French vessel owner and provider of marine and subsea services Bourbon has noted a rise in revenues for the third quarter of the year as expanded fleet and higher average day rates were offset by lower utilization rates.
Bourbon generated $426.3 million (€340.8 million) over the three months to 30 September, up 5% compared to the $406.1 million (€324.6 million) in revenue booked during the third quarter of 2013.
The company has recorded increased day rates in most segments and regions, owing in part to newer, higher day rates for larger vessels and also rate improvement on some contract renewals and extensions.
Revenues from the subsea services for the quarter increased 5.2% versus the same period last year, owing to the removal of 3 smaller vessels (two transferred to Shallow water segment and one sold) and the delivery of 3 new, larger vessels. This accounts for both the increase in average daily rate and the increase in revenues. The reduced utilization rate resulted from a combination of lower level of activity and higher number of drydocks than in the 3,d quarter 2013.
Christian Lefevre, Chief Executive Officer of BOURBON, commented: “In the short term, we are entering a period in which the market will be more complex, taking into account cost reductions by clients and the decrease in the price of oil per barrel”. In this context, BOURBON remains focused on excellence in client service execution and on continued cost control. However, structurally the supply and demand for oil & gas will require recovery in the level of investment in the future.”