Presentation to shareholders sept 2015

Download Presentation to shareholders sept 2015

Post on 13-Apr-2017

1.866 views

Embed Size (px)

TRANSCRIPT

  • Presentation to shareholders September 25, 2015

    BOURBON

  • 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 arebased on assumptions that may prove to be incorrect and depend on risk factors including, but not limitedto: foreign exchange fluctuations, fluctuations in oil and natural gas prices, changes in oil companiesinvestment policies in the exploration and production sector, the growth in competing fleets, whichsaturates the market, the impossibility of predicting specific client demands, political instability in certainactivity 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 Meeting September 25, 2015

  • 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

    Meeting September 25, 20153

  • _ Oil price is above all a policy price

    BOURBON IS INFLUENCED BY OIL PRICES

    0

    20

    40

    60

    80

    100

    120

    140

    1987 1992 1996 2000 2004 2008 2012 2015

    Iraqi invasion of Kuwait

    Reducing quotas OPEC

    OPEC production cuts

    Financial crisis

    Attack 09/11

    Source : IEA

    Meeting September 25, 20154

  • Meeting September 25, 20155

    _ Oil revenues are key for balancing budgets of the largest producers

    BOURBON IS INFLUENCED BY OIL PRICES

    Source : IMF, Deutsche Bank

    Breakeven point for producing countries ($/bbl)

    Source : Rydstad Energy

    Breakeven point for production ($/bbl)

    OnshoreMiddle East

    OnshoreRow

    OffshoreShelf

    Deepwater

    OnshoreRussia

    Extra Heavy oil

    NAMShale

    Artic

    OilSands

    Bra Ultra Deepwater

  • Meeting September 25, 20156

    _ 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

    BOURBON IS INFLUENCED BY OIL PRICES

    Source: Les Echos, AIESource: Prsentation Schlumberger

    US shale oil productionIn millions of barrels/day

    IEA predictsproduction to decline 400,000 barrels/day nextyear

  • Meeting September 25, 20157

    _ The forecasts are unreliable given the very strong differences observed

    BOURBON IS INFLUENCED BY OIL PRICES

    Source: Douglas Westwood

  • Meeting September 25, 20158

    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 BOURBONs 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

  • BOURBON RESILIENCE FACTORS

    Operational resiliencefactors

    Local partnersand

    Diversified client base

    Operationalexcellence

    Relative utilization rate

    Diversificationby business

    segment

    Meeting September 25, 20159

  • Meeting September 25, 201510

    _ Safety performance

    OPERATIONAL RESILIENCE FACTORS

    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

    0,69

    0,76

    2,212,28

    1,12

    0,65 0,64 0,68 0,69

    0,48

    0,760,69

    0,6

    1,14

    0,220,07 0,05 0,1 0,1 0,07 0,1 0

    0

    0,5

    1

    1,5

    2

    2,5

    2006 2007 2008 2009 2010 2011 2012 2013 2014 30/06/2015

    0,48

    2,00

    0,64

    0,64

    0,680,69

    0,76

    0,69

    0,60

    1,000,75

    0,70 0,67

  • 11

    93%

    94.3%94.5%

    95.5%

    96.4%

    93.5%

    95%

    90%

    91%

    92%

    93%

    94%

    95%

    96%

    97%

    2011 2012 2013 2014 H1 2015

    Technical availability rate for BOURBON fleet

    Technicalavailabilityrateobjective

    OPERATIONAL RESILIENCE FACTORS

    Meeting September 25, 2015

  • Meeting September 25, 201512

    _ Diversification of types of business

    OPERATIONAL RESILIENCE FACTORS

    59%

    4%

    23%

    14%

    30%

    32%

    21%

    17%

    20142006

    Marineservices(83%)

    Marineservices(86%)

    Deep water vessels Shallow water vessels Crewboarts IMR

  • Meeting September 25, 201513

    OPERATIONAL RESILIENCE FACTORS_ Relative supply vessel utilization rates/ focus on BOURBON

  • Meeting September 25, 201514

    _ BOURBON client portfolio diversification

    OPERATIONAL RESILIENCE FACTORS

    33,6%

    13,3%

    6,6%4,6%4,4%3,9%2,9%2,6%2,5%2,4%

    23,2%

    OTHERS

    ENI

    CHEVRON

    MARINE NATIONALE

    STATOIL

    PETROBRAS

    BP

    NORSK HYDRO

    SHELL

    EXXON

    TOTAL 19,0%

    8,0%

    7,0%

    6,0%6,0%4,0%4,0%3,0%2,0%2,0%

    39,0%

    OTHERS

    MARINE NATIONALE

    MAERSK

    SAIPEM

    PETROBRAS

    PERENCO

    PEMEX

    BP

    EXXON

    CHEVRON

    TOTAL

    20142006

  • JV

    Project JV

    Affiliates

    15

    _ A unique partner network

    OPERATIONAL RESILIENCE FACTORS

    Meeting September 25, 2015

  • BOURBON RESILIENCE FACTORS

    Financial resiliencefactors

    a stable familyshareholder base

    Value of $ and low interest rate

    Maturity of business model and

    free cash flow

    Amount ofnet debt

    Financial discipline

    Meeting September 25, 201516

  • Meeting September 25, 201517

    _ Maturity of business model

    FINANCIAL RESILIENCE FACTORS

    -800

    -400

    0

    400

    800

    * 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

    M

    -800

    -400

    0

    400

    800

    2007 2008 2009 2010 2011 2012 2013 2014 E 2015 E 2016

    vessel investmentscash received sale & leasebacknet investments

    Asset smart Strategy

    Net investment (vessels only)

    Free cash flow*M

    JACCAR estimate January 2015

  • Meeting September 25, 201518

    _ Net Debt

    FINANCIAL RESILIENCE FACTORS

    0

    500

    1000

    1500

    2000

    2500

    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 2016

    M

    JACCAR estimate January 2015

  • Meeting September 25, 201519

    _ Financial discipline

    FINANCIAL RESILIENCE FACTORS

    BOURBON ratios

    2006 June 2013 2014 Objective

    Net Debt / Equity 0.89 1.56 0.8 < 0.5

    Net Debt / adjustedEBITDA

    1.83 4.96 3.0 < 2

    Rent / adjustedEBITDAR

    - - 22 % 30 %

  • Meeting September 25, 201520

    _ External factors : exchange rates & interest rates

    FINANCIAL RESILIENCE FACTORS

    0

    1

    2

    3

    4

    5

    6

    1

    1,2

    1,4

    1,6

    2006 2007 2008 2009 2010 2011 2012 2013 2014 e 2015 e 2016

    EUR/US$ Euribor 3M

    JACCAR estimate, January 2015

  • BOURBON RESILIENCE FACTORS

    21 Meeting September 25, 2015

    Safety

    Utilization rate

    Balanced revenuesfrom market

    segments

    Diversified customerbase

    Net Debt/FCFgeneration

    Debt

    Orderbook/EBITDA

    External Factors -USD

    BOURBON BOURBON vs competitors

    Tidewater

    Gulfmark

    Farstad

    Source: public data, BOURBON estimates

  • Meeting September 25, 201522

    BOURBON VS THE MARKET ENVIRONMENT

    Source : Pareto, IHSPetrodata, Farstad

    Drop in OSV utilization rate Number of stacked vessels increasing

    Utilization rateSupply 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 23 54 16 18 6

    % of fleet 10% 21% 22% 36% 11%

    Source : IHSPetrodata, Bourbon, Sec filings

  • Meeting September 25, 201523

    _ One year Stock performance - BOURBON vs competitors

    BOURBONS RESILIENCE RECOGNIZED BY THE MARKET

    0

    20

    40

    60

    80

    100

    120

    sept.-14 oct.-14 nov.-14 dc.-14 janv.-15 fvr.-15 mars-15 avr.-15 mai-15 juin-15 juil.-15 aot-15 sept.-15

    Bourbon Tidewater Gulfmark Farstad

    Base 100

  • Meeting September 25, 201524

    _ The ability of a company to pay a dividend based on:

    BOURBON: OUTLOOK ?

    -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

  • Meeting September 25, 201525

    BOURBON:THE DIVIDEND POLICY HAS ALWAYS BEEN RESPECTED

    0

    10

    20

    30

    40

    50

    60

    70

    80

    1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

    + exceptionaldividend

    MAnnual amount of dividends paid

    X 5.2+ 18 % per year

    13.8

    71.6

  • Meeting September 25, 201526

    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 2016o 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

  • Meeting September 25, 201527

    _ 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?

    BOURBON : GROWTH & YIELD GO TOGETHER?

    -

    500

    1 000

    1 500

    2 000

    2 500

    3 000M Market capitalization of BOURBON

  • Meeting September 25, 201528

    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