BOURBON: Annual and 4th Quarter 2017 Revenues

Paris, February 8, 2018

BOURBON Annual & 4^th Quarter 2017 Revenues

2017 adjusted revenue totaled €860.6 million (consolidated revenue €793.6 million), down 21.9% from 2016 (-21.3% at constant rates), reflecting a market that remained challenging.
Activity stabilized in the 4^th quarter with adjusted revenue of €196.9 million, compared with €204.3 million in the previous quarter.

• Activity remained low in 2017 further to the contraction of the offshore oil and gas services market.
• Overcapacity in the supply vessel market continued to drive down average daily rates, although they have leveled off in the Crew boats segment since the 1^st quarter.
• In the 4^th quarter, adjusted revenue stabilized (-3.6% compared with the 3^rd quarter and -2.6% at constant rates). This reflected Marine Services revenue, which was up slightly this quarter for the first time in nearly three years.

  (*) Effect of consolidation of jointly controlled companies using the equity method.

"With the oil price averaging $54 a barrel for the year, oil and gas majors are regaining some room for maneuver. The outlook is brighter, although the Offshore services market has yet to benefit from this recovery, slowed by vessel overcapacity which is keeping rates down", said Gaël Bodénès, Chief Executive Officer of Bourbon Corporation.
"Building on the confidence of its clients and partners, BOURBON is responding by rolling out its transformation plan and developing innovative technological solutions capable of offering tangible client benefits."

(a) Adjusted data:
The adjusted financial information is presented by activity and by segment based on the internal reporting system and internal segment information used by the principal operating decision maker to manage and measure the performance of BOURBON (IFRS 8). The internal reporting (and thus the adjusted financial information) records the performance of operational joint ventures over which the group has joint control under the full integration method. Furthermore, the internal reporting (and again the adjusted financial information) does not take into account IAS 29 (Financial Reporting in Hyperinflationary Economies), applicable for the first time in 2017 (retroactively from January,1) to an operational joint venture in Angola.

MARINE SERVICES

        * Vessels operated by BOURBON (including vessels owned or on bareboat charter).

With adjusted revenue down 27.4% and average utilization rates down 9.5 points compared with 2016, the Marine Services segment continued to be impacted by the weakened market conditions. However, the first signs of recovery have emerged with average utilization rates stabilizing in the Shallow water offshore business since the 2^nd quarter, as well in the Deepwater offshore segment since the 1^st quarter of 2017. Fourth-quarter revenue leveled off (+1.4%), reversing the downward trend for the first time in three years.

Marine Services: Deepwater offshore vessels

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Despite a 23.8% drop compared with 2016, adjusted revenue stabilized in the 4^th quarter of 2017. Quarter after quarter, utilization rates also hovered around 61%. Vessel overcapacity continued to weigh on daily rates, though limiting the decrease to -0.8% between the 3^rd and 4^th quarters of 2017.

Marine Services: Shallow water offshore vessels

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Adjusted revenue in the 4^th quarter of 2017 was up slightly from the 3^rd quarter due to contracts being extended in West Africa. Full-year revenue was impacted by vessel overcapacity and strong pressure on daily rates (-20.1%).
Utilization rates increased, showing a slight rise of 3.5 points between the 3^rd and 4^th quarters.

Marine Services: Crew boat vessels

Fourth-quarter adjusted revenue remained stable overall compared with the previous quarter, reflecting average utilization and daily rates that were relatively unchanged from one quarter to the next. BOURBON signed new contracts in the 4^th quarter with its core clients, mainly in Congo and Angola.
At €216.3 million, full-year adjusted revenue was down 12.7%, mainly due to the 6.7 point fall in average utilization rates compared with the previous year. The average daily rate was relatively unchanged from 2016 (+$24/day). Despite the reduction in the average utilization rate, BOURBON maintained its positions by renewing major contracts in West Africa in the second half in a market that continued to shrink in 2017.

Subsea Services

        * Vessels operated by BOURBON (including vessels owned or on bareboat charter).

The fourth quarter of 2017 saw a drop in activity for vessels serving contractors' construction work, as well as the non-renewal of several long-term contracts.
Despite increasing pressure on prices in 2017, average utilization rates rose by 3.6 point compared with 2016 and adjusted revenue stabilized (+1.3% compared with 2016). Full-year revenue in 2017 reflects a mix of chartering and turnkey contracts, mainly in the 1^st half, in line with the Subsea Services diversification strategy.

Other

Activities included are those that do not fit into either Marine Services or Subsea Services. The majority correspond to earnings from various ship management and logistics activities and the cement carrier Endeavor, which was sold in July 2017.

OUTLOOK

There were very few discoveries of new sources of production for the oil majors in 2017. These face the rapid depletion of existing fields and are expected to swiftly resume exploration investment to support future growth in demand. With the oil price returning to a level above $50 a barrel, clients have to decide between Onshore production in the short term and Offshore projects in the medium term.

The Offshore services activity is stabilizing and should gradually recover in the course of 2018. This recovery - even slow - is expected to lead to a very gradual increase in utilization rates, hampered by strong pressure on daily rates due to vessel overcapacity in the market. The speed of this recovery will depend on the number of stacked vessels able to return to service.

In this context, BOURBON is responding to the transformation of the industry, where safety performance remains paramount, by continuing to adapt its business model and pursuing its efforts to streamline operations, reduce costs and preserve cash.

ADDITIONAL INFORMATION

BOURBON's results will continue to be influenced by the €/US$ exchange rate.

FINANCIAL CALENDAR

APPENDIX

Quarterly adjusted revenue breakdown

* Effect of consolidation of joint ventures using the equity method.

Quarterly average utilization rates for the offshore fleet

Quarterly average daily rates for the offshore fleet

Quarterly number of vessels (end of period)

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Yearly adjusted revenue breakdown

* Effect of consolidation of joint ventures using the equity method.

Yearly average utilization rates for the offshore fleet

Yearly average daily rates for the offshore fleet

Yearly deliveries of vessels

Breakdown of adjusted revenues by geographical region

Other key indicators

Quarterly breakdown

Annual breakdown

About BOURBON

Among the market leaders in marine services for offshore oil & gas, BOURBON offers the most demanding oil & gas companies a wide range of marine services, both surface and sub-surface, for offshore oil & gas fields and wind farms. These extensive services rely on a broad range of the latest-generation vessels and the expertise of almost 8,400 skilled employees. Through its 37 operating subsidiaries the group provides local services as close as possible to customers and their operations throughout the world, of the highest standards of service and safety.

BOURBON provides two operating activities (Marine Services and Subsea Services) and also protects the French coastline for the French Navy.

In 2017, BOURBON'S revenue came to €860.6 million and the company operated a fleet of 508 vessels.

Placed by ICB (Industry Classification Benchmark) in the "Oil Services" sector, BOURBON is listed on the Euronext Paris, Compartment B.

Contacts