Title XI Funding
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Marine Log

May 10, 2007

Bourbon Offshore revenues up 33%

Paris-based Bourbon's revenues for the first quarter of 2007 totaled 200.1 million euros, up +18.1% over the same period in 2006 (+25.7 % at constant exchange rates).

With revenues of 105.4 million euros at March 31, 2007, the Offshore Division recorded growth of +33.0% (+41.8% at constant exchange rates) compared to the same period in 2006.

This substantial increase over the first quarter of 2006 was primarily generated by the growth of the fleet (particularly in the North Sea) and particularly favorable market conditions:

    renewal of contracts at much higher average daily rates;

    conditions that were still favorable, although lower than the previous quarter, in the North Sea market, in which the Bourbon Dolphin recorded 4.4 million euros in revenues.

In the first quarter of 2007, the growth in revenues continued to remain strong in Nigeria and Angola, driven by rapidly expanding oil operations.

Revenues in Asia doubled compared to the first quarter of 2006, thanks to the arrival of three new supply vessels in this high-growth region.

Compared with the final quarter of 2006, the first quarter of 2007 was impacted by many scheduled heavy maintenance shutdowns and the change in the euro/dollar parity.

Towage & Salvage Division

The Towage & Salvage Division recorded revenues of 31.1 million euros, down 4.4% compared to the first quarter of 2006, primarily as a result of:

operations negatively impacted by the strike organized by agents in the Autonomous Port of Marseilles, with 1 million euros in lost revenues for Les Abeilles Marseille Fos, or -15% for the first quarter of 2007, which should be partially offset in the second quarter of 2007;

33% decline in revenues in the Port of Le Havre, due to the arrival of a new operator.

In the first quarter of 2007, as in 2006, the Towage & Salvage Division did, however, benefit from the strong activity in African ports driven by a positive context offered by the offshore oil sector in this region.

Bulk Division

First quarter 2007 revenues generated by the Bulk Division amounted to 50.4 million euros, up +22.6% over the same period in 2006 (+33.5% at constant exchange rates).

Over this quarter, the average reference freight rate (Baltic Supramax Index) reached $31,488/day, compared with an average $16,315/day over the first quarter of 2006. This rate represents an increase of +9.8% over the average rate in the last quarter of 2006.

OUTLOOK

In line with the Bourbon Horizon 2010 investment plan, the Offshore Division will continue to take regular delivery of new vessels.

Revenues for the Towage & Salvage Division will be influenced by the commencement of operations in the Port of Tangiers Med in July 2007.

The Bulk Division should benefit throughout the year from high freight levels, similar to the situation in 2005.

Finally, Bourbon's revenues are expected to continue to be influenced by changes in the euro/dollar parity

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