BOURBON : Third Quarter 2014 - revenues up 5.7% year on year

Paris, November 5, 2014

BOURBON Third Quarter 2014: revenues up 5.7% year on year3rd quarter revenues increased by 5.7% as fleet growth and higher average daily rates were partially offset by lower utilization rates. Average daily rates increased in almost all segments and regions, owing in part to newer, larger vessels having higher day rates and also improved rates on some contract renewals and extensions.Utilization rates had mixed results across regions, with Asia and West Africa being adversely affected by increased supply of vessels and reduced activity, respectively.Cost reduction programs by oil companies had an overall impact on all segments.   Quarter9 monthsQ3 2014 Q3 2013 D 2014/
2013 Q2 2014 2014 2013 D 2014/
2013Operational indicators              Number of vessels (FTE)* 494.8 472.2 +4.8% 490.8 489.6 463.5 +5.6% Number of vessels (end of period)** 501 479 +22 vessels 501 501 479 +22 vessels Average utilization rate (%) 79.4 82.9 -3.5 pts 80.2 80.8 83.3 -2.5 pts Average daily rate (US$/day) 12,604 11,884 +6.1% 12,274 12,292 11,679 +5.2%

(*) FTE: Full Time Equivalent.
(**) Vessels operated by Bourbon (including vessels owned or on bareboat charter).

Revenues               Marine Services 283.1 267.0 +6.0% 272.7 826.2 794.3 +4.0%Deepwater offshore vessels104.0100.6+3.4%97.1294.7295.9-0.4%.Shallow water offshore vessels110.393.0+18.6%106.3321.8276.0+16.6%Crew boats68.873.4-6.2%69.3209.7222.5-5.8% Subsea Services 61.9 58.9 +5.2% 53.3 167.2 167.8 -0.4% Other 6.3 6.5 -4.0% 4.6 15.6 18.1 -13.9%Total revenues by Activity/Segment
(change at constant rate)351.3

  332.4

  +5.7%
+5.7% 330.6

  1,009.0

  980.3

  +2.9%
+6.8% Adjustments*** (10.5) (7.8)   (8.1) (25.6) (16.3)  Group TOTAL340.8 324.6 +5.0% 322.6 983.4 964.0 +2.0%

(***) Effect of consolidation of jointly controlled companies using the equity method.
(a) See page 2.

Average utilization rate (excl. crew boats) 85.8% 90.0% -4.2 pts 87.3% 87.8% 89.4% -1.6 pts Average daily rate (excl. crew boats US$/d) 20,247 19,573 +3.4% 19,588 19,728 19,474 +1.3%

"In the short term, we are entering a period in which the market will be more complex, taking into account cost reductions by clients and the decrease in the price of oil per barrel", says Christian Lefèvre, Chief Executive Officer of BOURBON. "In this context, BOURBON remains focused on excellence in client service execution and on  continued cost control. However, structurally the supply and demand for oil & gas will require recovery in the level of investment in the future."

(a) Consolidated revenues for the 3rd quarter of 2014 were established for the first time according to the new accounting standards IFRS 10, IFRS 11 and IFRS 12 relating to consolidation which became mandatory as of January 1, 2014. Specifically, joint ventures on which BOURBON has joint control are now consolidated using the equity method which replaces the proportionate consolidation method. Comparative figures are restated accordingly.
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). The principles of internal reporting do not reflect the application of the new IFRS 10, IFRS 11 and IFRS 12. Consequently, joint ventures are still proportionately consolidated, as in previous years.

MARINE SERVICES Quarter9 monthsQ3 2014 Q3 2013 D 2014/
2013 Q2 2014 2014 2013 D 2014/
2013Revenues (in millions of euro) 283.1 267.0 +6.0% 272.7 826.2 794.3 +4.0% Number of vessels (end of period) * 481 459 +22 vessels 481 481 459 +22 vessels Average utilization rate 79.4% 82.4% -3 pts 80.0% 80.6% 83.0% -2.4 pts

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

Significant deliveries of vessels compared with the same period in 2013 helped to increase revenues by more than 6% despite a generally softening market as oil companies continue to be selective in their investments. Higher Average daily rates in Deepwater and Shallow water included a combination of a mix effect as new and/or larger vessels command higher rates as well as increases on extensions to some existing contracts.

Marine Services: Deepwater offshore vessels Quarter9 monthsQ3 2014 Q3 2013 D 2014/
2013 Q2 2014 2014 2013 D 2014/
2013Revenues (in millions of euro) 104.0 100.6 +3.4% 97.1 294.7 295.9 -0.4% Number of vessels (end of period) * 75 71 +4 vessels 74 75 71 +4 vessels Average utilization rate 85.7% 88.8% -3.1 pts 87.2% 87.1% 88.5% -1.4 pts Average daily rate (US$/day) 23,887 22,683 +5.3% 23,219 23,189 22,093 +5.0%

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

The increase in revenues in Deepwater over the 3rd quarter of 2013 was in line with the increase in the size of the fleet and features partially offsetting factors from a higher average daily rate and a reduced average utilization rate. The average utilization rate was most impacted in West Africa and Asia due to higher maintenance levels, partially offset as the North Sea and Mediterranean/Middle East/India regions both saw an increase in activity.

Marine Services: Shallow water offshore vessels Quarter9 monthsQ3 2014 Q3 2013 D 2014/
2013 Q2 2014 2014 2013 D 2014/
2013Revenues (in millions of euro) 110.3 93.0 +18.6% 106.3 321.8 276.0 +16.6% Number of vessels (end of period) * 135 117 +18 vessels 133 135 117 +18 vessels Average utilization rate 86.6% 90.2% -3.6 pts 87.8% 88.5% 89.7% -1.2 pts Average daily rate (in US$/day) 14,152 13,728 +3.1% 14,006 14,065 13,958 +0.8%

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

Revenues for the period increased by almost 19% largely due to an increase in the fleet (including 2 MPSV vessels transferred from the Subsea division), while the higher average daily rate was offset by a reduced average utilization rate. The utilization rate was negatively impacted by an increase in the supply of ships in Asia and in the Mediterranean/Middle East/India regions as many ships were delivered from shipyards in Asia.

Marine Services: Crew boat vessels 

 Quarter9 monthsQ3 2014 Q3 2013 D 2014/
2013 Q2 2014 2014 2013 D 2014/
2013Revenues (in millions of euro) 68.8 73.4 -6.2% 69.3 209.7 222.5 -5.8% Number of vessels (end of period) 271 271 n.c. 274 271 271 n.c. Average utilization rate 74.0% 77.5% -3.5 pts 74.3% 75.0% 78.8% -3.8 pts Average daily rate (in US$/day) 5,113 5,204 -1.7% 5,197 5,161 5,128 +0.6%

The average utilization rate in the 3rd quarter decreased 3.5 points versus the same period one year ago. and was stable compared with the 2nd quarter 2014 as softer conditions in certain West African countries continued. The size of the crew boat fleet remained stable overall, as 14 new vessels have been delivered during the past 12 months as the same number of older crew boats left the fleet.

Subsea Services Quarter9 monthsQ3 2014 Q3 2013 D 2014/
2013 Q2 2014 2014 2013 D 2014/
2013Revenues (in millions of euro) 61.9 58.9 +5.2% 53.3 167.2 167.8 -0.4% Number of vessels (end of period) * 19 19 n.c. 19 19 19 n.c. Average utilization rate 81.1% 93.6% -12.5 pts 83.9% 86.0% 90.7% -4.7 pts Average daily rate (in US$/day) 50,992 41,331 +23.4% 46,868 48,057 40,545 +18.5%

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

Revenues for the quarter increased 5.2% versus the same period last year, owing to the removal of 3 smaller vessels (two transferred to Shallow water segment and one sold) and the delivery of 3 new, larger vessels. This accounts for both the increase in average daily rate and the increase in revenues. The reduced utilization rate resulted from a combination of lower level of activity and higher number of drydocks than in the 3rd quarter 2013.

Other Quarter9 monthsQ3 2014 Q3 2013 D 2014/
2013 Q2 2014 2014 2013 D 2014/
2013Revenues (in millions of euro) 6.3 6.5 -4.0% 4.6 15.6 18.1 -13.9%

Using chartered vessels has two advantages for BOURBON: it makes it possible to meet client demands and generate contracts while new vessels are being built and added to the fleet. Using chartered vessels also enables BOURBON to offer vessels that are not part of its regular line of services when needed for global calls for tenders. Volatility of "Other" revenues is largely due to the variation in the number of chartered vessels during the period.

OUTLOOK

After several years of stability, the price of oil has dropped and is currently fluctuating in the US$80-85 per barrel range (Brent). In this context, oil & gas companies have been engaged in cost reduction efforts throughout this year and that trend is expected to continue in the near term. This has meant more selective investment choices and a focus on existing well production. However, both the medium term and long term view yields a much more positive outlook. The time horizon for field development and production is often over 20 years and takes places over several business cycles. Therefore, while short term factors may influence decisions temporarily, there is still a need for companies to maintain and increase overall production. The demand for energy is still strong and with depletion rates of existing fields continuing, there is still a need for further exploration and production investments by the oil & gas companies throughout the world.

In addition, the rig count is expected to continue to increase. Only a portion of the approximately 200 rigs under construction will be replacing older rigs, which is favorable for the demand of offshore vessels (OSV). A high contractor backlog through 2016 could also have a positive impact on demand for OSVs. On average, we anticipate a stable demand for offshore support vessels.

On the supply side, the high number of large PSVs coming out of the shipyards could negatively affect the spot market. This should have only a small impact on BOURBON, taking into account the high contractualization rate of its PSVs.

BOURBON is focusing on excellence in client service execution and marketing of vessels utilizing its network with the support of its partners, with a strong commitment to cost reduction, thanks in part to the standardized fleet of 500 vessels.

MAJOR OPERATIONS AND HIGHLIGHTS In late October 2014, BOURBON successfully completed a €100 million perpetual, deeply subordinated bond issue; this issue is accounted for as equity under IFRS standards and the prospectus is available on BOURBON's web site under 'regulated information'As an update on BOURBON's sale of 51 vessels for up to US$1.5 billion to ICBCL the transfer of 45 vessels have been completed for total proceeds of US$1.4 billion, including 2 vessels that have been transferred since October 1, 2014 To date, the vessels transferred to ICBCL comprise 8 Deepwater vessels, 31 Shallow water vessels and 6 Subsea vessels The $US150 million agreement with Standard Chartered Bank for the sale of 6 vessels remains on track and the remaining 3 vessels are targeted to be transferred before the end of 2014ADDITIONAL INFORMATIONBOURBON's results will continue to be affected by the €/US$ exchange rateFINANCIAL CALENDAR 4th Quarter 2014 & full year 2014 financial information press release February 4, 2015 2014 Annual Results press release and presentation March 4, 2015  
APPENDIXQuarterly adjusted revenue breakdownIn millions of euros 20142013 Q3Q2Q1Q4Q3Q2Q1 Marine Services   283.1 272.7 270.3 270.3 267.0 268.7 258.5 Deepwater offshore  vessels 104.097.193.695.7100.6102.393.0Shallow water offshore  vessels 110.3106.3105.1100.093.090.192.8Crew boats 68.869.371.674.773.476.372.8 Subsea Services 61.9 53.3 52.0 55.4 58.9 57.3 51.6 Other   6.3 4.6 4.7 5.8 6.5 6.7 4.9 Total adjusted revenues 351.3330.6327.1 331.6332.4332.8315.1 Adjustments*   (10.5) (8.1) (7.0)   (6.0) (7.8) (4.3) (4.2) TOTAL CONSOLIDATED** 340.8322.6320.0325.6324.6328.5310.9

* Effect of consolidation of joint ventures using the equity method.
**Consolidated 2013 figures have been restated according to the implementation of the new accounting standards.

Quarterly average utilization rates for the BOURBON offshore fleetIn % 20142013   Q3Q2Q1Q4Q3Q2Q1 Marine Services   79.4 80.0 82.4   83.3 82.4 82.4 83.9 Deepwater offshore  vessels85.787.288.690.188.890.086.6Shallow water offshore  vessels86.687.891.290.290.289.189.8Crew boats74.074.376.678.477.577.780.8 Subsea Services   81.1 83.9 94.4 89.2 93.6 88.0 90.6 "Total fleet excluding Crew boats"  85.887.390.690.190.089.388.7"Total fleet" average utilization rate 79.480.282.883.582.982.684.2Quarterly average daily rates for the BOURBON offshore fleetIn US$/day 2014 2013   Q3Q2Q1 Q4Q3Q2Q1 Deepwater offshore vessels   23,887 23,219 22,839   22,241 22,683 22,092 21,392 Shallow water offshore vessels   14,152 14,006 14,199   14,013 13,728 13,850 14,315 Crew boats   5,113 5,197 5,323   5,309 5,204 5,122 5,034 Subsea Services   50,992 46,868 45,407 43,120 41,331 40,644 40,405 "Total fleet excluding Crew boats" average daily
rate 20,24719,58819,49719,32919,57319,45819,427

Quarterly number of vessels (end of period)In number of vessels* 20142013   Q3Q2Q1Q4Q3Q2Q1 Marine Services   481 481 479 466 459 452 445 Deepwater offshore  vessels 75747372717373Shallow water offshore  vessels135133130122117109105Crew boats271274276272271270267 Subsea Services   19 19 18 18 19 19 19 FLEET  TOTAL 500500497 484478471464

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

Quarterly deliveries of vesselsIn number of vessels 20142013   Q3Q2Q1Q4Q3Q2Q1 Marine Services   5 8 12 10 9 9 9 Deepwater offshore  vessels 1121011Shallow water offshore  vessels2365843Crew boats2444145 Subsea Services   0 1 2 0 0 0 1 FLEET  TOTAL 5914 109910Nine month adjusted revenue breakdownIn millions of euros9 months20142013 Marine Services 826.2 794.3 Deepwater offshore  vessels294.7295.9Shallow water offshore  vessels321.8276.0Crew boats209.7222.5 Subsea Services 167.2 167.8 Other 15.6 18.1 Total adjusted revenues 1,009.0980.3 Adjustments*   (25.6) (16.3) TOTAL CONSOLIDATED**983.4964.0

* Effect of consolidation of joint ventures using the equity method.
** Consolidated 2013 figures have been restated according to the implementation of the new accounting standards.

Nine month average utilization rates for the BOURBON offshore fleetIn % 9 months   20142013 Marine Services   80.6 83.0 Deepwater offshore  vessels 87.188.5Shallow water offshore  vessels 88.589.7Crew boats 75.078.8 Subsea Services   86.0 90.7 "Total fleet excluding Crew boats"  87.889.4"Total fleet" average utilization rate 80.883.3Nine month average daily rates for the BOURBON offshore fleetIn US$/day 9 months   20142013 Deepwater offshore vessels   23,189 22,093 Shallow water offshore vessels   14,065 13,958 Crew boats   5,161 5,128 Subsea Services   48,057 40,545 "Total fleet excluding Crew boats" average daily rate   19,72819,474Nine month deliveries of vesselsIn number of vessels 9 months   20142013 Marine Services   25 27 Deepwater Offshore  vessels 42Shallow water Offshore1115Crew boats1010 Subsea Services   3 1 FLEET TOTAL  2828Breakdown of BOURBON adjusted revenues by geographical regionIn millions of eurosThird quarter9 monthsQ3 2014 Q3 2013 Change2014 2013 Change Africa 198.5 186.8 +6.3% 576.1 564.3 +2.1% Europe & Mediterranean/Middle East 58.9 63.3 -7.0% 165.3 171.3 -3.5% Americas 49.1 44.6 +10.1% 140.0 140.8 -0.6% Asia 44.9 37.7 +18.9% 127.6 103.9 +22.8%  
 Other key indicatorsQuarterly breakdown  2014 2013   Q3Q2Q1 Q4Q3Q2Q1 Average €/US$ exchange rate for the quarter
(in €)   1.33 1.37 1.37   1.36 1.32 1.31 1.32 €/US$ exchange rate at closing
(in €)   1.26 1.37 1.38   1.38 1.35 1.31 1.28 Average price of Brent for the quarter
(in US$/bbl)   102 110 108   109 110 102 112 Nine month breakdown  9 months   20142013 Average nine month €/US$ exchange rate (in €)   1.35 1.32 €/US$ exchange rate at closing (in €)   1.26 1.35 Average nine month price of Brent (in US$/bbl)   106 108

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 11,000 skilled employees. Through its 28 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 the 1st half of 2014, BOURBON'S revenue came to €642.6 million and the company operated a fleet of 501 vessels as of June 30, 2014. Under the "BOURBON 2015 Leadership Strategy" plan, the group has built a vast fleet of innovative, high-performance mass produced offshore vessels.

The latest action plan "Transforming for beyond", financially provides for the sale of existing vessels or those under construction totaling $2.5 billion and then chartering these bareboat vessels over a period of 10 years. The first part of the program involved a contract for 51 vessels worth $1.5 billion with ICBC Financial Leasing. Through the "Transforming for beyond" action plan, BOURBON intends to expand its strategic scope to new possibilities beyond 2015 ensuring the creation of future value growth.

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

Contacts
 BOURBON

Investor Relations, analysts, shareholders
James Fraser, CFA
+33 491 133 545
james.fraser@bourbon-online.com

Corporate Communications
Christelle Loisel
+33 491 136 732
christelle.loisel@bourbon-online.com

 Media relations agency
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