High Daily Rates Boost Bourbon Q3 Revenue

Bourbon announced its financial results for the third quarter of 2014, in which its saw revenues increase by 5.7% year on year as fleet growth and higher average daily rates were partially offset by lower utilization rates.

Bourbon said average daily rates increased in almost all segments and regions, owing in part to newer, larger vessels having higher day rates and also improved rates on some contract renewals and extensions.

Utilization rates had mixed results across regions, meanwhile, with Asia and West Africa being adversely affected by increased supply of vessels and reduced activity, respectively.

Additionally, cost reduction programs by oil companies had an overall impact on all segments.

“In the short term, we are entering a period in which the market will be more complex, taking into account cost reductions by clients and the decrease in the price of oil per barrel,” said Christian Lefèvre, Chief Executive Officer of BOURBON. “In this context, BOURBON remains focused on excellence in client service execution and on continued cost control. However, structurally the supply and demand for oil & gas will require recovery in the level of investment in the future.”