Bourbon Logs $85 Million Net Loss in 2015

Bourbon Liberty 309
Photo: Bourbon Liberty 309 operating on Zatchi oil field, of the Congo coast. / Credit: Bourbon

For full-year 2015, Bourbon Offshore reported a loss of €76.6 million (US$85 million), attributed to a reduced utilization rate and an unrealized foreign exchange loss.

Adjusted EBITDAR rose 7.5% to €547.7 million, while adjusted EBITDAR/revenues margin improved 2.2 points to 38.1% compared to 2014. Adjusted EBIT declined 54.5% compared with 2014.

The company was able to generate a positive free cash flow of €90 million in “a difficult market”.

Bourbon proposed to maintain dividend payment of €1.00 per share. Under its cost reduction action plan, the company made an 8% reduction in costs in 2015 compared with 2014.

In 2016, the company sees a low point in the cycle for the demand of offshore vessels with a slight rebound in the second half of the year, mainly in the areas of maintenance of production units and of maintaining production of existing oil fields.

For 2016, Bourbon anticipates adjusted revenues to have a moderate decline versus 2015 and the operating margin to decline slightly compared with 2015. The company expects to take delivery of 3 supply vessels and 4 crew boats in 2016.

“BOURBON shows good resilience in a deteriorating market with an EBITDAR of €547.7 million”, BOURBON CEO Christian Lefèvre stated. “The unique positioning of a standardized fleet and cost reduction efforts enabled an increase in the operational margin by 2.2 points. In highly demanding market conditions, BOURBON is demonstrating a solid capacity to adapt quickly, showing, in particular, discipline in spending. Cost reductions and operational efficiency remains a high priority for the upcoming quarters.”