Bourbon has seen its loss widened in the first half of 2016 as revenue fell on lower utilization and daily rates pressured by tough market conditions.
French vessel owner and offshore services provider has recognized a €104.3 million ($117.5 million) net loss (group share) for the first six months of 2016, compared to €3.7 million loss in the prior-year comparable period.
In the first half of 2016, Bourbon saw its average utilization rate (excluding crew boats) at 68.1%, against 81.9% same time last year. Average daily rates also declined from $19,012 to $15,741.
The company generated a total of €599 million in half-year adjusted revenues. This result is approximately €160 million or 21% lower from €759 million in 1H 2015. Bourbon had €284.7 million in second-quarter adjusted revenues, down some 24% from a year-ago quarter (€375.2 million) and close to 10% sequentially.
As for the subsea segment, adjusted revenues for the second quarter fell 14% year-over-year, but around 22% higher against the Q1 2016. Subsea division generated €110.8 million in 1H 2016 compared to €138 million in the corresponding period in 2015.
“Subsea activity reached its low point in the 1st quarter 2016 and the improvement in the utilization rate in the 2nd quarter should continue for the following quarters,” Bourbon said in 1H 2016 earnings report.
Bourbon said it expects a full year 2016 adjusted revenue reduction in the order of magnitude experienced year on year during the 1st semester and a slight decrease in adjusted EBITDAR/revenues margin.
The company added that up to 46 vessels were stacked in the 1st half of this year.
Subsea World News Staff