BOURBON: Financial information Q3 and 9 months 2016

Paris, November 3, 2016

BOURBON Financial information Q3 and 9 months 2016

Adjusted revenues for the first 9 months amounted to €858.2 million, down 22.2%;

3^rd quarter adjusted revenues were down 9% compared with previous quarter

As anticipated, the offshore oil and gas marine services market is hitting a low point in the second half of 2016.

• The decrease of 4.5 points in fleet utilization rates compared with the previous quarter, to 59.7%, was primarily due to the slowdown in activity in the Shallow and Deepwater offshore segments.
   
• The number of stacked vessels at end-September, excluding Crew boats, was 85 vessels.
   
• Prices remained stable compared with the previous quarter, but have decreased by 15% year-on-year.
   
• The current quarter is expected to see comparable performances, with a slight improvement in the Subsea and Crew boat segments, and activity remaining challenging in Shallow and Deepwater offshore.

"The expectations of a potential rebalancing of oil supply and demand in 2017 on account of the sharp drop in investment by oil companies, as well as the search for agreements between producer countries, may mark the start of a recovery in activity", declared Jacques de Chateauvieux, Chairman and Chief Executive Officer of BOURBON Corporation.

"In this perspective, BOURBON is focusing on operational excellence and cost control, with a long-term vision where the benefits of the digital revolution could prove decisive."

(*) FTE: Full Time Equivalent.
(**) Vessels operated by BOURBON (including vessels owned or on bareboat charter).

(***) Effect of consolidation of jointly controlled companies using the equity method.

 (a) Adjusted data:
The adjusted financial information is presented by Activity and by Segment based on the internal reporting system and shows internal segment information used by the principal operating decision maker to manage and measure the performance of BOURBON (IFRS 8). As of January 1, 2015, the internal reporting (and thus the adjusted financial information) records the performance of operational joint ventures on which the group has joint control using the full integration method. Adjusted comparative figures are restated accordingly.

MARINE SERVICES

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Adjusted revenues continue to suffer from the decrease in demand in both Deepwater and Shallow water offshore. This is amplified by vessel overcapacity in these two segments. In contrast, the Crew boats segment is proving robust.

Marine Services: Deepwater offshore vessels

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Adjusted 3^rd quarter revenues in the Deepwater offshore segment resisted from one quarter to the next, in particular thanks to higher utilization and daily rates in the Europe/MMI and Americas regions. West Africa area continued to suffer from a very tense market. BOURBON accordingly continued its proactive cost reduction measures, stacking up to 22 vessels in the 3^rd quarter.

Marine Services: Shallow water offshore vessels

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Third quarter revenues were hit by a market that deteriorated severely particularly in this segment       (-9.4 pts in utilization rates compared with the previous quarter) and especially in West Africa, in addition to the region's annual seasonal effect during this period. The Europe/MMI region benefited from long-term contracts, notably in Egypt and Saudi Arabia.
BOURBON continued to adapt its costs to market conditions over the quarter, stacking up to 59 vessels.

Marine Services: Crew boat vessels

Adjusted revenues in the Crew boats segment rose slightly compared with the previous quarter, with heightened demand for large Crew boats representing an economic alternative to transport by helicopter. This is the only segment to see average daily rates increase slightly.

Subsea Services

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Adjusted revenues remained down, with 6 vessels being stacked in the 3^rd quarter.
The 1-point improvement in the utilization rate compared with the previous quarter reflects BOURBON's proactive strategy of entering new Shallow water offshore markets thanks to its partners' network, in particular in East Asia, where 2 Bourbon Evolution vessels are now operating. BOURBON is continuing its strategy of diversification by extending its range of services: installation/laying, inspection & assistance, ROV, diving support, well stimulation, flotels, etc.

Other

Activities included are those that do not fit into either Marine Services or Subsea Services. Making up the majority of the total are earnings from such items as miscellaneous ship management activities, logistics as well as from the cement carrier Endeavor.

OUTLOOK

In a context marked by the upward revision of the demand for oil in 2017, inventory stagnation and an offering that is expected to contract, given the reduction in investment over the past two years, we are seeing signs of a return to growth, albeit with a time lag.

Clients are going to increase maintenance operations on installations and embark on projects to extend existing facilities.

In the first half of 2017, the impact on our Deepwater and Shallow water offshore supply vessel segments will be very limited, with drilling activity remaining at very low levels; however, this impact will in all likelihood be more visible in our Crew boat and Subsea/ maintenance support activities from early 2017.

BOURBON is therefore continuing its efforts to streamline operations reduce costs and preserve cash, with the same objective of "operational excellence".

ADDITIONAL INFORMATION

BOURBON's results will continue to be influenced by the €/US$ exchange rate.

FINANCIAL CALENDAR

APPENDIX

Quarterly adjusted revenue breakdown

* Effect of consolidation of joint ventures using the equity method.

Quarterly average utilization rates for the BOURBON offshore fleet

Quarterly average daily rates for the BOURBON offshore fleet

Quarterly number of vessels (end of period)

* Vessels operated by BOURBON (including vessels owned or on bareboat charter).

Quarterly deliveries of vessels

Nine months adjusted revenue breakdown

* Effect of consolidation of joint ventures using the equity method.

Nine month average utilization rates for the BOURBON offshore fleet

Nine month average daily rates for the BOURBON offshore fleet

Nine month deliveries of vessels

Breakdown of BOURBON adjusted revenues by geographical region

Other key indicators

Quarterly breakdown

Nine month breakdown

About BOURBON

Among the market leaders in marine services for offshore oil & gas, BOURBON offers the most demanding oil & gas companies a wide range of marine services, both surface and sub-surface, for offshore oil & gas fields and wind farms. These extensive services rely on a broad range of the latest-generation vessels and the expertise of almost 10,000 skilled employees. Through its 34 operating subsidiaries the group provides local services as close as possible to customers and their operations throughout the world, of the highest standards of service and safety.

BOURBON provides two operating Activities (Marine Services and Subsea Services) and also protects the French coastline for the French Navy.

In 2015, BOURBON'S revenue came to €1,329.6 million and as of September 30, 2016, the company operated a fleet of 514 vessels.

Placed by ICB (Industry Classification Benchmark) in the "Oil Services" sector, BOURBON is listed on the Euronext Paris, Compartment B.

Contacts

Relations investisseurs, analystes, actionnaires           Vilizara Lazarova
+33 410 138 607                                +33 144 824 634  
investor-relations@bourbon-online.com James.fraser@bourbon-online.comjames.fraser@bourbon-online.com               vilizara.lazarova@consultants.publicis.fr

Communication Groupe
Christelle Loisel
+33 491 136 732
christelle.loisel@bourbon-online.com