BOURBON Quarterly Financial Results

Third quarter 2007 revenues for BOURBON rose 35% over the same period in 2006 to total 200.4 million euros. This growth was driven by higher revenues in all BOURBON divisions.
Over the first 9 months of this year, revenues were up 31.5% at current exchange rates (40.2% at constant exchange rates).

BOURBON Chairman and Chief Executive Officer Jacques de Chateauvieux stated: "This new increase in revenues in the third quarter reflects the excellent level of activity of our two Divisions in all our operating regions. BOURBON is benefiting both from the steady rate of new vessel deliveries and a favorable market context that should continue in the fourth quarter."


 

• QUARTERLY DATA

Breakdown of BOURBON third quarter revenues by Division

* Pro forma: excluding port towage activity, with the integration of the coastal protection and salvage business in the Offshore Division

 

• OFFSHORE DIVISION

* Pro forma: with the integration of the coastal protection and salvage business in the Offshore Division.

Over the third quarter of 2007, revenues generated by the Offshore Division rose 24.3% over the same period in 2006 (31.1% at constant exchange rates).
This growth is explained by the integration over the last 12 months of 32 new vessels in the Bourbon Offshore fleet, 8 of which were delivered in the third quarter.
Revenues recorded by vessels operating under external charters totaled 13.4 million euros for this quarter. These vessels traditionally generate lower margins than owned vessels.
Two economic factors should be noted over this quarter:
- an average exchange rate of USD 1.37 for 1 euro (compared with USD 1.27 over the same period in 2006)
- an average Brent price of USD 75 / barrel (up from USD 70 over the same period last year).

 

• Breakdown of the Offshore Division's revenues by geographical area

Africa, the geographical area in which BOURBON has historically operated, recorded strong growth (+25.7% over the 3rd quarter of 2006), primarily driven by the steady growth in operations in Angola, Nigeria and Congo.
Europe and the Med/Middle East region rose 8.2% over the same quarter in 2006.
This growth was essentially based on the emergence of the Middle East, with the commissioning of 2 new anchor handling tug supply (AHTS) vessels in this quarter.
The growth in Asia, a new operational zone for BOURBON, was driven by the commissioning of 8 new vessels over the last 12 months.

 

• BULK DIVISION

Third quarter 2007 revenues recorded by the Bulk Division totaled 66.1 million euros, an increase of more than 60% over the same period in 2006 (72.9% at constant exchange rates).
Because of its long-term contract policy, the Bulk Division did not fully benefit from the high cargo spot prices recorded this quarter.
Cargo tonnages shipped also increased to 4.47 million tons, up from 4.11 million tons over the same period in 2006.
Finally, on September 28, 2007, the Bulk Division took delivery of the Thermidor, a new 53,500 ton bulk cargo Supramax vessel, which immediately began operations under very favorable conditions.


 

• MAJOR OPERATIONS AND EVENTS

After consultation with the organizations representing the employees, the intention to sell the port towing activity was confirmed and a preliminary sale agreement was signed with Grupo Boluda on October 1, 2007.
In the third quarter of 2007, BOURBON exercised the final put for the sale of Vindémia.
Other sales of non-strategic operations were also completed for a total of 9 million euros.
During the quarter, BOURBON ordered a series of 10 Supramax vessels (deadweight of 58,000 tons) and 4 Panamax vessels (74,500 tons deadweight).
On September 10, 2007, Pleyel Investissements, controlled by Monnoyeur SAS, acquired over 5% of the capital of BOURBON and held 2,770,140 shares on that date, representing 5.02% of the capital.