The adjusted revenues of Bourbon Offshore dropped by 24.7% yoy in Q3 2016 to 287.75 million USD, due to decreasing utilization of the vessels, low number of new orders and downtrend in day rates. Since the beginning of the year, the revenues of the French offshore supplier dropped by 22.2% yoy to 953.10 million USD. As expected, the offshore oil and gas marine services market is hitting a low point in the second half of 2016, while the average day rates remained stable compared with the previous quarter at 9,494 EUR, but have decreased by 15% yoy. The report also shows that fleet utilization slipped from 73.7% a, year ago to 59.7% in the recent quarter.
Bourbon Offshore stacked another 14 offshore vessels in Q3 2016, including 13 shallow water offshore vessels. The offshore supplier has total 85 ships utilized, including 59 shallow water offshore vessels, 22 deepwater offshore vessels and 6 subsea vessels. The company is in serious financial problems, reporting constantly dropping revenues and high number of stacked vessels.
“The expectations of a potential rebalancing of oil supply and demand in 2017 on account of the sharp drop in investment by oil companies, as well as the search for agreements between producer countries, may mark the start of a recovery in activity”, said the CEO of Bourbon Offshore, Jacques de Chateauvieux. “In this perspective, Bourbon is focusing on operational excellence and cost control, with a long-term vision where the benefits of the digital revolution could prove decisive”, added he.
Bourbon Offshore is a French company offering shipping and supply services. The company has a fleet of 512 vessels with more than 10,00 employees, supplying maintenance of platforms, towing and anchoring rigs, assistance on oil remover oil terminals, transport of personnel to the sites, emergency equipment supplies, as well as towing services and installation, inspection, maintenance and repair operations of deep-water offshore facilities.