Shallow water vessels and 7 Subsea vessels
* The sale agreement with Standard Chartered Bank for the sale of 6 vessels
has also been completed as scheduled during 2014, with a total of 3
Deepwater vessels and 3 Shallow water vessels transferred for total proceeds
of US$151 million
* At the beginning of December 2014, BOURBON signed an agreement with Minsheng
Financial Leasing Co. for the sale and bareboat charter of 8 vessels for a
total amount of approximately US$202 million. The ownership of 3 vessels has
been transferred for approximately US$57 million. The remaining 5 vessels
will be transferred to MFL during 2015.
ADDITIONAL INFORMATION
* BOURBON's results will continue to be influenced by the ?/US$ exchange rate
* BOURBON set up ?/US$ hedging contracts at an average exchange rate of ?1 =
1.2332 to partially cover its estimated EBITDA exposure in 2015
* The 2014 financial statements were closed by the Board of Directors on
February 23, 2015
* The auditing procedures have been completed and the audit report relating to
certification is in the process of being issued
* At the next Annual General Meeting, The Board will propose a dividend
payment to shareholders of ?1.00 per share, with an ex-dividend date of June
2, 2015 and a payment date of June 4, 2015
FINANCIAL CALENDAR
2015 1(st) Quarter Revenues press release April 29, 2015
Annual Shareholder's Meeting May 21, 2015
APPENDIX I
Reconciliation of adjusted financial information with the consolidated financial
statements
The adjustment items are the effects of the consolidation of joint ventures
according to the equity method. At December 31, 2014 and for the comparative
period 2013, adjustment elements are:
+-------------+---------------+------------+
|2013 Adjusted|IFRS 11 Impact*| 2013 |
In millions of euros | | |Consolidated|
+-----------------------------------+-------------+---------------+------------+
|Revenues | 1,311.9 | (22.3) | 1,289.6 |
| | | | |
|Direct Costs & General and | | | |
|Administrative costs | (861.6) | 6.7 | (854.9) |
+-----------------------------------+-------------+---------------+------------+
|EBITDAR (excluding capital gains) | 450.3 | (15.6) | 434.7 |
+-----------------------------------+-------------+---------------+------------+
|Bareboat charter costs | (13.1) | - | (13.1) |
+-----------------------------------+-------------+---------------+------------+
|EBITDA (excluding capital gains) | 437.2 | (15.6) | 421.6 |
+-----------------------------------+-------------+---------------+------------+
|Capital gain | 138.5 | - | 138.5 |
+-----------------------------------+-------------+---------------+------------+
|EBITDA | 575.7 | (15.6) | 560.1 |
+-----------------------------------+-------------+---------------+------------+
|Depreciation, Amortization & | | | |
|Provisions | (273.1) | 4.1 | (269.0) |
| | | | |
|Share of results from companies | | | |
|under the equity method | 0.0 | 8.8 | 8.8 |
+-----------------------------------+-------------+---------------+------------+
|EBIT | 302.6 | (2.7) | 299.9 |
+-----------------------------------+-------------+---------------+------------+
*Effect of consolidation of jointly controlled companies using the equity
method.
+-------------+---------------+------------+
|2014 Adjusted|IFRS 11 Impact*| 2014 |
In millions of euros | | |Consolidated|
+-----------------------------------+-------------+---------------+------------+
|Revenues | 1,385.3 | (38.9) | 1,346.4 |
| | | | |
|Direct Costs & General and | | | |
|Administrative costs | (885.8) | 27.6 | (858.3) |
+-----------------------------------+-------------+---------------+------------+
|EBITDAR (excluding capital gains) | 499.5 | (11.3) | 488.1 |
+-----------------------------------+-------------+---------------+------------+
|Bareboat charter costs | (110.6) | - | (110.6) |
+-----------------------------------+-------------+---------------+------------+
|EBITDA (excluding capital gains) | 388.8 | (11.3) | 377.5 |
+-----------------------------------+-------------+---------------+------------+
|Capital gain | 60.8 | - | 60.8 |
+-----------------------------------+-------------+---------------+------------+
|EBITDA | 449.6 | (11.3) | 438.3 |
+-----------------------------------+-------------+---------------+------------+
|Depreciation, Amortization & | | | |
|Provisions | (311.0) | 4.0 | (307.0) |
| | | | |
|Share of results from companies | | | |
|under the equity method | 0.0 | 5.7 | 5.7 |
+-----------------------------------+-------------+---------------+------------+
|EBIT | 138.6 | (1.6) | 137.0 |
+-----------------------------------+-------------+---------------+------------+
*Effect of consolidation of jointly controlled companies using the equity
method.
APPENDIX II
Simplified Income Statement
+-------+------------+---------+----------+-----------+-------+
In millions of | | H2 2013 |Var H2 | | 2013 | Var |
euros (except |H2 2014|(restated) *| 2014 / | 2014 |(restated) | 2014 |
per share data) | | | H2 2013 | | * |/ 2013 |
+----------------+-------+------------+---------+----------+-----------+-------+
| | | | | | | |
| | | | | | | |
|Revenues | 703.8 | 650.2 | +8.2% | 1,346.4 | 1,289.6 | +4.4% |
| | | | | | | |
|Direct costs |(369.1)| (361.1) | +2.2% | (720.5) | (719.2) | +0.2% |
| | | | | | | |
|General & | | | | | | |
|Administrative |(67.3) | (70.1) | -4.0% | (137.8) | (135.7) | +1.5% |
|costs | | | | | | |
| | | | | | | |
|EBITDAR | | | | | | |
|excluding | 267.4 | 219.0 | +22.1% | 488.1 | 434.7 |+12.3% |
|capital gains | | | | | | |
| | | | | | | |
|Bareboat charter|(65.4) | (9.7) | ns | (110.6) | (13.1) | ns |
|costs | | | | | | |
| | | | | | | |
|EBITDA excluding| 202.0 | 209.3 | -3.5% | 377.5 | 421.6 |-10.5% |
|capital gains | | | | | | |
| | | | | | | |
|Capital gain | 50.9 | 137.2 | -62.9% | 60.8 | 138.5 |-56.1% |
| | | | | | | |
|Gross operating | 252.9 | 346.4 | -27.0% | 438.3 | 560.1 |-21.7% |
|income EBITDA | | | | | | |
| | | | | | | |
| | | | | | | |
+----------------+-------+------------+---------+----------+-----------+-------+
| | | | | | | |
| | | | | | | |
|Depreciation, | | | | | | |
|Amortization & |(158.9)| (142.0) | +11.9% | (307.0) | (269.0) |+14.1% |
|Provisions | | | | | | |
| | | | | | | |
|Share of results| | | | | | |
|from companies | 2.2 | 4.5 | -50.9% | 5.7 | 8.8 |-35.9% |
|under the equity| | | | | | |
|method | | | | | | |
| | | | | | | |
|Operating income| 96.2 | 208.9 | -53.9% | 137.0 | 299.9 |-54.3% |
|(EBIT) | | | | | | |
| | | | | | | |
| | | | | | | |
+----------------+-------+------------+---------+----------+-----------+-------+
| | | | | | | |
| | | | | | | |
|Financial | 5.7 | (90.4) | -106.3% | (9.0) | (133.4) |-93.2% |
|profit/loss | | | | | | |
| | | | | | | |
|Income tax |(13.8) | (9.9) | +40.4% | (29.2) | (27.0) | +8.4% |
| | | | | | | |
|Income on equity| - | 3.9 | -100% | - | 3.9 | -100% |
|interests sold | | | | | | |
| | | | | | | |
|Income from | | | | | | |
|discontinued | - | - | - | - | - | - |
|operations | | | | | | |
| | | | | | | |
|Net Income | 88.1 | 112.5 | -21.7% | 98.7 | 143.4 |-31.2% |
| | | | | | | |
| | | | | | | |
+----------------+-------+------------+---------+----------+-----------+-------+
| | | | | | | |
| | | | | | | |
|Minority | (9.6) | (12.0) | -20.0% | (25.0) | (28.4) |-12.1% |
|interests | | | | | | |
| | | | | | | |
|Net income | 78.5 | 100.5 | -21.9% | 73.7 | 115.0 |-35.9% |
|(Group share) | | | | | | |
| | | | | | | |
| | | | | | | |
+----------------+-------+------------+---------+----------+-----------+-------+
| | | | | | | |
| | | | | | | |
|Earnings per | - | - | - | 1.03 | 1.61 | - |
|share | | | | | | |
| | | | | | | |
|Weighted average| | | |
Unternehmensinformation / Kurzprofil:
Datum: 04.03.2015 - 07:01 Uhr
Sprache: Deutsch
News-ID 375998
Anzahl Zeichen: 65545
contact information:
Town:
Paris
Kategorie:
Business News
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