All Stories
Subscribe to Schoeller-Bleckmann Oilfield Equipment AG

18.03.2020 – 08:00

Schoeller-Bleckmann Oilfield Equipment AG

EANS-News: Schoeller-Bleckmann Oilfield Equipment AG took advantage of momentum on international markets and posts a solid result for 2019 - ATTACHMENT

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

Annual Result

Ternitz/Vienna - 18 March 2020.

- In 2019 sound business development of SBO on international markets
- Sales rose to MEUR 445, operating result (EBIT) stood at MEUR 60
- Dividend proposal of EUR 1.20 per share following EUR 1.00 per share in the
previous year
- Share buyback program of up to 700,000 shares resolved

Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the ATX market of the
Vienna Stock Exchange, generated a sound result in 2019, despite large regional
differences. The company's broad strategic positioning proved its worth in a
highly dynamic market environment. Demand in North America showed a strong
downward trend from mid-year on, due to the high investment discipline of North
American oil and gas companies. By contrast, the international market
environment developed positively. SBO's well-developed international business
helped to compensate to a large extent for the weakness of the North American

In yearly comparison, sales increased by 6.0 % to MEUR 445.3 (2018: MEUR 420.2).
Bookings amounted to MEUR 467.2, following MEUR 481.9 in 2018. The order backlog
went up to MEUR 123.0 at the end of 2019 (31 December 2018: MEUR 97.7). Earnings
before interest, taxes, depreciation and amortization (EBITDA) came to MEUR
108.6 (2018: MEUR 120.0). Profit from operations (EBIT) arrived at MEUR 60.2
(2018: MEUR 46.9). The previous year's figure includes a non-cash, retroactive
restatement of the goodwill of a subsidiary in the amount of MEUR 23.9 as of 31
December 2018[1]. The EBITDA margin stood at 24.4 % (2018: 28.6 %) and the EBIT
margin at 13.5 % (2018: 11.2 %).

The financial result for 2019 amounted to MEUR minus 12.3 (2018: MEUR minus
14.8). Profit before tax came to MEUR 47.9 (2018: MEUR 32.0), and profit after
tax was MEUR 32.3 in business year 2019 (2018: MEUR 17.5). Earnings per share
were EUR 2.03 (2018: EUR 1.10).

"Large regional differences between North America and international markets
marked our business year and created an overall challenging environment for the
oil and gas industry," comments Gerald Grohmann, CEO of SBO. "As the
international market environment developed positively, SBO's global positioning
helped to make good use of opportunities in these markets and reduce the impact
of the weaker North American business. As a result, our business has continued
to develop soundly in 2019."

Retroactive restatement of goodwill in 2018
Based on review findings from the Austrian Financial Reporting Enforcement Panel
in December 2019, SBO made a non-cash, retroactive restatement of goodwill of a
subsidiary in the amount of MEUR 23.9 as of 31 December 2018. The non-cash
restatement of the goodwill as of 31 December 2018 had no impact on the 2019

Sound balance sheet
SBO has a sound balance sheet structure: Equity increased to MEUR 370.1 (2018:
MEUR 344.8).1 SBO's equity ratio climbed to 42.3 % at the end of 2019 (2018:
39.3 %), while net debt was reduced to MEUR 20.1 (2018: MEUR 62.5). Accordingly,
the gearing ratio also fell, from 18.1 % to 5.4 % at year-end 2019. Cash and
cash equivalents amounted to MEUR 265.2 (2018: MEUR 241.5). Cashflow from
operating activities almost tripled, arriving at MEUR 98.1 at year-end (2018:
MEUR 33.4). Free cashflow increased from MEUR minus 0.3 in 2018 to MEUR 63.8 in
2019, despite payments for the acquisition of minority interests of MEUR 30.1.
Capital expenditure for property, plant and equipment and intangible assets
(CAPEX) was MEUR 31.5 (2018: MEUR 35.9). On 31 December 2019, purchase
commitments for property, plant and equipment amounted to MEUR 5.0 (2018: MEUR

The Executive Board will propose to the 2020 Annual General Meeting to increase
the dividend for the 2019 financial year to EUR 1.20 per share (2018: EUR 1.00).

Share buyback program resolved
The Executive Management Board of SBO resolved to make use of the authorization
granted by the 2018 Annual General Meeting to buy back treasury shares. The
share buyback is to take place in the period from 23 March 2020 to 24 October
2020 (expected). Under the program, it is planned to buy back up to 700,000
treasury shares, that is 4.375 % of the share capital at most, via the Vienna
Stock Exchange at a minimum value of EUR 1 and a maximum value of EUR 35 per
share. According to the resolution, the share buyback is to be used for employee
programs or as a transaction currency.

Challenging environment in 2020
SBO got off to a good start in 2020, with sales and bookings developing in line
with expectations. Starting in February, two events have put the capital markets
under massive pressure: First, the development around the coronavirus set in and
created direct effects on the global economy. This also had an immediate impact
on oil prices. At present, it is difficult to predict how quickly the situation
will calm down. On the weekend of 7 March 2020, there was a surprising
escalation in the production conflict between Saudi Arabia and Russia as OPEC+
partner. Saudi Arabia stepped up production and flooded the oil market at
discounted prices. This measure was taken very deliberately in an already
weakened demand environment as a result of the corona epidemic. The next OPEC
meeting is scheduled for 9 June 2020.

"As usual, we will make every effort to deal with the market circumstances and
uncertainties in the best possible way. North America will remain weak due to
the low oil price. On the international markets, there is hope that the oil and
gas companies' spending for exploration and production will be adjusted only
moderately. We are highly vigilant and are preparing for a challenging year
2020", concludes CEO Gerald Grohmann.

[1] The figures for 2018 have been restated retrospectively (see Notes in the
2019 Consolidated Financial Statements).

Comparison of SBO's key performance indicators

|                  |                   |               2019|              20181|
|Sales             |               MEUR|              445.3|              420.2|
|Earnings before   |                   |                   |                   |
|interest, taxes,  |                   |                   |                   |
|depreciation and  |               MEUR|              108.6|              120.0|
|amortization      |                   |                   |                   |
|(EBITDA)          |                   |                   |                   |
|EBITDA margin     |                  %|               24.4|               28.6|
|Earnings before   |                   |                   |                   |
|interest and taxes|               MEUR|               60.2|               46.9|
|(EBIT)            |                   |                   |                   |
|EBIT margin       |                  %|               13.5|               11.2|
|Profit before tax |               MEUR|               47.9|               32.0|
|Profit after tax  |               MEUR|               32.3|               17.5|
|Earnings per share|                EUR|               2.03|               1.10|
|Cash-flow from    |                   |                   |                   |
|operating         |               MEUR|               98.1|               33.4|
|activities        |                   |                   |                   |
|Liquid funds      |               MEUR|              265.2|              241.5|
|Headcount         |                   |              1,535|              1,646|

SBO is a globally leading supplier of products and solutions used by the oil and
gas industry for directional drilling and well completion applications. SBO is
the global market leader in the manufacture of high-precision components made of
non-magnetic high-alloy stainless steel. The company produces the components
specifically according to the requirements of customers in the oilfield service
industry. As of 31 December 2019, SBO employed a workforce of 1,535 worldwide
(31 December 2018: 1,646), thereof 393 in Ternitz / Austria and 788 in North

[1] The figures for 2018 have been restated retrospectively (see Notes in the
2019 Consolidated Financial Statements).

Further inquiry note:
Andreas Böcskör, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz, Hauptstraße 2
Phone: +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