Marseilles, September 26, 2019

             

            BOURBON First Half 2019 Results

Adjusted revenue increased by 3.5% to €361.5 million (consolidated revenue €328.5 million) reflecting the slow and gradual improvement in activity

Adjusted EBITDAR up 15.3% compared to the previous half year

  • Adjusted revenue of €361.5 million, benefiting from a 4% increase in daily rates, average utilization rates up 2.8 points compared to the second half year 2018 and a positive foreign currency effect.
  • The number of laid-up vessels decreased by 10%, reflecting, on the one hand, the progressive return to service of vessels and on the other hand, the implementation of the disposal plan for non-strategic vessels.
  • Adjusted EBITDAR grew at €83.2 million (consolidated EBITDAR of €68.8 million) taking into account financial restructuring costs and favorable non-recurring items.
  • Free cash flow was €36.5 million compared to €33.0 million for the 2nd half year 2018.
  • The group is pursuing negotiations as part of the reorganization proceedings opened since the 7th of August 2019 and has decided to close its financial statements under the going concern basis, given its confidence in its ability meet the necessary conditions for the continuation of its activities.


 H1 2019H2 2018Change
H1 2019/H2 2018		H1 2018Change
H1 2019 /H1 2018
Operational indicators     
Number of vessels (FTE)*472.0495.2-4.7%505.0-6.5%
Total fleet in operation (FTE)308.8314.0-1.7%320.3-3.6%
Number of stacked vessels (FTE)163.3181.2-9.9%184.7-11.6%
Utilization rate of the fleet in operation (%)83.481.5+1.9pt83.0+0.4 pt
Average utilization rate (%)54.551.7+2.8 pts52.7+1.8 pt
Average daily rate ($/d)8,2197,902+4.0%7,888+4.2%
* FTE : Full Time Equivalent  
In € millions, unless otherwise notedH1 2019H2 2018*Change
H1 2019/H2 2018		H1 2018*Change
H1 2019 /H1 2018
Financial performance     
Adjusted revenuesa361.5349.4+3.5%340.1+6.3%
(change at constant rate)  +2.2% +3.0%
Bourbon Marine & Logistics178.9175.0+2.3%182.3-1.9%
Bourbon Mobility93.492.4+1.1%95.3-2.0%
Bourbon Subsea Services83.676.2+9.8%57.4+45.6%
Others5.65.9-5.6%5.0+10.4%
Operational and general costs (278.3)(277.3)+0.4%(269.5)+3.3%
Adjusteda EBITDAR (ex. cap. gain)83.272.1+15.3%70.6+17.8%
EBITDAR / Revenues23.0%20.6% 20.7% 
Bareboat charters -(74.9)ns(73.4)ns
Adjusteda EBITDA84.1(2.2)ns(2.2)ns
Impairment(3.1)(31.0)-90.0%(44.7)-93.1%
Adjusteda EBIT(52.7)(160.4)-67.1%(153.5)-65.7%
EBIT(60.2)(162.2)-62.9%(158.0)-61.9%
Net income (group share)(135.2)(260.7)-48.1%(197.1)-31.4%
* As of January 1, 2019, the Group applies IFRS 16 “Leases” Standard following the modified retrospective transition method. No restatement of 2018 financial statements has been carried out.

 

"The results for the half year illustrate our continued efforts to rationalize the fleet and control costs as well as the commitment of all teams to maintain our standards of operational excellence. The market recovery, whilst slow and very gradual, is a reality. However, rigorous management remains essential to ensuring sustainable growth. We remain extremely vigilant and will maintain true discipline in our investment and our contracts choices, while focusing on transforming our model. The initial successes obtained during the half year are encouraging", declared Gaël Bodénès, Chief Executive Officer of BOURBON Corporation.

(a) Adjusted data:
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). Internal reporting (and thus the adjusted financial information) records the performance of operational joint ventures on which the group has joint control using the full integration method. Furthermore, internal reporting (and again the adjusted financial information) does not take into account IAS 29 (Financial Reporting in Hyperinflationary Economies), applicable for the first time in 2017 (retroactively from January, 1) to an operational joint venture in Angola.
The reconciliation between the adjusted data and the consolidated data can be found in Appendix I on page 9


1st Half 2019 Financial Results


  • Income statement (adjusted data)

      
Adjusted revenue came out at €361.5 million, up 3.5% compared to the previous half year, impacted by a favorable exchange rate (+2.2% increase at constant exchange rates), an improvement in average chartering rates (mainly due to the contribution of Subsea's chartering activities) and an improvement in utilization rates. This last improvement comes, on the one hand, from the disposal and scrapping of non-strategic and unused vessels and on the other, from a slight increase in the number of chartering days.

Operating costs decreased by 2.3% compared to the previous half year, benefiting from the first effects of the Smart shipping program and from a catch-up in the exemption from employer social contributions for European-registered vessels. Excluding this last item, costs would have increased, impacted by the gradual return to service of vessels and Subsea's turnkey projects.

General costs increased by 11.1% mainly due to the costs related to the financial restructuring. However, the implementation of our Smart G&A plan has shown results, enabling us to achieve a recurring general costs/revenue ratio of 15%.

As a result, EBITDAR amounted to €83.2 million, up 15.3% compared to the previous half year.

Adjusted EBIT for the first half year 2019 was €-52.4 million, an improvement of €108.0 million compared to the previous half year, mainly due to the impact of the application of IFRS 16 on January 1, 2019 and the reduced impairment expense.

Net income, group share stood at -€135.2 million, compared to -€260.7 million for the previous half year.

  • Balance Sheet Statement
Consolidated Capital Employed 06/30/201912/31/2018*
In € millions
   
Net non-current Assets2,360.11,704.1
Non-current Assets held for sale1.212.0
Working Capital138.2(79.0)
   

1,637
Total Capital Employed2,499.41,637.1
   
Shareholders’ equity52.8201.0
Non-current liabilities (provisions and deferred taxes)149.5158.5
Net debt2,297.11,277.6
   
Total Capital Employed2,499.41,637.1
   

* No restatement of 2018 financial statements has been carried out following the application of IFRS 16 “Leases”

The application of IFRS 16 Standard ("Leases") on January 1, 2019 had a significant impact on the structure of the balance sheet. Since that date, leases, and specifically bareboat charters, are recognized on the balance sheet (with the exception of contracts under 12 months or concerning low value goods) whereas up to now, only vessels under finance leases were subject to recognition.

At January 1, 2019, the date of the first-time application of IFRS 16, the group recorded a lease liability of €1,083.1 million, representing the discounted amount of lease commitments, offset by non-current right-of-use assets of €866.4 million and a significant decrease in trade payables of €205.6 million which, in particular, recorded unpaid bareboat charters.

Thus, as at June 30, 2019, the net impact of finance leases already recorded in the balance sheet was an increase of €701.3 million in non-current net assets, a decrease in the working capital requirement of €205.6 million and an increase in net debt of €997.9 million.

Shareholders' equity amounted to €52.8 million, down €148.2 million under the impact of the loss recorded during the first half year 2019.

In accordance with IFRS, €1,665 million in borrowings and lease liabilities were classified as current liabilities as at June 30, 2019. These are borrowings and leases for which the payments have been suspended since the start of 2018, some of which have been the subject of calls in guarantee or accelerations since July 2019, as well as other borrowings with "cross default" type clauses that could lead to early redemption.

  • Cash flow (see appendix IV: Simplified Consolidated Cash Flow Statement)
     
     
    • positive cash flows generated by operations were €52.7 million, down slightly by €2.3 million compared to the second half year 2018, despite the increase in activity, under the effect of an unfavorable working capital variation;
    • the sales of 6 vessels (including 3 non-smart and 3 non-strategic vessels) generated €15.1 million over the half year, reflecting the group's continued efforts to rationalize its fleet. The amount of investments, at €-31.3 million, was up by €6 million compared to the previous half year, under the effect of an increase in priority planned dry-dock and vessel reactivations. Cash flows used in investing activities amounted to €-18.4 million;
    • lastly, still reflecting the suspension of debt and lease servicing, cash flows consumed by financing activities amounted to €-58.0 million, of which half is related to the payment of dividends to minority interests.

Consolidated cash was down by €22.5 million over the half year, marked by the following elements:

The group has continued discussions with its creditors, both in France and abroad, during this semester, in order to balance the service of its debt with an expected but gradual recovery in the market and therefore group performance.

However, on August 7, 2019, the Group has announced having obtained from the Court the opening of reorganization proceedings for the holding Bourbon Corporation and sub holding Bourbon Maritime. Bourbon Corporation had requested and obtained the opening of reorganization proceedings further to the guarantees redeemed by Chinese company ICBC Leasing for an initial amount exceeding $800 million, supplemented by an additional claim received on 10 September 2019, bringing the total amount to more than $1.2 billion.

While BOURBON Maritime was subject to a conciliation procedure, the company requested and obtained the opening of reorganization proceedings further to the acceleration by some French creditors of the repayment of their debt, representing an amount of €720 million, as well as contractual interest.
This situation raises a material uncertainty with regards to the going concern. The Group has, however, prepared its consolidated financial statements at June 30, 2019 maintaining the going concern assumption given:

- The confidence it has in its ability to meet the necessary conditions for the continuation of its activities

- The confidence it has in the favorable outcome of the reorganization proceedings

- The active search for new financial partners which led to the receipt of a firm financing offer subject to conditions

 -The cash generated by the activity that allows the group to meet its current operating needs during the next 12 months (beside debt financing).


Outlook


Growth in global demand for oil remains low with strong volatility in oil prices, which have, however, remained at an average level of around $50-60/barrel.

In this context of very moderate recovery, oil customers regularly validate new exploration projects and continue to arbitrate in favor of Offshore. Offshore investments even grew in 2019, for the first time since 2014, following productivity gains in drilling and production.

However, oil customers remain cautious and continue to favor projects with short returns on investment. Furthermore, they pay attention to and take a keen interest in new models and working methods, as they aim to provide new productivity gains.

In this environment, BOURBON continues to focus on:

  • the control of its operating and general costs;
  • discipline in its Capex choices, notably in terms of fleet reactivation and in the choice of contracts;
  • deployment of the strategic plan, and notably the development of new services and business models as well as the Smart shipping program;
  • and the restructuring of its debt.

BOURBON MARINE & LOGISTICS

 
H1 2019H2 2018Change
H1 2019/H2 2018		H1 2018Change
H1 2019/H1 2018
Operational indicators     
      
Number of vessels (FTE)*205.6212.5-3.2%216.5-5.0%
Total fleet in operation (FTE)124.0123.4+0.5%130.0-4.6%
Number of stacked vessels (FTE)81.689.1-8.4%86.5-5.7%
      
Utilization rate of the fleet in operation (%)91.287.4+3.8pts86.4+4.8pts
      
Average utilization rate (%)55.050.8+4.2pts51.9+3.1pts
Deepwater offshore vessels66.960.7+6.2pts63.6+3.3pts
Shallow water offshore vessels46.543.8+2.7pts44.1+2.4pts
      
Average daily rate ($/d)10,15710,122+0.3%10,468-3.0%
Deepwater offshore vessels12,10512,652-4.3%12,993-6.8%
Shallow water offshore vessels8,1797,693+6.3%8,022+2.0%
 * FTE: Full Time Equivalent

  		  
In € millions, unless otherwise notedH1 2019H2 2018Change
H1 2019/H2 2018		H1 2018Change
H1 2019/H1 2018
Financial performance     
      
Adjusted Revenues178.9175.0+2.3%182.3-1.9%
Deepwater offshore vessels107.3105.3+1.9%112.4-4.5%
Shallow water offshore vessels71.669.6+2.9%70.0+2.3%
      
Operational & General Costs(138.7)(140.9)-1.6%(143.1)-3.1%
      
Adjusted EBITDAR (ex. capital gains)40.234.0+18.2%39.3+2.3%
EBITDAR / Revenues22.5%19.4% 21.6% 
      
Bareboat Charters-(52.6)ns(51.9)ns
Adjusted EBITDA39.8(18.5)ns(12.1)ns
      
Impairment(1.0)(24.2)-95.7%(44.7)

 		-97.7%
Adjusted EBIT(47.8)(111.5)-57.2%(112.7)-57.6%

The results of the first half year 2019 reflect the gradual recovery of the activity, particularly in Deepwater offshore with an average growth in utilization rates of 6.2 pts. Rates for Shallow water offshore continued to grow slightly, whilst the marked decrease in Deepwater offshore was mainly due to the Arctic fleet exit and contracts renewal at current market prices. Revenue saw a slight increase compared to the second half year 2018, driven by the West Africa (Nigeria and Gabon) and Latin America (Mexico and Brazil) regions. 8 vessels have been reactivated during the semester.

Operating and general costs benefited from the first positive impacts of the deployment of the Smart shipping program and the catch-up in the exemption from employer costs for owners of European-registered vessels.
The vessel disposal plan continued, with 5 vessels sold during this half year, in lign with the fleet rationalization strategy.

BOURBON MOBILITY

 
H1 2019H2 2018Change
H1 2019/H2 2018		H1 2018Change
H1 2019/H1 2018
Operational indicators     
      
Number of vessels (FTE)*246.9262.7-6.0%267.9-7.8%
Total fleet in operation (FTE)169.8175.9-3.5%175.5-3.2%
Number of stacked vessels (FTE)77.186.8-11.2%92.4-16.7%
      
Utilization rate of the fleet in operation (%)78.377.9+0.4pt82.6-4.3pts
      
Average utilization rate (%)53.952.2+1.7pt54.0-0.1pt
      
Average daily rate ($/d)4,3084,250+1.4%4,391-1.9%
 * FTE : Full Time Equivalent

  		  
In € millions, unless otherwise notedH1 2019H2 2018Change
H1 2019/H2 2018		H1 2018Change
H1 2019/H1 2018
Financial performance     
      
Adjusted Revenues93.492.4+1.1%95.3-2.0%
      
Operational & General Costs(74.1)(77.7)-4.6%(77.7)-4.6%
      
Adjusted EBITDAR (ex. capital gains)19.414.7+32.1%17.6+9.9%
EBITDAR / Revenues20.7%15.9% 18.5% 
      
Bareboat Charters-----
Adjusted EBITDA19.415.3+26.7%17.9+8.2%
      
Impairment(0.9)(5.2)-82.0%--
Adjusted EBIT4.6(22.0)ns(11.8)ns

This half year was marked by slight growth in adjusted revenue of 1.1% compared to the previous half year, with a fleet utilization rate up 1.7 pt to 53.9%, notably driven by Nigeria, which is the country with the strongest growth in West Africa, and despite the contraction of the fleet in operation. Bourbon Mobility accelerated the rationalization of its fleet (around ten vessels scrapped) and its repositioning in growth regions. In parallel, the modernization project for fleet cabins was launched, with the aim of commissioning the first "Business class" cabin mid-2020.

Operating costs were impacted by the continued maintenance and repair efforts for Surfers, but benefited during this half year, as for the other two businesses, from the positive effect of the catch-up of the exemption from employer costs. 8 vessels were reactivated at a regular pace during this half year in accordance with our forecasts.


BOURBON SUBSEA SERVICES

 
H1 2019H2 2018Change
H1 2019/H2 2018		H1 2018Change
H1 2019 H1 2018
Operational indicators     
      
Number of vessels (FTE)*19.520.0-2.3%20.6-5.3%
Total fleet in operation (FTE)15.014.7+2.0%14.9+0.7%
Number of stacked vessels (FTE)4.55.3-13.5%5.7-21.1%
      
Utilization rate of the fleet in operation (%)75.973.9+2.0pts58.9+17.0pts
      
Average utilization rate (%)58.454.6+3.8pts42.6+15.8pts
      
Average daily rate ($/d)34,61531,786+8.9%32,526+6,4%
 * FTE : Full Time Equivalent

  		  
In € millions, unless otherwise notedH1 2019H2 2018Change
H1 2019/H2 2018		H1 2018Change
H1 2019/H1 2018
Financial performance     
      
Adjusted Revenues83.676.2+9.8%57.4

 

(		+45.6%
      
Operational & General Costs(62.6)(55.2)+13.4%(44.9)+39.4%
      
Adjusted EBITDAR (ex. capital gains)21.020.9+0.3%12.5+68.0%
EBITDAR / Revenues25.1%27.5% 21.8% 
      
Bareboat Charters-(22.2)ns(21.5)ns
Adjusted EBITDA22.4(1.5)ns(9.1)ns
     

-		 
Impairment(1.1)(1.6)-29.0%--
Adjusted EBIT(10.9)(24.4)-55.1%(30.0)-63.5%

Adjusted revenue is growing of about 10% compared to previous half year, benefitting of a 3.8 pts improvement of the average utilization rate and a growing average day rates of 8.9%, confirming the slight recovery of the Subsea market. Turnkey projects activity has progressed in Middle East and West Africa with projects of pipelines dismantling in Qatar and Gabon, demonstrating the capacity of engineering Bourbon Subsea Services ‘teams to secure the decommissioning budget of clients. The ROV business (Remote Operated Vehicules) has however been affected by a weaker activity this semester.

Operating and general costs are increasing by 13.4%, impacted by turnkey projects which relies on a large part of external subcontracting

The installation of three 8.3 MW floated wind turbines off Portugal has started at the end of the semester and is pursuing over the second semester, maintaining BOURBON’s positioning as the floating wind turbines installation leader.

Note also that of a non-strategic vessel has been sold during the second quarter 2019.

OTHERS

In € millions, unless otherwise notedH1 2019H2 2018Change
H1 2019/H2 2018		H1 2018Change
H1 2019/H1 2018
Financial performance     
      
Adjusted Revenues5.65.9-5.6%5.0+10.4%
      
Operational & General Costs(3.0)(3.4)-11.8%(3.9)

 

 		-23.1%
      
Adjusted EBITDAR (ex. capital gains)2.62.5+3.7%1.1ns
EBITDAR / Revenues46,4%42.2% 22.4% 
      
Adjusted EBITDA2.62.5+3.7%1.1ns
Adjusted EBIT1.7(2.6)ns1.0

 		+74.3%

Activities included are those that do not fit into either Marine & Logistics, Mobility or Subsea Services segments. The majority of the total represents earnings from miscellaneous ship management activities.

ADDITIONAL INFORMATION

  • A general meeting for holders of Undated Deeply Subordinated Fixed to Floating Rate Bonds took place on July, 17, 2019. It authorized BOURBON to defer the payment of interest initially planned for July 24, 2019. All the decisions taken can be consulted on Bourbon's website: https://www.bourbonoffshore.com/en/investors/bondholders
     
  • The Board of Directors approved on September 25, 2019 the interim consolidated financial statements for the first six-month period ending June 30, 2019, on upon the recommendation of the Audit Committee. The Statutory Auditors performed a limited review of the interim financial statements.
    • The Statutory Auditors' reports conclude in this context, that it is impossible to reach a conclusion on the condensed half-year consolidated financial statements due to uncertainties regarding the going concern in the context of the ongoing collective proceedings of Bourbon Corporation and its subsidiary Bourbon Maritime.
  • BOURBON’s results will continue to be affected by the €/US$ exchange rate.
  • BOURBON Corporation's General management will comment on the results during an audio webcast scheduled today at 9:00 am Paris local time. The presentation will be followed by a Q&A session. The replay of the audio webcast will be available during the day on our website: http://www.bourbonoffshore.com/en/half-year-results-2019

FINANCIAL CALENDAR

2019 3rd Quarter & 9 months revenues press releaseNovember 7, 2019


APPENDIX I
Reconciliation of adjusted financial information with the consolidated financial statements
Adjustment items are related the consolidation of joint ventures according to the equity method. At June 30, 2019 and for the comparative period presented, adjustment items are as follows:

    
In € millionsH1 2019
Adjusted		IFRS Adjustments*H1 2019
Consolidated
Revenues361.5(33.0)328.5
Direct Costs & General and Administrative costs(278.3)18.6(259.7)
EBITDAR (excluding capital gains)83.2(14.3)68.8
Bareboat charter costs---
EBITDA (excluding capital gains)83.2(14.3)68.8
Capital gain0.9-0.9
EBITDA84.1(14.3)69.7
Depreciation, Amortization & Provisions(133.4)2.4(131.0)
Impairment(3.1)-(3.1)
Share of results from companies under the equity method-4.44.4
Profit on transferred interests(0.3)-(0.3)
EBIT(52.7)(7.5)(60.2)
*Effect of consolidation of jointly controlled companies using the equity method (IFRS 11)
 
In € millions - No restatement of 2018 financial statements has been carried out following the application of IFRS 16 “Leases”H2 2018
Adjusted		IFRS
Adjustments*		H2 2018
Consolidated
Revenues349.4(27.1)322.3
Direct Costs & General and Administrative costs(277.3)23.2(254.1)
EBITDAR (excluding capital gains)72.1(3.9)68.2
Bareboat charter costs(74.9)-(74.9)
EBITDA (excluding capital gains)(2.8)(3.9)(6.7)
Capital gain0.6-0.6
EBITDA(2.2)(3.9)(6.1)
Depreciation, Amortization & Provisions(127.2)2.6(124.6)
Impairment(31.0)-(31.0)
Share of results from companies under the equity method** (0.5)(0.5)
EBIT(160.4)(1.8)(162.2)
*Effect of consolidation of jointly controlled companies using the equity method (IFRS 11)
** Included the application of IAS 29   
In € millions- No restatement of 2018 financial statements has been carried out following the application of IFRS 16 “Leases”H1 2018
Adjusted		IFRS Adjustments*H1 2018
Consolidated
Revenues340.1(28.6)311.5
Direct Costs & General and Administrative costs(269.5)20.3(249.2)
EBITDAR (excluding capital gains)70.6(8.3)62.3
Bareboat charter costs(73.4)-(73.4)
EBITDA (excluding capital gains)(2.8)(8.3)(11.1)
Capital gain0.7-0.7
EBITDA(2.2)(8.3)(10.4)
Depreciation, Amortization & Provisions(106.6)2.7(104.0)
Impairment(44.7)-(44.7)
Share of results from companies under the equity method-1.01.0
Profit on transferred interests0.1-0.1
EBIT(153.4)(4.5)(158.0)
*Effect of consolidation of jointly controlled companies using the equity method (IFRS11)

APPENDIX II

Simplified Consolidated Income Statement

In € millions (except per share data)H1 2019H2 2018*Change
H1 2019/H2 2018		H1 2018*Change
H1 2019/H1 2018
      
Revenues328.5322.3+1.9%311.5+5.5%
Direct costs(200.0)(201.2)-0.6%(194.7)+2.7%
General & Administrative costs(59.7)(52.9)+12.7%(54.5)+9.5%
EBITDAR excluding capital gains68.868.2+0.9%62.3+10.4%
Bareboat charter costs-(74.9)-100.0%(73.4)-100.0%
EBITDA excluding capital gains68.8(6.7)ns(11.1)ns
Capital gain0.90.6+59.3%0.7+41.3%
Gross operating income EBITDA69.7(6.1)ns(10.4)ns
      
      
Depreciation, Amortization & Provisions(131.0)(124.6)+5,1%(104.0)+26.0%
Impairment(3.1)(31.0)-90.0%(44.7)-93.1%
Share of results from companies under the equity method4.4(0.5)ns1.0ns
Profit on transferred interests(0.3)-ns0.1ns
Operating income (EBIT) after share of results from companies under equity method(60.2)(162.2)-62.9%(158.0)-61.9%
      
      
Financial profit/loss(62.2)(86.8)-28.3%(29.8)+108.4%
Income tax(6.2)(8.7)-28.5%(5.8)+6.9%
Net Income (128.6)(257.6)-50.2%(193.7)-33.8%
      
      
 Non-controlling interests(6.7)(3.1)ns(3.4)+93.4%
Net income (Group share)(135.2)(260.7)-48.1%(197.1)-31.4%
      
      
Earnings per share(1.75)  (2.55) 
Weighted average number of shares outstanding77,350,596  77,373,341 
      

* No restatement of 2018 financial statements has been carried out following the application of IFRS 16 “Leases”

APPENDIX III

Simplified Consolidated Balance Sheet

In € millions06/30/201912/31/2018* 06/30/201912/31/2018*
      
   SHAREHOLDERS’ EQUITY52.8201.0
      
Net property, plant and equipment1,473.21,638.2Financial debt > 1 year39.944.8
Right-of-Use815.8-   
Other non-current assets84.083.5Other non-current liabilities136.5108.9
      
TOTAL NON-CURRENT ASSETS2,373.01,721.7TOTAL NON-CURRENT LIABILITIES176.4153.7
      
Cash on hand and in banks200.1217.1Financial debt < 1 year2,457.31,449.9
Other currents assets443.3408.4Other current liabilities331.1554.6
      
TOTAL CURRENT ASSETS643.4625.5TOTAL CURRENT LIABILITIES2,788.42,004.5
      
Non-current assets held for sale1.212.0Liabilities directly associated with non-current assets classified as held for sale--
      
   TOTAL LIABILITIES2,964.82,158.2
TOTAL ASSETS3,017.62,359.2TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY3,017.62,359.2

* No restatement of 2018 financial statements has been carried out following the application of IFRS 16 “Leases”


APPENDIX IV

Simplified Consolidated Cash Flow Statement

In € millionsH1 2019H2 2018*H1 2018*
    
Net cash flow from operating activities (A)52.755.080.8
    
    
Cash flow from investing activities   
Acquisition of property, plant and equipment and intangible assets(31.3)(25.3)(21.8)
Sale of property, plant and equipment and intangible assets15.13.310.2
Other cash flow from investing activities(2.2)1.70.2
Net Cash flow from investing activities (B)(18.4)(20.2)(11.4)
    
    
Cash flow from financing activities   
    
Net increase (decrease) in borrowings(19.7)(58.1)(17.2)
Net increase (decrease) in lease liabilities(4.3)--
Perpetual bond issue---
Dividends paid to shareholders of the group---
Dividends paid to non-controlling interests(27.8)(0.5)(3.0)
Cost of net debt(6.1)(4.4)(13.4)
Other cash flow from financing activities-1.0-
    
Net Cash flow used in financing activities (C)(58.0)(61.9)(33.6)
    
    
Impact from the change in exchange rates (D) and other reclassifications1.2(4.5)1.9
Change in net cash (A) + (B) + (C) + (D)(22.5)(31.7)37.7
    
    
Net cash at beginning of period173.2204.9167.2
Change in net cash (22.5)(31.7)37.7
Net cash at end of period150.8173.2204.9
    

* No restatement of 2018 financial statements has been carried out following the application of IFRS 16 “Leases”


APPENDIX V

Consolidated Sources and Uses of Cash

In € millions		H1 2019H 2 2018*H1 2018*
       
Cash generated by operations82.7 54.1 71.1 
Vessels in service (A) 67.5 50.8 60.9
Vessels sale 15.1 3.3 10.2
       
Cash out for :(38.1) (10.5) (19.0) 
Interest (6.1) (4.4) (13.4)
Taxes (B) (4.1) (5.6) (2.6)
Dividends (27.8) (0.5) (3.0)
       
Net Cash from activity44.6 43.6 52.1 
       
Net debt change(0.3) (30.9) (53.0) 
Perpetual bond- - - 
       
Use of cash for(42.0) (15.4) 0.7 
Investments (31.3) (25.3) (21.8)
Working capital (C) (10.7) 9.8 22.5
       
Other sources and uses of cash(2.3) 2.8 0.2 
       
       
Free cash flow36.5 33.0 69.2 
Net Cash flow from operating activities (A+B+C) 52.7 55.0 80.8
Acquisition of property, plant and equipment and
intangible assets		 (31.3) (25.3) (21.8)
Sale of property, plant and equipment and intangible  assets 15.1 3.3 10.2
       

* No restatement of 2018 financial statements has been carried out following the application of IFRS 16 “Leases”


APPENDIX VI

Quarterly revenue breakdown

In € millions 2019 2018
 Q2Q1 Q4Q3Q2Q1
Bourbon Marine & Logistics 91.087.9 88.087.089.992.4
Deepwater offshore vessels 53.653.8 53.052.455.057.4
Shallow water offshore vessels 37.534.1 35.034.635.035.0
Bourbon Mobility 46.147.3 46.146.347.148.2
Subsea Services 43.440.2 38.237.930.227.2
Others 3.02.5 3.62.31.93.1
Total adjusted revenues 183.6178.0 175.9173.5169.3171.0
IFRS 11 impact* (17.3)(15.7) (13.7)(13.4)(15.4)(13.3)
TOTAL CONSOLIDATED 166.3162.3 162.2160.2153.9157.6

*Effect of consolidation of joint ventures using the equity method

Quarterly average utilization rates for the offshore fleet in operation

In % 2019 2018
 Q2Q1 Q4Q3Q2Q1
Bourbon Marine & Logistics 90.890.4 88.186.784.989.0
Deepwater offshore vessels 90.592.0 86.686.983.588.1
Shallow water offshore vessels 91.088.8 89.786.686.290.0
Bourbon Mobility 76.679.6 78.077.881.184.3
Subsea Services 73.378.5 74.073.960.955.7
Average utilization rate 82.283.9 81.881.281.784.9

Quarterly average utilization rates for the offshore fleet

In % 2019 2018
 Q2Q1 Q4Q3Q2Q1
Bourbon Marine & Logistics 56.053.9 50.551.051.652.7
Deepwater offshore vessels 66.966.9 61.060.463.065.2
Shallow water offshore vessels 48.344.7 43.244.443.944.3
Bourbon Mobility 53.454.7 52.551.853.854.4
Subsea Services 57.958.9 54.954.345.439.0
Average utilization rate 54.754.5 51.751.652.553.0

Quarterly average daily rates for the offshore fleet

In US$/day 2019 2018
 Q2Q1 Q4Q3Q2Q1
Bourbon Marine & Logistics 10,13010,188 10,17710,12810,36010,911
Deepwater offshore vessels 12,13012,123 12,70112,70512,87313,577
Shallow water offshore vessels 8,1868,136 7,6947,7097,9248,292
Bourbon Mobility 4,2814,351 4,2394,2854,3264,549
Bourbon Subsea Services 35,95233,346 33,20730,32130,57134,933
Average daily rate 8,2628,172 7,9897,8547,7868,179

Quarterly number of vessels (end of period)

In number of vessels* 2019 2018
 Q2Q1 Q4Q3Q2Q1
Bourbon Marine & Logistics 203204 211212214216
Deepwater offshore vessels 8484 

 		87878787
Shallow water offshore vessels119120124125127129
Bourbon Mobility244248252260266269
Bourbon Subsea Services 1920 20202021
FLEET TOTAL 466472 483492500506

*Vessels operated by BOURBON (including vessels owned or on bareboat charter)

Half-year adjusted revenue breakdown

In € millions 2019
H1		 2018
  H2H1
Bourbon Marine & Logistics 178.9 175.0182.3
Deepwater offshore vessels 107.3 105.3112.4
Shallow water offshore vessels 71.6 69.670.0
Bourbon Mobility 93.4 92.495.3
Bourbon Subsea Services 83.6 76.257.4
Other 5.6 5.95.0
Total adjusted revenues 361.5 349.4340.1
IFRS 11 impact* (33.0) (27.1)(28.6)
TOTAL CONSOLIDATED 328.5 322.3311.5

*Effect of consolidation of joint ventures using the equity method

Half-year average utilization rates for the offshore fleet in operation

In % 2019
H1		 2018
  H2H1
Bourbon Marine & Logistics 91.2 87.486.4
Deepwater offshore vessels 91.7 86.884.9
Shallow water offshore vessels 90.6 88.187.9
Bourbon Mobility 78.3 77.982.6
Bourbon Subsea Services 75.9 73.958.9
Average utilization rate 83.4 81.583.0

Half-year average utilization rates for the offshore fleet

In % 2019
H1		 2018
  H2H1
Bourbon Marine & Logistics 55.0 50.851.9
Deepwater offshore vessels 66.9 60.763.6
Shallow water offshore vessels 46.5 43.844.1
Bourbon Mobility 53.9 52.254.0
Bourbon Subsea Services 58.4 54.642.6
Average utilization rate 54.5 51.752.7

Half-year average daily rates for the offshore fleet

In US$/day 2019
H1		 2018
  H2H1
Bourbon Marine & Logistics 10,157 10,12210,468
Deepwater offshore vessels 12,105 12,65212,993
Shallow water offshore vessels 8,179 7,6938,022
Bourbon Mobility 4,308 4,2504,391
Bourbon Subsea Services 34,615 31,78632,526
Average daily rate 8,219 7,9027,888


Breakdown of revenues by geographical region

In € millionsQuarterSemester
Q2 2019Q1 2019ChangeQ2 2018H1 2019H2 2018ChangeH1 2018
Africa96.3101.1-4.7%89.4197.4192.3+2.7%189.4
Europe & Mediterranean/Middle East43.935.2+24.6%36.379.173.9+7.0%62.5
Americas22.723.6-3.9%24.346.343.3+7.0%51.3
Asia20.618.0+14.4%19.238.739.9-3.0%37.1

 


In € millions 2019 2018
 Q2Q1 Q4Q3Q2Q1
Africa 96.3101.1 101.790.689.499.9
Europe & Mediterranean / Middle East 43.935.2 33.440.536.326.2
Americas 22.723.6 21.022.324.327.0
Asia 20.618.0 19.720.219.217.9

Other key indicators

Quarterly breakdown

  2019 2018
  Q2Q1 Q4Q3Q2Q1
Average €/US$ exchange rate for the quarter 1.121.14 1.141.161.191.23
€/US$ exchange rate at closing 1.141.12 1.151.161.171.23
Average price of Brent for the quarter  (in US$/bbl) 6963 69757567

Half-year breakdown

  2019
H1		 2018
   H2H1
Average €/US$ exchange rate for the half year 1.13 1.151.21
€/US$ exchange rate at closing 1.14 1.151.17
Average price of Brent for the half year (in US$/bbl) 66 7271


Financial Glossary

Adjusted data: internal reporting (and thus adjusted financial information) records the performance of operational joint ventures in which the group has joint control by the full consolidation method. 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). In addition, internal reporting does not take account of IAS 29 (Financial Reporting in Hyper-inflationary Economies), which was applicable for the first time in 2017 to an operating joint-venture in Angola.

EBITDA: operating margin before depreciation, amortization and impairment.

EBITDAR: revenue less direct operating costs (except bare-boat rental costs) and general and administrative costs.

EBIT: EBITDA after increases and reversals of amortization, depreciation provisions and impairment and share in income/loss of associates, but excluding capital gains on equity interests sold.

Operating income (EBIT) after share of results from companies under equity method: EBIT after share of results from companies under equity method.

Capital employed: including (i) shareholders' equity, (ii) provisions (including net deferred tax), (iii) net debt; they are also defined as the sum (i) of net non-current assets (including advances on fixed assets), (ii) working capital requirement, and (iii) net assets held for sale.

Free cash-flows: net cash flows from operating activities after including incoming payments and disbursements related to acquisitions and sales of property, plant and equipment and intangible assets.

Utilization rate: over a period, number of revenue-generating days divided by the number of calendar days.

Utilization rate of the fleet in operation: over a period, number of revenue-generating days divided by the number of calendar days, for non-stacked vessels.


ABOUT BOURBON

Among the market leaders in marine services for offshore oil & gas, BOURBON offers the most demanding oil & gas companies a wide range of marine services, both surface and sub-surface, for offshore oil & gas fields and wind farms. These extensive services rely on a broad range of the latest-generation vessels and the expertise of more than 8,400 skilled employees. Through its 29 operating subsidiaries the group provides local services as close as possible to customers and their operations throughout the world, of the highest standards of service and safety.

BOURBON provides three operating activities (Marine & Logistics, Mobility and Subsea Services) and also protects the French coastline for the French Navy.

In 2018, BOURBON'S revenue came to €689.5 million and the company operated a fleet of 483 vessels.

Placed by ICB (Industry Classification Benchmark) in the "Oil Services" sector, BOURBON is listed on the Euronext Paris, Compartment B.

CONTACTS


BOURBONMedia relations agency
Publicis Consultants
Investor Relations, analysts, shareholders Vilizara Lazarova
+33 140 138 607
Investor-relations@bourbon-online.com
+33 144 824 634
vilizara.lazarova@consultants.publicis.fr 
  
  
Corporate Communication  
Christelle Loisel 
+33 491 136 732
christelle.loisel@bourbon-online.com
 
  

Attachment

  • BOURBON Press-release-semester-results-26092019

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