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Marine Log

August 9, 2007

Bourbon reports soaring revenues

Paris-headquartered Bourbon reports that revenues (excluding port towing) in the first half of 2007 amounted to Euros 371.0 million, up by 29.7percent compared to the same period in 2006 (38.5percent at a like-for-like exchange rate).

In light of the planned sale of the port towing business, group revenue figures are provided exclusive of port towing operations. Coastline protection operations (Les Abeilles International) are now integrated in the Offshore Division.

In EUR millions Q1 2007 pro forma Q2 2007 H1 2007 H1 2006 pro forma Variation at current exchange rates Variation at a constant exchange rate
Bourbon 174.4 196.6 371.0 286.1 +29.7 percent +38.5 percent
Offshore 110.8 120.6 231.4 180.3 +28.3 percent +36.0 percent
Bulk 50.4 67.0 117.4 82.1 +42.9 percent +54.5 percent
Other 13.2 9.0 22.2 23.7 -6.3 percent +1.4 percent
t

Port towing operations

In EUR millions
Q1 2007 Q2 2007 H1 2007 H1 2006 Variation
25.7 24.8 50.5 55.3 -8.6 percent

Business in the first half of the year was unchanged in spite of the impact of competition at Le Havre (-32.5 percent) given overall growth in activity at the port. In contrast, operations in Marseille-Fos suffered from the strike by port operatives in March and lower oil traffic than the previous year in the second quarter.

Breakdown of Bourbon revenues at the end of June 2007 by region and Division

In EUR millions France International
End of June 2007 End of June 2006 pro forma End of June 2007 End of June 2006 pro forma
Bourbon 28.0 35.2 343.0 250.9
Offshore 15.6 15.6 215.8 164.7
Bulk 10.2 17.3 107.2 64.8
Other 2.2 2.3 20.0 21.4

OFFSHORE DIVISION

With revenues of Euros 231.4 million over the first half of the year, the Offshore Division posted 28.3 percent growth (+36 percent at a constant exchange rate) compared to the first half of 2006 on a highly buoyant market.

New vessels coming into service over the last twelve months included 15 new units in the last half-year (8 supply and 7 crew boats). However, a proportion of revenues is still generated by chartered vessels.

Operations to protect the French coastline have been incorporated in the Offshore Division ithree units already work for the French navy.

Revenues breakdown of the Offshore Division
(in EUR millions) Q2 2007 Q1 2007 pro forma Variation H1 2007 H1 2006 pro forma Variation
Offshore Division 120.6 110.8 8.9 percent 231.4 180.3 +28.3 percent
Europe & Mediterranean 23.1 26.3 -12.3 percent 49.3 39.8 +24.1 percent
Africa 82.5 71.1 16.0 percent 153.6 121.0 +26.9 percent
American continent 9.6 9.3 2.8 percent 18.9 15.9 +18.5 percent
Asia 5.5 4.1 35.2 percent 9.6 3.6 +169.3 percent

In line with its strategy, Bourbon has consolidated its presence in regions where the group has a long history of operations.

In Africa sustained growth has continued, in particular in Angola and Nigeria, where Bourbon posted growth of 33 percent and 26 percent in the first half of 2007 compared to the same period the year before.

In Europe and in the Mediterranean, revenues rose by 24 percent compared to the first half of 2006. Growth was focused primarily in the North Sea, where three supply vessels entered service (one AHTS and two PSVs) and where charter rates were also high.

The development of new facilities in line with the Horizon 2010 strategic plan is also bearing fruit.

Growth in Asia reflects the drive by Bourbon Offshore in this region.

Very recent development efforts and new facilities in Thailand and India have made this region a relay for expansion with 35.2 percent growth compared to the previous quarter.

BULK DIVISION

Revenues from the first half of 2007 posted by the Bulk Division amounted to Euros117.4 million, up by 42.9 percent compared to the same period the year before (+54.5percent at a constant exchange rate).

In the first half of 2007 the reference average freight rate (Baltic Supramax Index) rose to USD 36,450 per day compared to USD 18,000 per day on average in the first half of 2006. The index rose by 35 percent compared to the average rate in the second half of 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), i.e. an increase of 7.0 percent.

OUTLOOK

The Offshore Division should continue to benefit from a buoyant market in the second half of 2007 and make the most of 25 new vessels entering service (five supply and 20 crew boats).

Thanks to its long-term contracting policy, the Bulk Division should profit, in the second half of the year, from the high freight levels noted in the first half of 2007.

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