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February 16, 2018

Bourbon to sell 41 ‘non-smart’ ships

France-based offshore vessel provider Bourbon has announced plans to sell 41 of its old supply vessels, known as the ‘non-smart fleet’, as they are not compatible with the company’s current ‘smart shipping’ project.

France-based offshore vessel provider Bourbon has announced plans to sell 41 of its old supply vessels, known as the ‘non-smart fleet’, as they are not compatible with the company’s current ‘smart shipping’ project.

The vessels form part of Bourbon ‘s Marine & Logistics branch’s fleet of 65 traditional units.

The proposed disposal is expected to generate an impairment loss of approximately €170m in the company’s 2017 financial statements.

However, it is also set to accelerate transformation and help the company realise its latest initiative, named ‘#BOURBONINMOTION’.

"As the market cycle has bottomed out, Bourbon must focus more than ever on operational excellence, fleet-utilisation rates, cost-reduction programmes and free cash-flow preservation."

The new action plan features a ‘smart shipping’ programme, which will connect Bourbon Marine & Logistics’ fleet of 132 modern supply vessels, collectively known as the ‘smart fleet’.

The programme will feature an investment of €75m over three years and is expected to help Bourbon reduce vessel operating costs in a sustainable manner.

Bourbon CEO Gaël Bodénès said: “As the market cycle has bottomed out, Bourbon must focus more than ever on operational excellence, fleet-utilisation rates, cost-reduction programmes and free cash-flow preservation.

“However, we need to go even further, because market overcapacity is driving prices down sustainably and we believe that tomorrow will look very different from yesterday.

“The crisis has highlighted the need to change our model, and this is what the #BOURBONINMOTION plan is all about.”

#BOURBONINMOTION primarily focuses on two priorities, including consolidating the company into three distinct affiliates, Bourbon Marine & Logistics, Bourbon Subsea Services and Bourbon Mobility, to provide better customer services.

The other priority is ensuring the company is able to capitalise on the ongoing digital revolution by properly connecting its vessel fleet.

Bourbon currently conducts operations in 45 countries. The company possesses a modern and standardised fleet of over 513 vessels and has a total of 37 operating affiliates.

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