Bourbon's Jacques de Chateauvieux on Offshore
Fundamentals Stay Strong
The plan, on its face, was simple. At the turn of revenue) at the end of 2002, to 233 vessels, 4,300 the century Bourbon embarked on the path to employees and 10 clients (comprising 62% of become a dominate player in the global offthe company's revenue) at the end of 2007. shore supply vessel sector, building technoThe secret to the success is actually not a logically sophisticated vessels for a good price secret at all, as de Chateauvieux has steered in emerging Chinese shipyards, among oththe company to invest in two ends of the ers globally. Dubbed Horizon 2012, the O&G market -- production and mainteplan was backed with a multi-billion dollar nance -- that have been less dramatically investment, a world economy that was firing effected by the economic-and-oil one-two on all cylinders and an offshore oil and gas marpunch. He summed up the reason for his ket that was steamrolling ahead, powered by oil optimism in analyzing the company's prices in the region of $150. three major customers: internationThat was yesterday. al oil companies, national Today, the global credit crisis, oil companies and indefalling oil consumption patpendent oil companies. terns and prices have quickly "International oil comslowed the torrid pace of panies are not as affected expansion, and many compaby the credit situation, nies that were highly leverbut they are cutting costs "We see ourselves -- as the CEO for Schlumberger said aged are straining under a to deal with the drop in -- in a stronger and longer good cycle for oil. In the long mountain of debt. oil price," de term, there will be an increase in the use of energy and Bourbon, according to its oil consumption," Chateauvieux said. The ubiquitous leader, Chairman national oil companies, and CEO Jacques de he contends are facing the Chateauvieux, is feeling fine about its position -- embod- same concerns on cost control as the international oil ied by his recent lecture put on by the Association companies, but the credit crisis is a different matter. Française des Trésoriers d'Entreprises in Paris entitled Depending on the country, and what percentage of oil "Crisis... What crisis? Bourbon's situation" -- and the revenues are used to fund a country's operation, the effects company has not cut back on any vessel building pro- of a prolonged depressed oil price will be vastly different grams to date, and according to de Chateauvieux is around the world. unlikely to do so. Independent oil producers, on the other hand, are under While conditions certainly have changed from earlier much greater pressure as they are much more susceptible this year, de Chateauvieux said, and the company's mar- to hard swings down, and depend much more on strong ket value has tumbled with its per share "We see ourselves oil pricing to maintain profitable operations. -- as the CEO for Schlumberger said -- in a stronger and From this group, Bourbon receives 72% of its business longer good cycle for oil. In the long term, there will be an from the international oil companies, 17% from national increase in the use of energy and oil consumption," and oil companies, and just 11% from independents. we are positioned to be a major player in this regard. "We have built a good position from a customer perThe company's rise to power has been astonishing in the spective," said de Chateauvieux, "and our average length offshore sector, growing from 108 vessels, 1,000 employ- of contract is 25 months, giving us a strong cash flow ees and three clients (comprising 76% of the company's through 2010." -- Greg Trauthwein
32 MTR January/February 2009
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