BOURBON Presentation Cheuvreux Oil Gas 3 Decembre 2009 VA

7/30/2019 BOURBON Presentation Cheuvreux Oil Gas 3 Decembre 2009 VA

1/30

Oil & gas conferenceDecember 3, 2009

1

December 3rd, 2009

Jacques de ChateauvieuxBOURBON CEO

Bridge over troubled waters


2/30


Oil offshore

High demand cycle

2005-2008

Increase oil demand

End consumer

Depletion rate

Simultaneous oil

companies demand

upturn

World economy recession

Oil prices uncertainty 2009-2010

BOURBON

unique fleet

profile

Reduces

customer costs BOURBON

unique position

2


3/30

0

20

40

60

80

100

120

140

Source : EIA Source : Tidewater presentation

Oil offshore high demand cycle

Worldwide offshore rig count & utilization rate

Quarterly average 2005-2008

2005

Oil price

2005-2008

2006 2007 2008

Tidewater

2005-2008

Source : ODS Petrodate

$/d

3

Four years of offshore booming market


4/30

0

20

40

60

80

100

120

140

Oil offshore high demand cycle

4

Worldwide offshore rig count & utilization rate

Quarterly average 2005-2009Tidewater

2006-2009

Source : EIA Source : Tidewater presentationSource : ODS Petrodate

$/d

Oil price

2005-2009

2005 2006 2007 2008 2009

Impact of uncertainty on OSV market


5/30

Economy recession and oil price uncertainty

Following financial crisis, world economies entered into asignificant recession

Oil price upturn seen as unstable and unpredictable by oilcompanies and end users

Financing restrictions impacted spending for independent andNational Oil companies whereas International companies tookadvantage of prevailing market conditions to push suppliersprice down

OSV market took delivery of the new building programdecided in 2007 and 2008, creating overcapacity especially inthe bigger vessel segments

5


6/30

Oil and gas demand set to grow

Oil and Gas demand set to grow, due to:

Increasing final consumption, especially in emerging markets (China, India,) Production decline of existing fields

6

Source : Chevron presentation Nov 2009

Source : IEA-OECD nov 2009

Source : Douglas-Westwood presentationnov 2009


7/30

The bulk of production increase still comingfrom offshore fields

7

Source : Energyfiles, Douglas-Westwood presentation -2009

33%

67%

Offshore oil part of global output

35%

65%

offshore onshore

By 2020

Source : Energyfiles, Douglas-Westwood presentation -2009

26%

74%

1990

2009

Global oil production 1950-2025


8/30

Offshore oil production

Shallow water offshore fields still account for the largest share

of production and spending but with little growth Deep water production is the growing segment, with total

spending representing 50% of shallow water in 2012

8

6%

94%

15%

85%

2005 2015

Shallow water vs deepwater production

Source: The World Offshore Oil and Gas Production and Spend Forecast 2009 -2013


9/30


Growing deepwater market benefits largely from exploration

and development capex However, deepwater growing production generates fast

growing business, especially in subsea operations

9

Deepwater production

Source: The World Offshore Oil and Gas Production and Spend Forecast 2009 -2013


10/30

0

20

40

60

80

100

120140

160

180

200

99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

Development Capex Production Capex

10

Source : Infield System, DVB Research

$ Bn

Development Capex vs Production capex

1999-2014


Worlwide E&P Capex

$ Bn

Oil prices cycles drive oil company expenditures in Exploration and

Development, and to a lesser extent in fields in Production

From a supplier point of view, the impact of cycles in capex from oilcompanies is amplified because of lag time in capacity adjustmentsto sudden surge in demand

Source: OECD/IEA, IFP 09

(e)2010


11/30

11

BOURBON unique fleet profile

1

Growth in deepwater

offshore

Exploration/

Development

Stage in

life cycle

Stage inlife cycle

Production/

Maintenance

Complexityof activity

Complexityof activity

HighLow

AHTS and PSVAHTS and PSV

2002 2007 2012

Supply

Deep 27 49 73

As of 2000

FIRST STEP: growing market share in deepwatersegment

2000-2007


12/30

12

2002 2007 2012

Supply

Deep 27 49 73

Supply

Shallow 28 21 100

Inspection /

Maintenance /

Rparation

1

Growth in deepwater

offshoreExploration/

Development

Stage in

life cycle

Stage in

life cycle

Production/Maintenance

Complexity

of activity

Complexity

of activityHighLow


2

INNOVATIVEINNOVATIVE

COST EFFICIENTCOST EFFICIENT

Fleet replacement incontinental offshore


As of 2007

SECOND STEP: growing by substitution in shallowwater market

2008-2012


13/30

13

2002 2007 2012

Supply

Deep 27 49 73

Supply

Shallow 28 21 100

IMR 0 11 27 Inspection /

Maintenance /

Rparation

1

Growth in deepwater

offshoreExploration/

Development

Stage in

life cycle

Stage in

life cycle

Production/Maintenance

Complexity

of activity

Complexity

of activityHighLow


32

INNOVATIVEINNOVATIVE

COST EFFICIENTCOST EFFICIENT

Fleet replacement incontinental offshore Subsea Activity

IMR VESSELSIMR VESSELS

ROV OPERATORROV OPERATOR

MANAGEMENTMANAGEMENT


THIRD STEP: growth in deep offshore productionthrough Subsea activity

2008-2012


14/30

14

0

50

100

150

200

250

300

2002 2007 Horizon 2012

Number of vessels


Crew boats: a safe and economical alternative to helicopters

Already delivered To be delivered


15/30


1515

As of June 30, 2009 Vessels in

operation

Average

age

Vessels

on order TOTAL

MARINE SERVICES

Deepwater supply vessels 59 5,9 14 73

Continental supply vessels 42 5,9 54 96

Salvage tugs 5 19,3 - 5

Total Supply vessels 106 6,0 68 174

Crew boats 206 5,9 46 252

Total Marine Services 312 5,9 114 426

SUBSEA SERVICES

IMR vessels 14 3,3 13 27

ROV 10 3,4 2 12

TOTAL OFFSHORE VESSELS

ROV

326

10

5,8

3,4

127

2

453

12


16/30

Vessel design

Propulsion mode

ManoeuvrabilityOthers

BOURBON

Innovative and cost efficient vessels to reduceoverall costs to customers

Competitive cost of investmentOrdered in series

Competitive shipyards (China,)

Competitive crews and maintenancecosts

Competitive financing

BOURBON invests to reduce customers costs

16


17/30

Direct savings for logistic costs Diesel electric Reduced fuel consumption

Engine room on deck Increased cargo capacity

DPII in series Time saving for operations

Big series Higher availability

Competitive day rates Scale effect on investment costs

Competitive shipyards (China)

Competitive trained crews

Maintenance optimisation

Standardisation

Safest Operations

76 Bourbon Liberty 100 & 200 28 already in operation


Bourbon Liberty series

17


18/30

Crew boats: a safe and economical alternative to helicopters

For long distance port to field personnel transport and light equipment transport

For inter-field passenger shuttle

Application in West Africa, Middle East, Far East, Trinidad, Brazil.......

VS

50% cost saving on crew change duties

18Source : Estin & Co

CREW BOATS

- 206 under operation- 46 under construction



19/30

2009

TRIR KPI target = 2

Tolerable rate

BOURBON unique position

19

Strong safety performances

As of September 30, 2009


20/30

50


Newbuilding strategy focused on substitution market

20

Data at 09/30/2009 source: ODS Petrodata, BOURBON

Deep water

Shallow water

221 on

order

Existing fleet average age

= 18 years

Existing fleet average age

= 8 years

10

1 012vessels

323 on

order

Deep water

1 529vessels

Of which

778 more

than 25

years old

BOURBON order


21/30


BOURBON strategy in new built vessels provides a positive

answer to the market situation today and positions thecompany in an unrivalled position for the future upturn indemand

21

0

50

100

150

200

250

300

350

400

450

500

2005 30 June 2009 ForecastedHorizon 2012

crew boats Deep osv Shallow osv

Number of vessels


22/30


Utilization rate reflects fleet age, technology profile and

exposition to spot markets .

22Source: Companies FinancialResults Q1-Q3, 2009

93

70

81

72

92

84

7175

71

90

72 72

6768

88

0

10

20

30

40

50

60

70

80

90

100

Competitor 1 Competitor 2 Competitor 3 Competitor 4 BOURBON*

Q1 2009

Q2 2009

Q3 2009

*(OSV incl. IMR, exl. Crewboats)

8 years 19 years 6 years16 yearsFleet average age 7 years


23/30


In a business environment where availability of qualified

human resources remains an issue

23


24/30


Attractive offshore fleet

serviced by international crews

Standardization of fleet allows

for innovative training

24

31%

8%

7%15%

22%

7%

10%

Africa Brazil

Mexico Asia

France Norway

Europe/Others

DP Centre

PSV & AHTS simulator

Crewboat simulator ROV simulator

5 900 people dedicated to

Offshore oil services


25/30


A new building strategy of innovative and cost efficient

vessels being delivered on time and ready for market upturn

25

Example: Bourbon Liberty series (as of June 30th, 2009)

0

5

10

15

20

25

30

Already delivered S2 2009 2010 2011

PSV AHTS

Number of vessels


26/30


EBITDA generation well protected by:

Contract coverage: 70% of supply vessels fleet as of September30th 2009, but declining

Foreign exchange hedging protecting Offshore EBITDA (1.27$/for 2009)

Favorable impact of low level of interest rate

Positive contribution of Bulk division to BOURBON financialperformances

New building program properly financed with 400 millioneuros undrawn loans as of September 30th, 2009

26

BOURBON


27/30

BOURBONBridge over troubled waters

Market is expected to upturn in 2010, as oil demand follows improved

economic situation and faces decline in production of existing fields

BOURBON fleet profile made of innovative and cost efficient vessels: Reduces cost of logistics for customers

Secures higher utilization rates

Attracts skilled people

BOURBON is well positionned to benefit from expected marketgrowth: With high quality existing fleet and timely delivered new building program

Providing the full range of vessels to demanding customers worldwide

With high level of safety and standards of operation

BOURBON has secured appropriate financing and maintains itsobjectives at Horizon 2012

27


28/30


BOURBON: resilient in a poor market, best fitted for the upturn

28


29/30

29

Th is documen t may cont ai n non -h is to ric al in fo rmat io n wh ich

cons t itu tes prov is iona l es t imated f inanc ia l data concern ing the

f inanc ial pos it ion , resu l ts and s t ra tegy o f BOURBON. These

pro ject ion s are based on assumptio ns that may pro ve to be inc orrec t

and depend on r isk factors that inc lude, witho ut being l imi ted to:

foreign exchange f luc tuat ions , f luc tuat ions in o i l and natural gaspric es, changes in the investm ent policies of the oil com panies in the

explorat ion and produ ct ion sector , the growth in comp et ing f leets,

which saturate the market , the impossib i l i ty of predict ing speci f ic

c l ien t demands , po l i ti cal ins tab i l it y in certain opera ting zones,

ecolo gic al co nsid erat ions and general econom ic cond it ion s.

BOURBON assumes no respon sib i l i ty for updatin g pro visio nal data on

the bas is of new inf ormation in ligh t of futu re even ts or for any other

reason.

Notice


30/30

30

Documents

BOURBON Presentation Cheuvreux Oil Gas 3 Decembre 2009 VA