Bourbon expects increased investments through 2012

Bourbon introduced its Horizon 2012 strategic plan today.

Offshore staff

PARIS -- Bourbon introduced its Horizon 2012 strategic plan today.

"This new strategic plan is an extension of our 2010 horizon to 2012," said chairman and CEO of Bourbon Jacques de Chateauvieux in a conference call today. "It again illustrates the ongoing improving approach adopted by Bourbon which, based on continued analysis of changing demand, positions itself as a leader in trends."

The plan continues and prolongs its original vision of the market made in the Horizon 2010 plan, announced in 2005.

In the offshore oil and gas market, Bourbon expects oil and gas investments to be higher than initial estimates. The company says that growth has been slowed by bottlenecks at equipment suppliers, which will result in the investments made in oil fields to be spread out over time and generate a positive extension of the production cycle.

The new Horizon 2012 plan, covering the five years from 2008 to 2012, is characterized by expected average annual revenue growth of 17%, including 21% for the Offshore Division; a large increase in the number of vessels; a ratio of EBITDA (gross operating income) to average capital employed of 18% in 2012; and investment, in addition to the installments paid in 2007, of €2 billion, 85% of which will be devoted to the Offshore Division and largely financed by cash flow.

02/06/2008

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