Bourbon maximises utilisation but places 23 vessels in layupCompany News // April 30, 2015
Christian Lefèvre, Chief Executive Officer of Bourbon, says market conditions "remain difficult" but says that the company has proactively responded to customers’ requirements to reduce costs and to the impact of reduced utilization.
Mr Lefèvre said what he called "a number of general agreements" have been concluded with key customers on the basis of what he called "reciprocity: lower daily rates with better contract coverage and access to market."
"This action plan provides Bourbon with greater visibility of fleet utilization and allows proper planning of stacking/unstacking (layup) of vessels in the different regions where it operates, when needed," he said.
"Temporary stacking of vessels considerably reduces cash operating costs, which in turn reduces the impact of lower activity on adjusted EBITDAR/revenue margins.
Mr Lefèvre said there was also a quick and sharp drop of the Euro and other currencies against the US dollar and this favorable foreign exchange rate environment positively impacts Bourbon's adjusted revenues, which will translate into additional adjusted EBITDAR generation in its Euro denominated accounts.
Overall Bourbon has 23 vessels in layup.