Bourbon unveils Horizon 2012 Plan - invests in IMR vessels and subsea sectorNews // February 8, 2008
Groupe Bourbon has unveiled the next phase of its planned investment in the support vessel marker, its Horizon 2012 strategic plan.
Chairman and Chief Executive Officer Jacques de Chateauvieux explained: "This new strategic plan is an extension of our 2010 horizon to 2012... By anticipating services and resources today, by expanding our offering, we will confirm our position in 2012 and beyond as a leader in modern offshore oil and gas marine services. Added to that, the continuity of our investments will also keep us on the leading edge of innovation so that we can continue to offer to the most demanding oil and gas clients more productivity and greater efficiency."
In the offshore oil and gas market, Bourbon notes, oil and gas investments are expected to be higher than initial estimates and that growth has been slowed by bottlenecks at equipment suppliers.
"As a result, the investments made in oilfields are expected to be spread out over time and generate a positive extension of the production cycle," said the company.
Facing these major changes, Bourbon has decided to update its strategic plan and enlarge it to 2012.
The new Horizon 2012 plan, covering the five years from 2008 to 2012, is characterized by:
- expected average annual revenue growth of 17 per cent, including 21 per cent for the Offshore Division,
- a large increase in the number of vessels,
- a ratio of EBITDA (Gross Operating Income) to average capital employed of 18 per cent in 2012,
- investment, in addition to the installments paid in 2007, of Euros 2 billion, 85 per cent of which will be devoted to the Offshore Division and largely financed by cash flow.
Within the Offshore Division, the Horizon 2012 plan is characterized by:
- integrating and developing a new subsea services activity,
- expected average annual revenue growth of 21 per cent a year for the Offshore Division, including 17 per cent for the Marine Services Activity and 38 per cent for the Subsea Services Activity,
- investment of Euros 1.7 billion, in addition to the installments paid in 2007, for the expansion of the fleet of offshore vessels and ROVs.
To this end, 10 GPA 696 IMR vessels were ordered at the beginning of 2008 at a cost of 450 million Euros.