STRONG ANNUAL RESULTS FOR BOURBON

[proud_ionian]

Source: MGN

FRENCH-based offshore support and bulk carrier shipowner Bourbon report 2008 revenues up 21%.

"Bourbon's performance for the year 2008 reflects strong growth in the offshore activities, keeping pace with deliveries of new vessels, with the renewal of old contracts and the use of outside charters when requested by our customers," says chairman and CEO Jacques de Chateauvieux. He adds: "In the Bulk Division, 2008 will remain a record-breaking year as BOURBON was affected by the sharp fall in rates at year-end only with a time lag."

Annual revenues totalled euros931.3m (US$1.2bn), up 21% (+28.5% at constant exchange rates). Bourbon says both its operating divisions are still affected by the dollar trend, which became favourable again starting in the Q4 when revenues rose by 30.3% (+23.5% at constant exchange rates).

Bourbon says 95% of its business is abroad and that its offshore division accounted for 81% of its revenues in Q4.

In 2008, the Marine Services Activity generated an increase in income of 29.7% to euros539.6m, mainly due an influx of new vessels: 20 supply vessels and 40 crew boats.

Looking ahead the company says: “In the offshore market, the change in the per-barrel price of oil to around $45 could impact the overall level of business activity. However, the effect on Bourbon is expected to be limitedness fact, as Bourbon earns nearly 90% of its revenues from major national and international companies whose investment plans should remain strong, it will be only marginally affected by any investment reductions that might be decided by the other independent operators. In addition, Bourbon provides marine services operations for the most part during production or maintenance phases of existing offshore oil fields which are, by nature, less sensitive to trends in oil prices. Lastly, 80% of the existing fleet is already under contract for the year 2009. As scheduled in the Horizon 2012 plan the rhythm of new vessel deliveries will be accelerated with an expected 31 supply, 2 IMR and 44 crewboats in 2009.”

Regarding its Bulk Division, Bourbon says: “The general context of the bulk market is of a decline in global trade volumes, a fall in the Baltic Supramax Index (BSI), and great uncertainty about customer demand and the soundness of the counter-parties to contracts. As far as Bourbon is concerned, the substantial decline in market rates will impact revenues, but the Division's activity is not expected to suffer the full effect of the downturn in the market, thanks mainly to: - The increase in the directly owned fleet by taking delivery of vessels, - Earnings from logistics management services provided to customers over the long term, and - The income from the vessels chartered to third parties over long periods. Bourbon.”

It adds: “In 2009 financial performance should not be significantly impacted by the euro/dollar rate thanks to forward selling of dollars at an approximate rate of euros1 for $1.27.”