French vessel owner and provider of marine and subsea services, Bourbon, has seen its profit slump on client capex cuts and higher costs.
Despite revenue growth, the company recorded a 31.2 percent net income slip of €98.7 million in 2014, from €143.4 million in 2013, down €44.7 million . Net income (group share) was at € 73.7 million compared to €115 million.
According to Bourbon, positive net income is a result of the continued increase in the operated fleet and a favorable impact of the dollar toward the end of the year.
However, the company reported a significant drop in the net debt to €1,349 million, reduced by 21 percent.
Adjusted Revenues increased by 5.6% at current exchange rates to €1,385.3 million from €1,311.9 million in line with the fleet expansion. The company reported 483 marine vessel and 21 subsea vessels at the end of 2014, 20 more vessels compared to 2013. However the utilization rates have declined in all divisions.
Christian Lefèvre, Chief Executive Officer of Bourbon said: “2014 was highlighted by an improvement in the profitability of the fleet, reflected by the cost reductions that were already well underway”.Cost reduction remains a priority for the upcoming quarters in order for BOURBON to adapt to reduced activity levels.”
The company said that taking into account the weak oil price and the reduced activity in the oil services market, it has reinforced action plan to reduce costs.
Furthermore, Bourbon said it anticipates a stable or slight decrease in revenues for 2015 and a slight decrease in the margin of EBITDAR/revenues.
Earnings per share fell to 1.03 euro from 1.61 euro. Jaccar Holdings remains the major shareholder with 48 percent. The proposed dividen remais at €1.00, unchanged from 2013.