Revenues continued to decline for offshore vessels owner Bourbon in Q1 this year down 7.7% on the previous quarter as improved oil prices failed to boost activity.
Bourbon reported Q1 2017 revenues of EUR225.5m ($245.9m), compared to EUR244.4m in Q4 2016 and down 28.3% year-on-year against EUR314.5m in the first quarter of 2016.
“Despite oil prices remaining above $50 a barrel during the 1st quarter of 2017, activity is yet to recover in the shallow water offshore and deepwater offshore sectors. However, the upturn witnessed in late 2016 in specialised Subsea and personnel transport operations looks set to continue in 2017,” said Jacques de Chateauvieux, chairman and ceo of Bourbon.
Particularly hard hit was the shallow water segment where utilisation for Bourbon’s 133 vessels was 35.6% in the first quarter of the year. Revenues plunged 60.8% from EUR94.6m in Q1 2016 to EUR37.1m in Q1 2017. The number of vessels stacked by Bourbon in the segment peaked at 76 in the first quarter.
“Shallow water activity has mainly been impacted by monsoon in Asia and by the weak drilling and maintenance activity,” the company said.
The picture was relatively better for the deepwater sector with revenues of EUR68.8m in Q1 2017 down from EUR72.8m in the same period a year earlier. Average utilisation in the first quarter for the company’s 89 vessels in the segment was 61%. The company stacked 26 vessels in the quarter for the deepwater sector.
The crew boat segment held up best with revenues of EUR58.9m in Q1 2017 compared EUR60m in the same period a year earlier. Average utilisation for Bourbon’s 269 crew boats was 61.4% in the first three months of 2017.
Looking ahead Bourbon said: “If oil prices were to stabilize at between $50 and $60 a barrel, this could trigger renewed investment due to the strong drop in costs and the continued reduction in oil companies’ breakeven.”
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