BOURBON: Annual & 4th Quarter 2016 Revenues

Paris, February 9, 2017

BOURBON Annual & 4 ^th Quarter 2016 Revenues

Adjusted revenues reached €1.1 billion in 2016, a decrease of 23.3% compared with 2015 in a strongly declining market

The decline in adjusted revenues was limited to 5.7% in the 4 ^th quarter compared with previous quarter; adjusted revenues amounted to €244.4 million

• Despite the reduction in investment by oil companies for the 2 ^nd year in a row resulting in a sharp decline in activity, BOURBON recorded revenues of more than €1 billion.
• 4 ^th quarter revenues reflect a further reduction in activity in the Deep and Shallow offshore segments, a recovery of activity in Subsea and, to a lesser extent, the anticipated recovery in Crew boats.
• To maximize the utilization rate and revenue of vessels in operation, BOURBON has maintained an active stacking policy. There were 104 vessels stacked, excluding Crew boats, as of December 31, 2016.

" The rise in oil prices and production limitation agreements are expected to have a favorable effect on oil companies' investments. However, the anticipated effect on offshore activity will be delayed in time, as new investments recovered initially in onshore operations", declared Jacques de Chateauvieux, Chairman and CEO of BOURBON Corporation .

  " In this context, BOURBON is strengthening the diversification of its service offerings and building on its network of local partners across the world. Beyond the "Stronger for longer" action plan, our teams are working on innovative solutions to meet the expectations of our customers who are changing their operations to adapt to an oil price under $60".

(*) 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 continued to be affected by the challenging market conditions and by the decrease in demand in both Deepwater and Shallow water offshore. This was amplified by the over-capacity of vessels in both of these segments, thereby pulling daily rates downwards. However, the Crew boats segment continued to prove resilient.

Marine Services: Deepwater offshore vessels

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

The market conditions in Deepwater offshore (particularly the over-capacity of vessels given an ever-diminishing demand) have continued to impact daily rates and utilization rates over the 4 ^th quarter 2016, leading to a drop in adjusted revenues. BOURBON has therefore decided to continue its proactive cost-reduction measures with up to 27 vessels stacked during the 4 ^th quarter.

Marine Services: Shallow water offshore vessels

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

Revenues for the 4 ^th quarter 2016 continued to experience the effects of a market lacking of new drilling or maintenance projects in this segment (-8.5 pts on utilization rates quarter on quarter). This affected all the regions in which BOURBON operates, and most particularly West Africa and Asia. BOURBON continued to adjust its costs to these market conditions over the quarter by stacking up to 73 vessels.

Marine Services: Crew boat vessels

Adjusted revenues for the Crew boats segment remained resilient in the 4 ^th quarter 2016 compared with the previous quarter. Demand continued to grow for large Crew boats, which represent an economical alternative to helicopter transportation. Average utilization rates, although still well below 2015 rates, finally reached a plateau and showed a slight increase quarter on quarter (+1.1%).

Subsea Services

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

The Subsea activity experienced a 6.3 points increase in its utilization rates compared with the previous quarter; this reflects customers' confidence in BOURBON's teams and in the vessels of the Bourbon Evolution 800 series, as well as in the fleet of ROVs. Revenues followed this trend despite flagging average daily rates.

BOURBON is pursuing its diversification strategy with its partners in its traditional regions of operation by expanding its range of activity: ROV construction support, diving, floatel and well stimulation.

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

2016 witnessed both a low point in oil prices, dropping down to $26 in January 2016 and a high point at the end of the year at $55. Growth in demand for oil and decisions by oil-producing countries to reduce the level of production could have a favorable impact on oil prices, thereby boosting investments.

2017 would in that case see a gradual recovery of maintenance activity on existing fields. Drilling is initially picking up onshore, with the prospect of a recovery in the offshore segment in late 2017 and 2018.

In this context, we expect to see continued progress in utilization rates in the Subsea and Crew boats segments. However, the Deepwater and Shallow water offshore segments will continue to experience the effects of the low point of the cycle in the first quarters of 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

Yearly adjusted revenue breakdown

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

Yearly average utilization rates for the BOURBON offshore fleet

Yearly average daily rates for the BOURBON offshore fleet

Yearly deliveries of vessels

Breakdown of BOURBON adjusted revenues by geographical region

Other key indicators

Quarterly breakdown

Annual 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 9,500 skilled employees. Through its 37 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 2016, BOURBON'S revenue came to €1,102.6 million and 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

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