French offshore vessel operator Bourbon has taken 26 supply vessels out of service amid the continuing slump in offshore oil and gas activity.
More lay-ups could follow and Bourbon will continue to “stack” vessels without any prospect of activity for three months or more, said the company.
The laid-up vessels are mostly in the shallow-water segment and many are “non-strategic”, without dynamic positioning or diesel electric propulsion, according to Bourbon.
Bourbon told IHS Maritime the vessels had been withdrawn from service gradually throughout the first half but declined to say in which regions and countries, on the grounds that the information was confidential.
In its first-half revenue announcement, the group said that for its main marine services business virtually all regions had registered significantly less activity.
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But the North Sea, the Mediterranean, the Middle East, India, and Asia had been hit hardest while the Americas and West Africa had withstood the downturn better, according to the announcement.
Further spending cuts could be imminent, according to Bourbon. After reported capital investment cuts ranging from 15% for oil majors to 30% for “independents”, some companies have already suggested they could further reduce investment in 2016, it said.
In the meantime, the group claimed to have shown “good operational resilience in a very challenging market” in the first half.
Bourbon announced adjusted first-half revenues up 13.1% year on year to a record EUR758.8 million (USD830.7 million) but acknowledged the figure had been boosted by the rise in the dollar’s value.
At constant exchange rates, its revenue would have slipped 4.9% in the second quarter and 1.7% in the first half.
This post was sourced from IHS Maritime 360: View the original article here.