Bourbon calls bottom of the market in subsea and crewboat segmentsNews // August 3, 2016
Bourbon says it believes the bottom of the market has been reached in some segments of the offshore vessel industry.
Announcing its second quarter and first half 2016 revenues, the company said the impact of the oil market cycle reaching its bottom was evident in its first half 2016 adjusted revenues of €599.2 million, a 21.0 per cent decline year-on-year and 11.7 per cent reduction compared to the second half of half 2015.
Bourbon said its performance during 2016 "is and will reflect the full impact of the down cycle, as illustrated by a quarter-on-quarter reduction adjusted revenues."
However, the company said the bottom of the market in the subsea segment was reached in the first quarter of 2016, and it is anticipated that the improvement in utilization rates in the second quarter will continue in quarters to come.
The company said the bottom of the market for the crewboat segment was in the second quarter of 2016.
In what it characterises as its deep and shallow water segments, Bourbon said it anticipates that the bottom of the market will be in the third quarter of 2016, due to the late cyclical nature of this business.
“More than ever, Bourbon is focusing on what it can control: safety, reliability, cost control and improved efficiency to the customers benefit," said Jacques de Chateauvieux, Chairman and Chief Executive Officer of Bourbon, noting that the company "is ready to benefit from the market recovery when it materializes."