Schoeller-Bleckmann Oilfield Equipment AG: Further improvement of company financials in Q1/2008 – Successful commissioning of new production facility at Ternitz site – Long-term demand for high-tech drilling technology sustained – Favourable business development expected for 2008
Ternitz, 20 May 2008. Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the ATX segment of the Vienna Stock Exchange, continued its positive business development throughout the first quarter of 2008. Group sales grew by 25 % from MEUR 70.8 in the first quarter of 2007 to MEUR 88.6 in the first quarter of 2008, EBIT rose from MEUR 15.9 to MEUR 20.2 (up 27 %). Accordingly, the EBIT margin was improved to 22.7% over the same quarter of last year (Q1/ 2007: 22.5 %). Profit before tax at the end of the first quarter of 2008 climbed to MEUR 18.9, following MEUR 15.8 (up 20 %) in the first quarter of 2007. Due to this excellent company development, profit after tax also went up to MEUR 13.3, following MEUR 11.5 in the previous year, increasing by 16 %. Consequently, earnings per share of EUR 0.83 also were up 16 % against last year’s EUR 0.72. The above sales and net income figures were achieved despite of the decline in the USD/EUR exchange rate by around 14 % over the first quarter of 2007.
„In the long run, demand for high-tech components for the oilfield service industry will remain strong. Declining production rates of existing oil fields and development of new, but increasingly difficult-to-tap oil deposits call for growing use of technologically sophisticated drilling equipment “, comments Gerald Grohmann, CEO of SBO, on business development. „With our growth we try to fully accommodate that demand.“
Capacity expansions to reduce order backlog
Bookings slightly slowed down towards the end of the first quarter, but despite of the weaker USD/EUR currency exchange rate went up as much as 11 % to MEUR 74.6 against MEUR 67.4 in the first quarter of 2007. Due to the current capacity expansions at all sites, delivery times were cut and the order backlog could be reduced for the first time in many quarters. At the end of the first quarter of 2008 bookings stood at MEUR 212 after MEUR 249 at the end of 2007 and MEUR 230 at the end of the first quarter of 2007. Despite of the continued tense situation in the skilled labour market, Schoeller-Bleckmann could hire additional employees, increasing the headcount to 1249 as at 31 March 2008, following 1222 at the end of 2007.
The strategic investment programme was strictly continued over the first quarter of 2008, as the new production facility in Ternitz/Austria was completed and commissioned as planned. In Houston/USA, development of land acquired last year was started.
Outlook – favourable business development 2008
Long-term demand for high-tech components for the oilfield service industry has remained unchanged, even if order intake at SBO has recently slowed down somewhat compared with the preceding quarters. Due to the production capacity expansion of Schoeller-Bleckmann and long-term delivery contracts for the new plant in Ternitz, long-ranging order dispositions of customers are not required any more to the extent seen in previous years. Business development may also be influenced by the USD/EUR exchange rate and global economic development. On the whole, however, business in 2008 is expected to develop favourably.
Comparison of key figures in MEUR
|
|
1-3/2008 |
1-3/2007 |
Change |
|
Sales |
88.6 |
70.8 |
25 % |
|
EBIT |
20.2 |
15.9 |
27 % |
|
EBIT margin (%) |
22.7 |
22.5 |
|
|
Profit before tax |
18.9 |
15.8 |
20 % |
|
Profit after tax |
13.3 |
11.5 |
16 % |
|
EPS in EUR * |
0.83 |
0.72 |
16 % |
|
Headcount ** |
1249 |
1119 |
12 % |
* based on average shares outstanding
** reporting date 31 March.
Schoeller-Bleckmann Oilfield Equipment AG is the global market leader in high-precision components for the oilfield service industry. The business focus is on non-magnetic drillstring components for directional drilling. SBO employs a workforce of 1249 worldwide (31 December 2007: 1222), 383 in Ternitz/Austria and 614 in North America (including Mexico).
Further inquiry note:
Gernot Bauer, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz, Hauptstraße 2
Tel: +43 2630/315 ext 250, fax ext 501
E-mail: g.bauer@sbo.co.at
Mick Stempel, Hochegger|Financials
Tel: +43 1/504 69 87 ext 85
E-Mail: m.stempel@hochegger.com
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