BOURBON Presentation to shareholders September 25, 2015

Transcription

1 BOURBON Presentation to shareholders September 25, 2015

2 DISCLAIMER This document may contain information other than historical information, which constitutes estimated, provisional data concerning the financial position, results and strategy of BOURBON. These projections are based on assumptions that may prove to be incorrect and depend on risk factors including, but not limited to: foreign exchange fluctuations, fluctuations in oil and natural gas prices, changes in oil companies investment policies in the exploration and production sector, the growth in competing fleets, which saturates the market, the impossibility of predicting specific client demands, political instability in certain activity zones, ecological considerations and general economic conditions. BOURBON assumes no liability for updating the provisional information based on new information in light of future events or any other reason. 2

3 BOURBON IS INFLUENCED BY OIL PRICES Oil price is above all a policy price Oil revenues are key for balancing budgets of the largest producers The decline in output from existing fields will make a recovery in investment unavoidable Shale oil production is here to stay but has little influence on the rise in prices The forecasts are unreliable given the very strong differences observed 3

4 BOURBON IS INFLUENCED BY OIL PRICES _ Oil price is above all a policy price Financial crisis Iraqi invasion of Kuwait Reducing quotas OPEC Attack 09/11 OPEC production cuts Source : IEA 4

5 BOURBON IS INFLUENCED BY OIL PRICES _ Oil revenues are key for balancing budgets of the largest producers Breakeven point for producing countries ($/bbl) Breakeven point for production ($/bbl) Artic Offshore Shelf Deepwater Onshore Row NAM Shale Onshore Middle East Oil Sands Bra Onshore Russia Ultra Deepwater Extra Heavy oil Source : IMF, Deutsche Bank Source : Rydstad Energy 5

6 BOURBON IS INFLUENCED BY OIL PRICES _ The decline in output from existing fields will make a recovery in investment unavoidable : Shale oil production is here to stay but has little influence on the rise in prices US shale oil production In millions of barrels/day IEA predicts production to decline 400,000 barrels/day next year Source: Présentation Schlumberger Source: Les Echos, AIE 6

7 BOURBON IS INFLUENCED BY OIL PRICES _ The forecasts are unreliable given the very strong differences observed Source: Douglas Westwood 7

8 BOURBON IN A BOTTOM OF CYCLE BOURBON has the greatest resistance capacity to adverse market conditions in relation to its competitors BOURBON continue to focus on what he can control: operational excellence and costs reduction The relative change of BOURBON s share price remains favorable, despite a drop of 50% in one year BOURBON maintains its objectives: a stable and growing dividend debt ratios maintained at satisfactory levels 8

9 BOURBON RESILIENCE FACTORS Local partners and Diversified client base Operational excellence Operational resilience factors Diversification by business segment Relative utilization rate 9

10 OPERATIONAL RESILIENCE FACTORS _ Safety performance 2,5 2 1,5 1 0,5 0 2,28 2,21 0,6 2,00 0,64 1,14 1,12 0,22 0,69 0,76 0,76 0,69 0,68 0,64 1,00 0,75 0,70 0,48 0,76 0,65 0,64 0,68 0,69 0,67 0,60 0,69 0,48 0,07 0,05 0,1 0,1 0,07 0, /06/2015 TRIR Objective per year TRIR: total recordable incidents per one million hours worked, based on 24h/day LTIR: total recordable accidents with work stoppage per one million hours worked, based on 24h/day 10 10

11 OPERATIONAL RESILIENCE FACTORS 97% Technical availability rate for BOURBON fleet 96% 95% 94% 93% 93.5% 93% 95% 94.3% 94.5% 95.5% 96.4% Technical availability rate objective 92% 91% 90% H

12 OPERATIONAL RESILIENCE FACTORS _ Diversification of types of business % 17% 30% 23% 4% 59% Marine services (86%) 21% 32% Marine services (83%) Deep water vessels Shallow water vessels Crewboarts IMR 12

13 OPERATIONAL RESILIENCE FACTORS _ Relative supply vessel utilization rates/ focus on BOURBON 13

14 OPERATIONAL RESILIENCE FACTORS _ BOURBON client portfolio diversification ,2% OTHERS ENI OTHERS MARINE NATIONALE 2,4% 2,5% 2,6% 2,9% 3,9% 4,4% 4,6% 6,6% 13,3% 33,6% CHEVRON MARINE NATIONALE STATOIL PETROBRAS BP NORSK HYDRO SHELL EXXON TOTAL 39,0% 2,0% 2,0% 3,0% 4,0% 4,0% 6,0% 6,0% 7,0% 8,0% 19,0% MAERSK SAIPEM PETROBRAS PERENCO PEMEX BP EXXON CHEVRON TOTAL 14

15 OPERATIONAL RESILIENCE FACTORS _ A unique partner network JV Project JV Affiliates 15

16 BOURBON RESILIENCE FACTORS Value of $ and low interest rate Maturity of business model and free cash flow Financial resilience factors «a stable family shareholder base» Financial discipline Amount of net debt 16

17 FINANCIAL RESILIENCE FACTORS _ Maturity of business model M Net investment (vessels only) Asset smart Strategy M vessel investments cash received sale & leaseback net investments E 2015 E 2016 Free cash flow* JACCAR estimate January 2015 * Free Cash flow : Cash flows linked to operating activities outflows linked to purchases of property, plant and equipment and intangible assets + inflows linked to disposals of property, plant and equipment and intangible assets 17

18 FINANCIAL RESILIENCE FACTORS _ Net Debt M JACCAR estimate January june 06 dec 06 june 07 dec 07 june 08 dec 08 june 09 dec 09 june 10 dec 10 june 11 dec 11 june 12 dec 12 june 13 dec 13 june 14 dec 14 e 2015 e

19 FINANCIAL RESILIENCE FACTORS _ Financial discipline BOURBON ratios 2006 June Objective Net Debt / Equity < 0.5 Net Debt / adjusted EBITDA < 2 Rent / adjusted EBITDAR % 30 % 19

20 FINANCIAL RESILIENCE FACTORS _ External factors : exchange rates & interest rates EUR/US$ 1,6 Euribor 3M 6 5 1, , e 2015 e JACCAR estimate, January

21 BOURBON RESILIENCE FACTORS BOURBON BOURBON vs competitors Tidewater Safety External Factors - USD Utilization rate Orderbook /EBITDA Balanced revenues from market segments Gulfmark Debt Diversified customer base Net Debt/FCF generation Farstad Source: public data, BOURBON estimates 21

22 BOURBON VS THE MARKET ENVIRONMENT Drop in OSV utilization rate Number of stacked vessels increasing Source : Pareto, IHSPetrodata, Farstad Utilization rate Supply vessels (average June 2015) BOURBON Tidewater GulfMark Hornbeck 81.9% 68.8% 65-70% 60.5% AHTS+PSV (July 2015) BOURBON Tidewater GulfMark Hornbeck Farstad # stacked vessels % of fleet 10% 21% 22% 36% 11% Source : IHSPetrodata, Bourbon, Sec filings 22

23 BOURBON S RESILIENCE RECOGNIZED BY THE MARKET _ One year Stock performance - BOURBON vs competitors Base sept.-14 oct.-14 nov.-14 déc.-14 janv.-15 févr.-15 mars-15 avr.-15 mai-15 juin-15 juil.-15 août-15 sept.-15 Bourbon Tidewater Gulfmark Farstad 23

24 BOURBON: OUTLOOK? _ The ability of a company to pay a dividend based on: - Corporate accounts. Those of BOURBON have a distributable balance of 615 million at the beginning of 2015, nearly nine years of dividends - The projected cash flow, excluding sales of vessels in future years. The generation of free cash flow shows that BOURBON has the necessary cash after taking into account its commitments (investments, loan repayments, financial expenses, taxes,...) - A good level of activity: the breakeven of BOURBON is well below the values required for the cash breakeven even at low part of cycle The objective of a stable or slightly increasing dividend is very much within reach of BOURBON 24

25 BOURBON:THE DIVIDEND POLICY HAS ALWAYS BEEN RESPECTED M Annual amount of dividends paid + exceptional dividend X % per year

26 BOURBON: OUTLOOK? BOURBON confirms its debt reduction policy and free cash flow generation due to : From a high level of EBITDA after rent payments, which reflects customer confidence (utilization rate) and cost control (proactive stacking of vessels, reduction of G&A) A strong reduction in vessel investment, an average of 450 million for the last 8 years, to: o 85 million in 2016 o 50 million in 2017 Opportunity for vessel sales, with or without long term bareboat charter, to achieve the debt objectives as soon as possible: o 0.5 debt ratio (Net debt/equity) o 2 x EBITDA 26

27 BOURBON : GROWTH & YIELD GO TOGETHER? _ BOURBON shareholders want a regular dividend growth, and when they have to sell, a price that reflects the economic value of the company: can the stock market play this role? M Market capitalization of BOURBON

28 CONCLUSION BOURBON is well equipped to get through this low cycle of offshore markets and will continue to strengthen its resilience capacity In the short term, BOURBON - confirms its dividend policy - confirms its debt reduction objectives and financial structure for the future Beyond this, BOURBON will have to choose between various possible solutions to: - Strengthen the capacity of constant and significant growth of its dividend - Seek a valuation of the company inline, as much as possible, with its long-term economic value, and a form of liquidity at that price 28