Offshore vessel owner and operator Bourbon has reported a 5.6% drop in revenues between Q1 2015 and the last quarter of 2014, and has put 23 vessels into lay-up.
Bourbon reported adjusted revenues of EUR383.6m ($421.6m) for the first quarter of 2015 down 5.6% on Q4 2014 revenues of EUR388.5m.
As the fall in the oil price starts to bite in the offshore marine sector the company said it has laid-up 23 of its vessels with clients making “unprecedented” cost reductions and cutting capital investments by between 15% and 30%, and utilisation in offshore and subsea falling 6.3% from 90.6% to 84.3% in 2015.
A 3.2% utilisation drop occurred between Q4 2014 and Q1 2015, offsetting the addition of six new deepwater OSVs between Q1 2014 and Q1 2015.
However, Bourbon’s results were said to have benefitted from an improvement in foreign exchange rates, after a sharp drop in the euro.
Bourbon ceo Christian Lefèvre described the company’s results as “resilient”.
“Bourbon has proactively responded to both the customers’ requirements for lowering their cost of operation and to the impact of reduced utilisation rates on Bourbon operating costs,” said Lefèvre. “A number of general agreements have been concluded with key customers on the basis of reciprocity: lower daily rates with better contract coverage and access to market.
“This action plan provides Bourbon with higher visibility on its fleet utilization and allows proper planning of stacking/unstacking of vessels in the different regions where it operates, when needed. Proper [cold] and temporary stacking of vessels considerably reduces cash operating costs, which in turn reduces the impact of lower activity on adjusted EBITDA/revenues margin.
“The resilience of Q1 adjusted revenues at constant rates reflects the continued demand for Bourbon’s modern, efficient, standardised vessels. While the current oil price environment continues to impact the activity of oil & gas companies’ capital spending plans, Bourbon is also continuing to focus on its own cost reductions efforts and vessel efficiency to deliver the best service possible to its clients.”
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