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23.05.2019 – 08:01

Schoeller-Bleckmann Oilfield Equipment AG

EANS-News: Schoeller-Bleckmann Oilfield Equipment AG

  Corporate news transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is responsible for the content of this announcement.

SBO exploits rising momentum in the international market:
Sales went up by almost 30 % in the first quarter of 2019,
profit after tax doubled

Quarterly Report

Ternitz, 23. May 2019 -

* Sales MEUR 121.1 (+28.6 %), EBIT MEUR 20.2 (+48.9 %), profit after tax MEUR
  7.7 (+105.5 %)
* Operating Cashflow increased from MEUR 7.8 to MEUR 36.8

Schoeller-Bleckmann Oilfield Equipment AG (SBO) reports a successful first
quarter of 2019. Recovery in the international oil market continued and had a
positive effect on SBO's earnings. The development in the North American
business was flat, albeit at a high level. Overall, SBO was able to grow sales
by almost 30 % in the first three months of the year in comparison to the first
quarter of 2018, while the operating result (EBIT) increased by around half and
profit after tax doubled.

CEO Gerald Grohmann: "The dynamic growth of the international market continued
in the first quarter of 2019. We actively exploited this development to grow
sales and earnings substantially. In North America, the temporary slowdown of
the previous quarter continued. The region looks back on years of strong growth
though. Our performance demonstrates that we are positioned excellently in this
market situation and can respond very quickly to changes in the various

Sales and earnings
Bookings received by SBO, which is listed in the leading ATX index of the Vienna
Stock Exchange, grew by 5.9 % to MEUR 128.4 (1-3/2018: MEUR 121.2) in the first
three months of 2019. Sales arrived at MEUR 121.1, up 28.6 % (1-3/2018: MEUR
94.2). The order backlog at the end of March came to MEUR 107.3 (31 December
2018: MEUR 97.7).

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose
strongly from MEUR 25.2 in the first quarter of 2018 to MEUR 32.9 in 2019. The
EBITDA margin arrived at 27.2 %, which is above the long-term average of 24.3 %.
The operating result (EBIT) went up by 48.9 % to MEUR 20.2 (1-3/2018: MEUR
13.6). SBO's profit before tax climbed significantly to MEUR 12.8, compared to
MEUR 5.5 in the first quarter of 2018 (+132.2 %). Profit after tax increased by
105.5 % to MEUR 7.7 (1-3/2018: MEUR 3.7). Earnings per share for the first
quarter of 2019 were EUR 0.48 (1-3/2018: EUR 0.23). The option to acquire the
minority interest of 32.3 % in US subsidiary Downhole Technology LLC was
exercised as of 1 April 2019. As communicated to the capital market, SBO had
already provided for the expected option price in the balance sheet.

CEO Gerald Grohmann: "We were able to benefit from the momentum of the market as
we had prepared for it at a very early stage. The positive development of our
sales and earnings is attributable to broad-based growth, particularly in the
international market. This shows once again that our business structure stands
on solid ground and aims at sustainable growth."

Key balance sheet figures and cashflow
SBO's equity went up to MEUR 385.8 (31 December 2018: MEUR 368.2). SBO's equity
ratio was 41.2 % (31 December 2018: 40.5 %) and net debt was significantly
reduced to MEUR 34.3 (31 December 2018: MEUR 62.5). Liquid funds amounted to
MEUR 270.0 (31 December 2018: MEUR 241.5). The operating cashflow clearly
developed positively and increased to MEUR 36.8 in the first quarter of 2019 (1-
3/2018: MEUR 7.8). Capital expenditure for property, plant and equipment and
intangible assets (CAPEX) rose to MEUR 10.9 (1-3/2018: MEUR 6.7).

The momentum in the international market remains high. The underinvestment seen
in the years of crisis within the oil and gas industry has created pent-up
demand that will gradually lead to the launch of new exploration and production
projects and a revival of activities in the oilfield service industry.
Assumptions are that spending for exploration and production (E&P spending) in
2019 will go up by 4 % globally, with the international market expected to
contribute a rise of 7 %.

In North America, the strong growth of recent years levelled off. The cost
discipline of the exploration and production companies is reflected also in the
expected 5 % cutback of E&P spending in 2019.

"The trend towards efficiency-enhancing products and measures is going on. The
feedback we receive from our customers is positive and our order books are well
filled. We expect that the momentum in the international market will continue,
provided the global economy develops positively going forward", says Gerald
Grohmann, CEO.

SBO is a leading supplier of tools and equipment for directional drilling and
well completion applications. The company is the global market leader in the
manufacture of high-precision components made of non-magnetic steel. The product
offering ranges from complex customized components for the oilfield service
industry to a selection of high-efficiency solutions and products for the oil
and gas industry. As of 31 March 2019, SBO employed a workforce of 1,548
worldwide (31 December 2018: 1,646), thereof 372 in Ternitz / Austria and 811 in
North America (including Mexico).

SBO's key performance indicators at a glance
|                  |                   |           1-3/2019|           1-3/2018|
|Earnings before   |                   |                   |                   |
|interest, taxes,  |                   |                   |                   |
|depreciation and  |               MEUR|               32.9|               25.2|
|amortization      |                   |                   |                   |
|Earnings before   |                   |                   |                   |
|interest and taxes|               MEUR|               20.2|               13.6|
|Cashflow from     |                   |                   |                   |
|operating         |               MEUR|               36.8|                7.8|
|Liquid funds as of|                   |                   |                   |
|31 March 2019 / 31|               MEUR|                270|              241.5|
|Headcount as of 31|                   |                   |                   |
|March 2019* / 31  |                   |              1,548|              1,646|

* The headcount decrease from restructuring measures is included.

Further inquiry note:
Andreas Böcskör, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG 
Tel: +43 2630 315 ext. 252, Fax: ext. 101

Ildiko Füredi-Kolarik
Metrum Communications GmbH
Tel: +43 1 504 69 87 ext. 351 

end of announcement                         euro adhoc

Attachments with Announcement:

issuer:       Schoeller-Bleckmann Oilfield Equipment AG
              Hauptstrasse 2
              A-2630 Ternitz
phone:        02630/315110
FAX:          02630/315101
ISIN:         AT0000946652
indexes:      WBI, ATX
stockmarkets: Wien
language:     English

Original content of: Schoeller-Bleckmann Oilfield Equipment AG, transmitted by news aktuell