Bourbon 2015 Leadership Strategy

Monday, June 28, 2010

The Bourbon 2015 Leadership Strategy consists of further investing in innovative and cost effective vessels to satisfy customers’ increasing focus on safe and efficient vessels to support their offshore activities, and to enable them to reduce their overall operation costs. By adding 80 supply vessels and 64 crewboats through a $2b investment plan in new buildings, Bourbon will be operating a fleet of 600 vessels for deepwater and shallow water logistics services by 2015.

The Bourbon 2015 Leadership Strategy will be built on the Bourbon Liberty series of vessels, to speed up the renewal of the old and obsolete existing shallow water fleet and on the proven expertise of its deepwater operations for exploration and production, including subsea activities. The target for vessel availability rate should reach 95% and running costs index should be reduced by 4% at constant rate by 2015.

Key financial objectives
Based on the existing fleet and the delivery of new vessels including those built under the new investment plan, Bourbon’s key financial and operational objectives can be summarized as follows:

2011-2015
5 years
New buildings investment in offshore vessels    2 billion US$
Average yearly growth of offshore revenues    17%
Vessel availability rate    > 95%

By 2015
EBITDA / Revenues for the Offshore activity    45%
EBITDA / Capital employed    20%
Offshore running costs index at constant rate    -4%

Following the 28% average annual growth of the Bourbon Offshore Division revenues between 2002 and 2009, the new plan provides for a 17% average annual growth from 2011 to 2015 (based on $1.30 for 1€). The combined effect of improved utilization rates, increased vessel availability rate, and reduced costs of operation should contribute to the significant increase of the gross return on revenues and capital employed ratios.

This new investment financing will benefit from:
•    $613.9m of assets disposal in 2010, mainly consisting of sales of Bourbon fleet of 16 supramaxes and of the remaining non-core assets;
•    reduced installments paid on vessels under construction, 75% of the vessel price being paid on delivery;
•    a $400 million 12-year loan provided by China Exim Bank.

The combined effect of cash flow generated by operations, of the disposal of assets in 2010 and the new payment terms policy will result in an expected gearing of less than 0.5 and a net debt to EBITDA ratio of less than two by 2015. This means Bourbon should be generating positive cash flows as from 2013. Bourbon dividend policy will be to pay out about 40% of its consolidated profit.

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

Kalmar 5th Generation Gloria Reachstackers Enter US

Kalmar, part of Cargotec, is launching its highly acclaimed range of reachstackers, called Gloria into the Americas. The eagerly awaited launch follows the successful

Foster Wheeler & MDM Engineering Merged

Foster Wheeler AG announced today that an indirect wholly owned subsidiary of the Company has completed the acquisition of MDM Engineering Group Limited (“MDM”)

Shipbuilding

De Beers Orders Specialized Ship from Kleven

Kleven signed a contract with diamond company De Beers Marine Namibia, part of De Beers Group, on the building of a highly specialized vessel for deep water mineral exploration.

FMT Options for another Towboat from Eastern

Eastern Shipbuilding Group, Inc. announce that Florida Marine Transporters, Inc. of Mandeville, La. exercised another additional 90’x32’x10’ “Canal Class” Inland

Tuco Debuts New Wind Farm Service Boat

Less than a week before the Offshore Energy 2014 Exhibition and Conference in Amsterdam the coming week, Tuco Marine disclosed the newest vessel in the ProZero series of Fast Rescue Boats,

Vessels

UASC Targets Expansion to Beat Container Market Blues

UASC expects to reach volume of 2.35 mln TEU in 2014 Global carriers still struggling with weak conditions United Arab Shipping Company (UASC) is on a major expansion drive,

Ecoships Claims 15% Ship Efficiency Gain

Ecoships introduced a customized version of the Six Sigma DMAIC approach to process and performance evaluation in order to optimize the energy-efficiency of the vessels under its management.

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1469 sec (7 req/sec)