French vessel owner and provider of marine and subsea services, Bourbon, has seen its half-year revenue rise to a record $824.2 million (€759 million) on favorable foreign exchange rate impact.
However, the company noted that oil price drop has significantly impacted the market environment in the oil services industry which has led its clients to further CAPEX cuts.
To adapt to these market conditions Bourbon said it will focus on cost control by, among other measures, temporarily stacking certain vessels which have no anticipated activity for 3 months. Up to this date the company reported that 26 supply vessels are stacked.
As for the subsea services, Bourbon stacked as many as 5 vessels during the period but also took delivery of the 9th Bourbon Evolution 800 series MPSV on June 30, 2015, with the final vessel in the investment program expected to be delivered in the 2nd half 2015.
Compared with the same period a year ago, subsea revenues of €138 million in the 1st half of 2015 increased 24.5 % primarily as a result of both an increase in the average daily rate and stronger US dollar. Average daily rates increased due to the mix effect of new, larger vessels that joined the fleet. The stacking of several vessels had the primary impact on the decline in utilization rates.
Christian Lefèvre, Chief Executive Officer of Bourbon, commented: “The first half of 2015 was highlighted by a continued slowdown in activity in most regions and negotiations with clients on commercial terms. Throughout this difficult period, BOURBON has demonstrated resilience, evidenced by the revenue progression, thanks to our strategy of operating a safe, modern and efficient fleet.
“While the duration of this downturn is uncertain, BOURBON is constantly adapting to the market and is unwavering in its focus on excellence in service execution and reducing its costs. This focus will not only improve the group’s resilience in the current cycle but will make it even stronger going forward.”