Bulk boost for Bourbon

FRENCH shipping Group Bourbon has reported strong growth in the first half of 2007 but a weakening dollar has had a negatvie effect on the company which reports in euros. Overall it reprots a 29.7% revenues increase, but this would have been 38.5% at constant exchange rates. Borbon's largte Offshore Division's revenues were up by 28.3% (36.0% at constant exchange rates) while Bulk Division's rose by by 42.9% (54.5% at constant exchange rates). The company's figures do not include it port towage business which is being sold off.

With revenues of euros231.4m over the first half of the year, the Offshore Division posted 28.3% growth compared to the first half of 2006 on a “highly buoyant” market. A statenme3nt says: “New vessels regularly came into service over the last twelve months including 15 new units in the last half-year (eight supply and seven crew boats) enabling Bourbon to consolidate its position by offering its clients the excellence of new generation vessels. It should, however, be noted that a proportion of revenues is still generated by chartered vessels and that operations to protect the French coastline have been incorporated in the Offshore Division in which three units already work for the French navy.” No mention is made of the Bourbon Dolphin which sank in April with the loss of eight crew members.

Regarding the big jump in earnings from its bulk fleet Bourbon says: “In the first half of 2007 the reference average freight rate (Baltic Supramax Index) rose to US$36,450 per day compared to US$18,000 per day on average in the first half of 2006.” Looking ahead the company says: “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.”