1st quarter revenues up 21.4% (+34.5% at constant exchange rates) over the 1st quarter of 2007
Paris, May 9, 2008, pdf version
BOURBON revenues for the first quarter of 2008 were up 21.4% over the same period in 2007 to 211.7 million euros (+34.5% at constant exchange rates). The Offshore and Bulk Divisions each progressed significantly, primarily due to charters in the Offshore Division. However, performances were impacted by the unfavorable euro/dollar exchange rate.
"BOURBON’s activity continued to be supported by the delivery of the new vessels in the Offshore
Division and by the increase in external charters requested by our customers,"
explains Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON, "in a market with very strong activity by oil companies which should continue over time. In addition, cargo rates in the Bulk Division will remain high in 2008."
| 1st Quarter 2008 | ||||
|---|---|---|---|---|
| (in millions of euros) | Q1 2008 | Q1 2007 | Change at current exchange rates | Change at constant exchange |
| Offshore | 136.8 | 110.8 | 23.4% | 34.7% |
| Bulk | 65.6 | 50.4 | 30.3% | 48.9% |
| Other | 9.3 | 13.2 | -29.9% | -21.6% |
| BOURBON TOTAL | 211.7 | 174.4 | 21.4% | 34.5% |
Revenues for the Offshore Division in the first quarter of 2008 rose 23.4% from the first quarter of 2007 to 136.8 million euros. This growth is the result of the commissioning of new vessels, the renewal of expiring contracts, and the increase in vessels chartered from third parties to meet the needs of our customers.
In the first quarter, the Offshore Division commissioned 9 new vessels (2 supply and 7 crewboats), a rate that will accelerate in the second quarter. Two old vessels were also sold in Brazil and Norway during the quarter.
Revenues from chartered vessels totaled 19.1 million euros over the first three months of 2008, compared with 4.5 million euros in the first quarter of 2007, and 13.4 million euros in the last quarter of 2007.
| Q1 2008 | Q4 2007 | Change | Q1 2007 | Change | |
|---|---|---|---|---|---|
| Revenues | 136.8 | 128.6 | 6.4% | 110.8 | 23.4% |
| Chartered Vessels | 19.1 | 13.4 | 42.5% | 4.5 | 3.2% |
| Bourbon Vessels | 117.6 | 115.2 | 4.6% | 105.8 | 14.1% |
| Euro/Dollar value | 1.50 | 1.45 | - | 1.31 |
The strong performance recorded by the division takes into account the impact of the unfavorable euro/dollar exchange rate.
| 1st Quarter 2008 | ||||
|---|---|---|---|---|
| (in millions of euros) | Q1 2008 | Q1 2007 | Change at current exchange rates | Change at constant exchange |
| Offshore Division | 136.8 | 110.8 | 23.4% | 34.7% |
| Africa | 92.0 | 71.1 | 29.4% | |
| Europe & Med./Middle East | 26.3 | 26.2 | 0.2% | |
| American continent | 10.8 | 9.3 | 15.8% | |
| Asia | 7.7 | 4.1 | 86.5% | |
The Africa region, which represented 67.3% of the revenues, recorded strong growth in its operations in a climate marked by the increase in deepwater offshore investments as well as the investments intended to relaunch production from old fields in the continental offshore. Growth was particularly strong in Nigeria and Angola, but also in Congo and Gabon, where the Anguille field, which came on stream in 1966, will benefit from an investment of over USD 2 billion.
BOURBON’s activity expanded strongly in Mexico and Asia because of the delivery of new vessels.
In the first quarter of 2008, the Bulk Division generated revenue growth of +30.3% (+48.9% at constant exchange rates) and totaled 65.6 million euros, up from 50.4 million euros over the same period in 2007. The average BSI index was USD 50,265/day over the quarter, compared with an average rate in 2007 of USD 47,263/day.
In this favorable context, BOURBON’s Bulk Division is continuing its strategy based on long-term relationships with its clients, who benefit from the coverage offered by owned vessels. In the first quarter of 2008, tonnages shipped remained stable at approximately 4 million tons
In the context of BOURBON’s withdrawal from its non-strategic businesses, the process for BOURBON’s progressive sale of Sucreries de Bourbon Tay Ninh continued with the initial public offering on the Hô Chi Minh City (Vietnam) stock exchange of 31.6% of the capital, corresponding to the 44,824,172 shares of stock sold by BOURBON in 2007. The company was listed for trading on February, 25, 2008.
The market for offshore oil and gas marine services remains highly favorable, both in exploration-
development of deepwater fields and in production and maintenance. High oil prices make it profitable to
relaunch production on old continental offshore fields, generating heavy activity in this sector.
Deliveries and commissioning of vessels will continue in accordance with the Horizon 2012 plan and, in
this context, BOURBON is committing the vessels to be delivered in the coming quarters to long-term
contracts.
In the Bulk Division, BOURBON intends to benefit from favorable market conditions to secure the use of a portion of its future fleet to medium-term contracts.
Finally, activity will continue to be influenced by fluctuations in the euro/dollar exchange rate.
| (in million of euros) | 2008 | 2007 | 2006 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 2008 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Offshore | 136.8 | 128.6 | 124.5 | 120.6 | 110.8 | 116.9 | 100.1 | 96.0 | 84.4 | ||
| Bulk | 65.6 | 61.3 | 66.1 | 67.0 | 50.4 | 46.0 | 41.1 | 41.0 | 41.1 | ||
| Other | 9.3 | 8.3 | 9.8 | 9.0 | 13.2 | 11.2 | 7.2 | 7.1 | 16.5 | ||
| BOURBON TOTAL | 211.7 | 198.2 | 200.4 | 196.6 | 174.4 | 174.1 | 148.5 | 144.1 | 142.0 | ||
| Q1 2008 | Q1 2007 | |
|---|---|---|
| Average USD exchange rate for the quarter | 1.4983 | 1.3106 |
| USD exchange rate at closing on March 31 | 1.5812 | 1.3318 |
| Average Brent price for the quarter * | 98.32 $/bl | 58.22 $/bl |
| Average BSI for the quarter | 50 265 $/j | 31 488 $/j |
* Source = Energy Information Administration, Daily Spot Prices of Brent Crude Oil