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Bourbon suffers 11.4% drop in Q3 charter rates

Bourbon suffers 11.4% drop in Q3 charter rates
Bourbon reported continued falls in both charter rates and utilisation in the third quarter of 2015, as challenges grow in the offshore vessel market.

The company said charter rates in Q3 fell 11.4%, to $11,167 from $12,604, while utilisation fell 5.7% versus the same period in 2014, to 73.7%. As a result Bourbon reported a 4.9% drop in revenues to EUR344.1m ($376.2m) from EUR361.7m in Q3 2015. 

While revenues picked up in the Americas region during the period, a 27% decline was reported in Asia, and following a relatively strong second quarter given the market, Bourbon suffered an 8.3% decrease in revenues between Q2 and Q3. In a symptom of the times 30 vessels were stacked during the period, compared with 26 in Q2 2015.

The results brought average utilisation rates in the nine-month period to a 4.2% drop, to 76.6% from the 80.8% reported in the same period in 2014. Charter rates in the same period fell 5.4% to $11,632 from $12,292.

However, Bourbon has booked a 6.8% year-on-year revenue increase for the first nine months of 2015 to EUR1.1bn ($1.2bn) from EUR1.0bn in 2014.

"In today’s market environment, Bourbon remains determined in the search of operational excellence and is focusing on what it can control: safety, cost control initiatives and operational efficiency", says Christian Lefèvre, ceo of Bourbon. "The objectives in the coming quarters will be to maximize the utilization of the fleet by extending the scope of services on the full range of vessels and extend the portfolio of clients thanks to its network and strong partnerships overseas."