Marine Log - October 2007 - (Page 43) INTERVIEW BOURBON BULKS UP aris-based Bourbon has made quite a bit of noise in the offshore market. Over the first half of 2007, Bourbon Offshore’s revenues climbed to EUR 231.4 million over the first half of the year, posting 28.3% growth compared to the first half of 2006. In the last 12 months, Bourbon added a total of 15 new vessels, including five anchor handling tug supply boats one multi-purpose vessel, two platform supply vessels, one fast supply boat and six Surfer crew boats. As of mid-2007, the company had 204 offshore vessels in its fleet with another 177 under construction. The second half of the year, it will add another five supply boats and 20 crewboats. One division that has not received as much attention is Setaf Saget, Bourbon’s growing bulk shipping arm. “We’ are investing about EUR 300 million more into the bulk division then we expected under our Horizon 2010 plan. These include four Panamax- and 10 Supramax-size vessels,” said Bourbon president and CEO Jacques de Chateauvieux told Marine Log. In the first half of 2007 the average freight rate (Baltic Supramax Index) rose www.marinelog.com P to $36,450 per day compared to $18,000 per day on average in the first half of 2006. The index rose by 35% compared to the average rate in the second half of 2006. As a result of a strong market, the Bourbon Bulk Division’s revenues rose 42.9% for the first half of 2007 to EUR 117.4 million, as compared with the same period in 2006. Tonnage transported in the first half of 2007 amounted to 8.23 million tons compared to 7.69 million tons in the first half of 2006. “We expect our customers needs will grow to as high as 35 million tons by 2010 or 2011,” said de Chateauvieux. “To accommodate that growth and still maintain the ratio of the vessels we own to those we charter we have to increase our fleet to around 16-20 vessels.” Bourbon’s current owned fleet includes six vessels, including three 49,000-dwt ships, two 55,000-dwt ships and one 53,000 dwt ship. The ships carry cement-related products, coal, iron ore and grains. for select industrial groups. Overall, Setaf Segat operates about 60 bulk carriers Last month, Bourbon was expected to Bourbon’s president and CEO Jacques de Chateauvieux has his eye on growing the company’s bulk shipping business take delivery of a new 53,500-ton bulk carrier with a second similar-sized vessel under construction for delivery in mid2009. Another 30,000-dwt cement carrier is being built for delivery in March 2008. Under an extension of its newbuilding program, Bourbon has signed contracts worth $144 million for four 74,000 dwt bulk carriers with India’s Pipavav Shipyard for delivery in 2010 and a $360-million deal with China’s Sinopacific for ten 58,000 dwt Supramax bulk carriers for delivery between 2009-2011. Earlier in the year, it struck a deal to sell a 2001-built 49,000 ton ship for $45 million. The sale will be executed end of December 2007, meaning that the company was able to realize the revenue from the vessel for the entire year. ML OCTOBER 2007 MARINE LOG 43 http://www.marinelog.com
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