February 13th, 2018 - BOURBONOFFSHORE.COM · 12M 2014 12M 2015 12M 2016 12M 2017 e. Hull average...

February 13th, 2018

Market context

What we have done, what we have learnt

Way forward strategy

#BOURBONINMOTION

THE EXPECTED MARKET

RECOVERY DID NOT

MATERIALIZE

4

THE WORST CRISIS EVER

BOURBON Strategy Conference, 13 February 2018

-250

-200

-150

-100

-50

0

50

100

150

Global upstream capex budget trend year-over-year

Source: Rystad Energy

1990 1995 2000 2005 2010 2015

-140

-120

-100

-80

-60

-40

-20

0

20

40

Global offshore capex trend

2013 2014 2015 2016 2017 2018 2019 2020 2021

Billion USD

2016

5

BUT… SOME POSIT IVE SIGNALS


30

40

50

60

70

Brent crude Oil in $

Steadily over 50$

50

In US$

Source: prixdubaril.com

At its highest since 2008

Barrel price Oil & gas Majors’ free cash flow

-40

-20

0

20

40

60

80

100

120

USD bn

6

OFFSHORE PRODUCTION REMAINS KEY TO MATCH DEMAND GROWTH


> 23%

$US billion N° FIDs

0

30

60

90

120

150

180

0

50

100

150

200

250

300

2010 2011 2012 2013 2014 2015 2016 2017

Estimated Capex (LHS) No. Project FIDs (RHS)

CAPEX data as specified by project operators. Where no definitive figure is given, estimates derived from assessment of comparable projects with known CAPEX Data Source: Clarksons Research Source: Morgan Stanley Research, Wood Mackenzie, Rystad Energy, and Company Data – June 2017

7

GLOBAL ACTIVITY IS TURNING POSITIVE


Worldw

ide fleet utilization %

Tota

l num

ber o

f ves

sels

79% 81% 81% 77%

60%

55%

58% 64%

70%

76%

83%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

500

1000

1500

2000

2500

3000

3500

4000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Demand (nb of vessels) Supply (nb of vessels) Utilization (BOURBON)

Utilization (Clarksons Platou Securities) Utilization (Pareto Securities Equity Research) Utilization (IHS Petrodata, Pareto Securities)

(Clarksons + BOURBON projection)

8

RECOVERY WILL BE SLOW

3,500 of which

1,200 vessels are stacked

TOTAL FLEET:

8 BOURBON Strategy Conference, 13 February 2018

30% of the worldwide OSV fleet is stacked

0

200

400

600

800

1000

1200

1400

janv

.-10

avr.-

10ju

il.-1

0oc

t.-10

janv

.-11

avr.-

11ju

il.-1

1oc

t.-11

janv

.-12

avr.-

12ju

il.-1

2oc

t.-12

janv

.-13

avr.-

13ju

il.-1

3oc

t.-13

janv

.-14

avr.-

14ju

il.-1

4oc

t.-14

janv

.-15

avr.-

15ju

il.-1

5oc

t.-15

janv

.-16

avr.-

16ju

il.-1

6oc

t.-16

janv

.-17

avr.-

17ju

il.-1

7oc

t.-17

janv

.-18

Num

ber o

f ves

sels

Source: Clarksons

9

,

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

,

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

12M 2014 12M 2015 12M 2016 12M 2017 e

Hull average cost OPEX per day ($) Average working day rate ($)

SUBSTANTIAL COST REDUCTION IS NOT ENOUGH


In US $

SHALLOW DAYRATE VS CASH OUT: BOURBON LIBERTY 200 AHTS CASE

- 20% to - 30%

- 30% to - 40%

10

SHIPOWNERS ARE F IGHTING TO SURVIVE


NORTH SEA

AMERICA US/GOM

MIDDLE EAST

ASIA WEST AFRICA

Restructuring Consolidation Bankruptcy

11

BOURBON’S CHALLENGES IN THIS CONTEXT


Vessels in operation are not profitable enough anymore

The stacked fleet remains a cash drain

Some of our vessels’ values are challenged

WHAT WE HAVE DONE,

WHAT WE HAVE LEARNT

13

DELIVERING OPERATIONAL EXCELLENCE


SAFETY RESULTS TECHNICAL AVAILABILITY RATE OF BOURBON’S FLEET IN OPERATION

0.69

0.48

0.76

0.55

0.82

0.53

2012 2013 2014 2015 2016 2017**

TRIR* LTIR* TRIR* objectives per year

0.10

32.3 million hours** worked in 2017

0.70 0.67

0.60

0.07 0.10

0.02

0.34

0.20

93% 94.3%

94.5%

95.5% 96.4%

95.5%

90%

92%

94%

96%

98%

2012 2013 2014 2015 2016 2017

Technical objective availability rate

14

CONSISTENTLY OVERPERFORMING MARKET


30

40

50

60

70

80

90

100

2010 2011 2012 2013 2014 2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4

UTI

LIZA

TIO

N R

ATE

S %

BOURBON vs Market utilization rate

OSV BOURBON UR Market UR

Focus on BOURBON 2017 UR by quarter

2017 Q1 2017 Q2 2017 Q3 2017 Q4

15

JAN 2017 FEB 2017 MAR 2017 APR 2017 MAY 2017 JUNE 2017 JULY 2017 AUG 2017 SEPT 2017 OCT 2017 NOV 2017 DEC 2017

Turnover base 100 Net Overdue base 100

IMPLEMENTING STRONG CASH MONITORING


Specific action plan:

Focus on cash collection

Monitoring at Executive committee level - Dry dock expenditure

- Reactivation cost

- 35.6%

Adjusted data / Base 100

- 12.4%

Net overdue

Net turnover


-

20.0

40.0

60.0

80.0

100.0

2014 2015 2016 2017e

Direct Costs G&A

*Adjusted data / Base 100

-

20.0

40.0

60.0

80.0

100.0

2014 2015 2016 2017e

Newbuidling Maintenance

DELIVERING COST REDUCTION STRATEGY

G&A: - 25% CAPEX: - 60% OPEX: - 34%

REDUCTION OVER THE PERIOD 2014 - 2017e

WAY FORWARD

STRATEGY:

#BOURBONINMOTION

18

2 CRITERIA FOR STRATEGIC SEGMENTATION


• Specialty vs Commodity segments

• Compliance to local content rules

• From chartering vessels only to providing integrated services too

• Focus on dominant regional market shares • Promote franchise: Asset light strategy • Game changing cost structure through technology and connected standardized fleet

MARKET ATTRACTIVENESS

OPERATIONAL COMPETITIVENESS

PREREQUISITE: BE THE FIRST MOVER

BARRIER TO ENTRY

ACCESS TO MARKET

BE INNOVATIVE

BUSINESS MODEL CHANGE


#BOURBONINMOTION WITHIN RELEVANT SEGMENTATION

Non-smart fleet Smart fleet

Mar

ket a

ttrac

tiven

ess

Operational competitiveness

French Navy

Mooring & Towing

Tanker Lifting

Traditional OSVs

Modern OSVs

MARINE & LOGISTICS

MOBILITY

Com

mod

ity

SUBSEA

Spec

ialty


#BOURBONINMOTION RESPECTIVE SEGMENTS WEIGHTS


Mar

ket a

ttrac

tiven

ess

Operational competitiveness

French Navy 7 vessels

Mooring & Towing 4 vessels

Tanker Lifting 9 vessels

Traditional OSVs 65 vessels

99M€ revenues

Modern OSVs 132 vessels

247M€ revenues

MARINE & LOGISTICS

MOBILITY 269 vessels / 216 M€ revenues

Com

mod

ity

SUBSEA 22 vessels / 220 M€ revenues

Spec

ialty

2017 adjusted and non-audited data

21

#BOURBONINMOTION: MOBILITY


• Benefit from BOURBON footprint worldwide • Local Joint ventures/partnerships: Gabon, Congo, Nigeria

ACCESS TO MARKET

• From 96% technical rate to 100% services rate • “Door to rig” solutions: price per man


• Surfer Concept • Fleet Size

BARRIER TO ENTRY

SUBSEA

French Navy


Mooring & Towing

Com

mod

ity MARINE & LOGISTICS

Mar

ket

attr

activ

enes

s

Operational competit iveness

MOBILITY

Tanker Lifting

• Digitization to develop new services around passengers • Terminal management, …

BE INNOVATIVE

Spec

ialty

22

#BOURBONINMOTION: SUBSEA


• Benefit from BOURBON footprint worldwide • Regional technical know how

• Increase share of turnkey projects • Diversify potential use of assets: windfarm, …

• Integrated services capability: engineering, project management…

• Access to the right fleet at the right place

• Light well stimulation: Operational Excellence Awards from TOTAL

Spec

ialty

ACCESS TO MARKET


BARRIER TO ENTRY

BE INNOVATIVE

MARINE & LOGISTICS

SUBSEA

French Navy


Mooring & Towing

Com

mod


Mar

ket

attr

activ

enes

s


MOBILITY

Tanker Lifting

Spec

ialty

23

#BOURBONINMOTION: MARINE & LOGISTICS


• True partnership for the best motion • Worldwide footprint: clients frame agreements

• From chartering vessel only to integrated services too

• Operational excellence • Modern and standardized fleet

• Smart shipping concept: 25% further OPEX reduction • Creation of regional hub and regional operations centers • Divest from the non-smart fleet

ACCESS TO MARKET


BARRIER TO ENTRY

BE INNOVATIVE

SUBSEA

French Navy


Mooring & Towing

Com

mod


Mar

ket

attr

activ

enes

s


MOBILITY

Tanker Lifting

Spe

cial

ty

24

ON THE WAY TO DIGITAL REVOLUTION

OPPORTUNITY TO DELIVER INNOVATIVE SOLUTIONS REDUCING TOTAL COST FOR OUR CUSTOMERS


“We would be interested to have one partner in exploration logistics to become more agile with a light footprint model”

25

#BOURBONINMOTION: THE SMART FLEET


MODERN VESSELS

132 vessels named “smart” qualifying for the smart shipping program

Connectivity: no design, technical or economical constraints

Age: 5.7 years old in average, built in series

Client needs: redundancy, maneuverability & energy savings

MODERN VESSELS

LEVERAGING TECHNOLOGY

26

A program based on a 3 level operational model: • Vessel • Local shore support • Central remote support

• Connecting the Smart Fleet to operate at safe manning: CAPEX 75M€ • Improving operational excellence • Reducing operational costs by 25%

Three years deployment plan aiming to:

Dynamic Positioning automation

Action plan structured around 4 main projects:

Onboard Processes Simplification

Maintenance Operational Support Center

01 02 03 04


SMART SHIPPING PROGRAM F R O M 1 4 TO 1 0 C R E W M E M B E R S

27

DYNAMIC POSIT IONNING AUTOMATION PROJECT

Improve operator-machine interface & bridge ergonomics to increase the safety of operations

Implement a certified communication protocol to mitigate cybersecurity risks

Monitor system with digital twin


BOURBON, Kongsberg & Bureau Veritas innovating on best and safest available technology for DP operations

Pilot on Bourbon Explorer 508 implemented since 1st December 2017 for BP. 12 vessels scheduled for conversion in 2018.

Savings on crew positions: 1 Officer per vessel

Alexandre Motte Master Bourbon Explorer 508

28

ONBOARD PROCESS SIMPLIFICATION PROJECT

Simplification & standardization with a robust methodology: lean six sigma

20 processes highly time consuming out of 56

10 specialists onboard to measure reality


ONE PRIORITY: CHANGE OF CULTURE

Analysis phase ongoing, deployment starts from 1st of April 2018

Savings on crew position: 1 junior Officer per vessel

29

MAINTENANCE PROJECTS

Strengthen governance and streamline processes

Implement condition based maintenance to optimize maintenance plan

Develop predictive maintenance


STRENGTHEN GOVERNANCE, STREAMLINE PROCESSES, OPTIMIZE MAINTENANCE PLAN

Maintenance hub pilot operational in Qatar in Q1-2018

All projects to be deployed fully or partially over 2018

Savings on crew positions: 1 Officer and 1 Able Seaman per vessel

01 02 03

30

BOURBON OPERATIONAL SUPPORT CENTER


Remote contract management

Real time monitoring & advisory

Analytics for business and operations decision making

Emergency and contingency situation management

1st step of the deployment in 2018

CONTRACT & OPERATIONS MANAGEMENT TO GUARANTEE CLIENT SATISFACTION

31

#BOURBONINMOTION: DIVEST THE NON-SMART FLEET


65 TRADITIONAL VESSELS

Non smart fleet : 41 owned vessels destined to be sold

Connectivity: design, technical or economical constraints

Age: 11.2 years old vessels

Vessels remaining stacked for a longer period

As a consequence of this sale plan, 2017 will bear an impairment loss of around 170 M€ on the non-smart vessels

Market for vessels to sale : 40% of our competitors having less than 10 vessels, 23 years old

N EW ORGANIZATION TO

SUPPORT STRATEGY


#BOURBONINMOTION: 3 STAND-ALONE COMPANIES

BOURBON CORPORATION

BOURBON MARINE & LOGISTICS

BOURBON SUBSEA

BOURBON MOBILITY

Revenues

Fleet

People

Geographies

€411M

217 vessels

4,500

Multi areas

Revenues

Fleet

People

Geographies

€220M

22 vessels

1,000

68% Africa

21% Asia

Revenues

Fleet

People

Geographies

€216M

269 vessels

2,300

90% Africa

Adjusted and non-audited figures as of 2017, December 31st


#BOURBONINMOTION: DUPLICATE ORGANIZATION: P ILOT PROJECT IN NIGERIA

SUBSEA MARINE & LOGISTICS MOBILITY

BOURBON Support: Standard, franchise, shared services

CLIENT CLIENT CLIENT

Owner / Shipmanager / Contracting



35

Marketing & Brand Strategy & Partnership

Operational Standards & Innovation

Performance Monitoring & Global Services


#BOURBONINMOTION: DEPLOY NEW ORGANIZATION

BOURBON Corporation

Q2 2 0 1 8

Q1 2 0 1 8

Q3 2 0 1 8

BOURBON MOBILITY

BOURBON SUBSEA SERVICES

BOURBON MARINE & LOGISTICS

Board of 7 members François LESLÉ, CEO

Board of 7 members Patrick BELENFANT, CEO

Board of 7 members Victor CHEVALLIER, CEO

Marketing & Sales

Operations & Development

Finance & Admin

Marketing & Sales


Finance & Admin

Marketing & Sales


Finance & Admin

BOURBON

MARINE

& LOGISTICS

Victor CHEVALLIER

37

KEY FIGURES & CUSTOMERS


4%

46%

15%

13%

22%

SUPERMAJORS

IOC

NOC

CONTRACTORS

COUNTRIES OF OPERATIONS

39

217 VESSELS BUILT IN SERIES PLAYER IN NUMBER OF VESSELS

OSV 1 ST

411 MILLION EUROS

4,500 EMPLOYEES

SHIPMANAGERS 8

Figures as of December 31st, 2017

OTHER

38

Our expertise:

• Supplying offshore installations and vessels

• Towing, anchoring, and positioning of offshore installations • Support to floating oil and gas production, storage, and unloading units

A FULL RANGE OF MARINE SUPPORT SERVICES


Our key drivers:

• Safety & Operational excellence

• Cost optimization

• $/day contracting mode

39

OSV COMPETITORS A FRAGMENTED MARKET


400+ players - Average fleet of 8 vessels

0

50

100

150

200

250

400 operators Fleet of less than 10 vessels on average,

40% aged of more than 20 years old

Top 10 players represent less than 20% of the market

Market reports & analysis, 2017

40

A GLOBAL FOOTPRINT WITH A WINNING STRATEGY OF LOCAL CONTENT


JV

JV JV

BML

BML

JV

JV

BML

JV JV

JV

JV

JV

8

40

42

32

Local partner / Joint venture Contracting company Shipmanager Nb vessels

JV

95

41

FROM CHARTERING VESSELS ONLY TO PROVIDING INTEGRATED SERVICES TOO


$/day services $/ton, m3, …

Fleet management Scheduling & optimization

Real-time decision support & analytics

Integrated logistics projects in exploration

Cargo management &

shore base services

TODAY… Vessel centered activity

TOMORROW Logistics Services Integrator

BOURBON

SUBSEA

SERVICES

Patrick BELENFANT

44 44 BOURBON Strategy Conference, 13 February 2018

WELLHEADS IN DEEPWATER 350

SERVICE PROVIDER IN WEST AFRICA

IMR 1 ST

220 MILLION EUROS

1,000 EMPLOYEES


(Inspection Maintenance and Repair)

56% 36%

6% 2%

SUPERMAJORS

IOC NOC

CONTRACTORS

TRACK RECORD

22 VESSELS

25 ROVS

SUBSEA CONNECTIONS ON LIVE PRODUCTION FIELDS

500


45

1 VESSEL X CRANE 250T / 10 VESSELS X CRANE 150T

5 VESSELS X CRANE 100T

6 VESSELS < CRANE 40T

Our expertise covers 3 main subsea areas:

• Engineering, supervision and management of subsea operations • Assets (vessels)

• ROV (Remote Operated Vehicle)

Base on $/Day rate for:

• Post 1st oil & gas intervention

• Inspection, Maintenance and Repair

• Assistance to construction contractors

SERVICING PRODUCTION CYCLE


46

GLOBAL & REGIONAL COMPETITORS



47

Bourbon Evolution 802 in operation in Nigeria

TOTAL Operational Excellence Award - Oct 2017

STRATEGICALLY POSITIONED PARTNERS & FLEET


2

12

4 4

JV Partnership Nb of vessels

JV JV

JV

JV JV

48

FROM CHARTERING VESSEL & ROV SERVICE TO LIGHT TURNKEY SUPPLIER


TODAY… Services rate

TOMORROW: Services rate & turnkey projects

ROVs Engineering Vessels Turnkey projects

BOURBON

MOBILITY

François LESLÉ

51 51 BOURBON Strategy Conference, 13 February 2018

60% 18%

12%

10%

SUPERMAJORS

IOC

NOC

CONTRACTORS

LEADER WITH 30 YEARS EXPERIENCE WORLD 1 ST 216

MILLION EUROS

2,300 EMPLOYEES


269 HIGH SPEED CREW BOATS

ARO

UN

D

TRANSPORTED EACH YEAR 3 MILLION PASSENGERS


COUNTRIES OF OPERATIONS

>10


A UNIQUE CONCEPT FOR PASSENGERS’ TRANSPORTATION

Speed Reliability & availability

Safe transfer

53

FRAGMENTED GLOBAL & REGIONAL COMPETITORS



54

A STRONG LOCAL FOOTPRINT


Brazil

Congo Gabon

Nigeria

Cameroun

Qatar

Indonesia

Shore maintenance base

Training base

Joint venture

Angola

90% of turnover in West Africa

55

TOWARDS DIVERSIFICATION & PASSENGER SERVICES ENHANCEMENT


TODAY… Chartering vessels for transportation

96% technical availability rate

Enhanced onboard services with partnerships

Strong historical asset base

Diversification through value chain enlargement

Digitalization

TOMORROW Customers’ mobility management

100% service rate

Integrated cost per seat $/day services

57

#BOURBONINMOTION: MAIN TAKE AWAY


- Ring fencing Subsea Services and Mobility as stand alone companies

- Transforming Marine & Logistics into a stand-alone entity:

• Investing in Smart shipping

• Reactivating the smart stacked fleet

• Divesting the non smart fleet

• Developing integrated logistic services

- Adapting group organization and governance

#BOURBONINMOTION:

CONCLUSION


STRATEGIC MOVES & DEDICATED ORGANIZATION,

D IGITAL POWERED

MARINE & LOGISTICS

SUBSEA SERVICES

MOBILITY

INTEGRATED

SOLUTIONS

Project Management

Partnerships

Risk management

Customer mobility experience Logistics

Engineering

Safety

60

A


ROAD TO VESSEL AUTONOMY

CONNECTED

Onboard Process Simplification DP Automation

REMOTE SERVICES

Maintenance Operations Support Center

AUTONOMOUS OPERATIONS

Autonomous Vessel

Source: Kongsberg courtesy

61

MONITOR HUMAN REVOLUTION


System

Human

Machine/AI

63

DISCLAIMER


This document may contain information other than historical information, which constitutes expectations, estimated, provisional data concerning the financial position, results, plans, other trend information and strategy of BOURBON. These projections are based on assumptions that could differ materially from those anticipated, may prove to be incorrect and/or 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. All written or oral statements attributable to BOURBON and its employees or representatives acting on the BOURBON’s behalf are expressly qualified in their entirety by the factors referred to above. BOURBON assumes no liability for updating, revising or correcting the provisional information or forward-looking statements based on new information in light of future events or any other reason, and these statements speak only to the date of today’s presentation. All data in the presentation are adjusted and non-audited

February 13th, 2018 - BOURBONOFFSHORE.COM · 12M 2014 12M 2015 12M 2016 12M 2017 e. Hull average...

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Transcript of February 13th, 2018 - BOURBONOFFSHORE.COM · 12M 2014 12M 2015 12M 2016 12M 2017 e. Hull average...