BOURBON - Press release: BOURBON Financial information 3rd Quarter 2019

Marseilles, November 7, 2019

BOURBON Financial information 3^rd quarter and 9 months 2019

     Adjusted revenue for Q3 2019 amounted to €177.7 million (consolidated revenue of €164.3 million), down 3.2% compared to Q2

" The market recovery is a reality, but our reactivation efforts and the maintenance of series-built vessels have impacted utilization rates and revenue. In a particularly difficult context for the company, our teams have been intensely mobilized to maintain the service provided to customers. The signing of a 3-year cooperation agreement with one of our largest customers for the deployment of our Smart Shipping program in Angola is a strong symbol of this," declared Gaël Bodénès, Chief Executive Officer of Bourbon Corporation.

 (a) Adjusted data:
The adjusted financial information is presented by Activity and by Segment based on the internal reporting system and shows internal segment information used by the principal operating decision-maker to manage and measure the performance of BOURBON (IFRS 8). Internal reporting (and thus the adjusted financial information) records the performance of operational joint ventures on which the group has joint control using the full integration method. Furthermore, 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.

BOURBON MARINE & LOGISTICS

Adjusted revenue for Q3 2019 increased by 3.8% compared to the previous quarter, driven by 5.8% growth in the deepwater Offshore activity, and notably the 2.1% increase in daily rates.

The average utilization rate increased slightly to 56.4%: the impact of the reactivation of 7 vessels during the quarter is partly offset by an increase in planned maintenance over the period, particularly in the shallow water Offshore segment (Liberty vessels).

The Asia region and North Sea zone were dynamic during the quarter, particularly in Malaysia where demand has been increasing for several months. The Mediterranean/Middle East zone, however, saw the end of several significant projects, particularly in Egypt.

Furthermore, BOURBON announced the signing of a 3-year cooperation agreement with TOTAL in Angola for the deployment of the Smart Shipping program for 5 Bourbon Explorer 500-type vessels.

BOURBON MOBILITY

This quarter was marked by the 1.9% decrease in adjusted revenue compared to the previous quarter, in line with the -1.7 points decrease in the fleet average utilization rate to 51.7%, impacted by the policy of making additional back-up vessels available in order to maintain the service rates expected by customers.

Bourbon Mobility pursued the rationalization of its fleet (over 20 vessels removed in one year) and its repositioning in growth areas (by notably withdrawing from activities in Indonesia and Brazil, and expanding in West Africa).

In parallel, Bourbon Mobility has actively positioned itself in new business models for customers (such as pay per seat, pay per trip, door-to-rig) in markets where the recovery remains weak and where controlling costs is a major concern for its customers.

BOURBON SUBSEA SERVICES

Adjusted revenue for Q3 saw a significant 16.9% decrease compared to the previous quarter. This decrease is mainly due to the end of two long-term charter contracts in India, with more short-term contracts reducing the overall utilization rate (down 5.3 points) as well as delays in the progress of certain turnkey projects (notably in Offshore Wind).

OTHERS

Activities included are those that do not fit into either the Marine & Logistics, Mobility or Subsea Services segments. The majority of the total represents earnings from miscellaneous ship management activities.

OUTLOOK

Growth in global demand for oil remains low with strong volatility in oil prices, which have, however, remained at an average level of around $50-60/barrel.

In this context of very moderate recovery, oil customers regularly validate new exploration projects and continue to arbitrate in favor of Offshore. Offshore investments even grew in 2019, for the first time since 2014, following productivity gains in drilling and production.

However, oil customers remain cautious and continue to favor projects with short returns on investment. Furthermore, they pay attention to and take a keen interest in new models and working methods, aimed at providing new productivity gains.

In this environment, BOURBON continues to focus on:

• control of its operating and general costs;
• discipline in its Capex choices, notably in terms of fleet reactivation and choice of contracts;
• deployment of the strategic plan, and notably the development of new services and business models as well as the Smart shipping program;
• debt restructuring.

2020 year will be marked by high activity in planned maintenance of BOURBON’s series-built vessels.

MAJOR EVENTS

As part of the reorganization proceedings opened since August 7, 2019 for the two holding companies Bourbon Corporation and Bourbon Maritime, a tendering process has been launched:

- on Bourbon Corporation, the deadline for tender offers submission has been extended to November 20^th

- on Bourbon Maritime, the deadline for tender offers submission is November 20th.

ADDITIONAL INFORMATION

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

FINANCIAL CALENDAR

APPENDIX

Quarterly revenue breakdown

*Effect of consolidation of joint ventures using the equity method

Quarterly average utilization rates for the fleet in operation

Quarterly average utilization rates for the fleet

Quarterly average daily rates for the fleet

Quarterly number of vessels (end of period)

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

Nine months’ average utilization rates for the fleet in operation

Nine months’ average utilization rates for the fleet

Nine months average daily rates for the fleet

Breakdown of revenues by geographical region

Other key indicators

Quarterly breakdown

Nine months’ 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 more than 8,400 skilled employees. Through its 29 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 three operating activities (Marine & Logistics, Mobility and Subsea Services) and also protects the French coastline for the French Navy.

In 2018, BOURBON'S revenue came to €689.5 million and the company operated a fleet of 483 vessels.

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

CONTACTS

Attachment

• BOURBON-press-release-q3-2019-07112019