Slow Rebound for Offshore Services - Bourbon
French oil services company Bourbon said on Thursday that any rebound in oil and gas prices will take a while to reach companies in the offshore marine sector because of deep cuts in investments during the prolonged oil downturn.
Bourbon, whose fleet of about 513 vessels provides offshore services for oil and gas companies, said its net loss in the first half widened to 104.3 million euros ($117 million) compared with a net loss of 19.2 million in the same period a year ago.
Adjusted revenues fell 21 percent to 599.2 million compared with the first half of 2015, the company said.
"After the drastic reduction of the level of investments of oil and gas companies over the past couple years, oil producers are now thinking of the future, particularly to maintain their level of production in the medium term," the company said.
"However, the inevitable rebound in activity will take some time to reach offshore marine services," it said in a statement, adding that deepwater and shallow water segments of the industry will continue to be affected by overcapacity of vessels.
Bourbon said a rebalanced demand and supply outlook for the oil market in 2017 will have a positive effect on the company.
"Bourbon is reinforcing its resistance capacity in the bottom of the cycle thanks to the action plan "Stronger for longer" that encompasses operational excellence, cost optimization, cash preservation and an appropriate debt structure," says Jacques de Chateauvieux, Chairman and Chief Executive Officer.
"However, we are convinced that the model of tomorrow will not return to that of pre-crisis, and we are already preparing new responses to changes seen in the clients’ expectations."
The company's shares were up 2.83 percent at 10.9 euros by 0836 GMT, outperforming the European oil and gas sector index which was up 0.18 percent.