Ternitz, 23 August 2007. Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the prime market of the Vienna Stock Exchange, fully benefited from the sustained boom in the oilfield service market in the first half of 2007. Group sales generated in the first half of 2007 grew by 31.2 % to MEUR 150.8 (1-6/2006: MEUR 114.9). This rise is mainly due to the production capacities commissioned in the past months under the strategic investment programme.

 

The bottomline also markedly improved. EBIT climbed 59.3 % to MEUR 35.3 in the first six months of 2007 (1-6/2006: MEUR 22.2). Profit before tax in the first half of 2007 rose by 59.1 % to a total of MEUR 33.9, following MEUR 21.3 year-on-year. Net income in the first six months of 2007 grew 59.1 % to MEUR 24.5 (1-6/2006: MEUR 15.4). The EBIT margin was improved from an already excellent 19.3 % in the first half of 2006 to 23.4 % in the first six months of 2007. At 24.2 %, the EBIT margin in the second quarter of 2007 climbed to a new quarterly record (4-6/2006: 20.5 %).

 

„Our timely initiated strategic investment programme currently worth around MEUR 150 has taken full effect. Thanks to the capacities built in the past two years we were able to perfectly profit from the market potential of the booming oilfield service industry in the first half of 2007 to develop our business optimally. Production is running at full capacity at all our sites and a substantial part of most recent bookings has already been scheduled for fiscal 2008 “, comments Gerald Grohmann, SBO’s Chief Executive Officer, on business development.

 

The order backlog worth MEUR 243.3 as at 30 June 2007 (30 June 2006: MEUR 179.1) again reached a peak, exceeding the level as at 31 December 2006. Bookings, as expected, were slightly lower in the first quarter of 2007, but significantly improved to MEUR 95.0 in the second quarter of 2007 (4-6/2006: MEUR 83.6). Accumulated bookings in the first half of 2007 totalled MEUR 162.4 (1-6/2006: MEUR 160.7).

 

The headcount was further increased to 1175 by the end of the second quarter of 2007, following 1086 as at 31 December 2006 and 1000 in the first quarter of 2006. Most of the new recruits were hired at Ternitz.

 

Following completion of the new forge at Ternitz, which contributes substantially to the increased production output of the site, the capex focus now is on building a new production plant in close cooperation with some key customers. As construction progress is as planned, it is safe to assume today that the plant will go onstream in the first quarter of 2008. Other major capex projects were capacity expansions at the North American and Mexican sites, mainly aimed at increasing production capacity.

 

The strong demand for oil will continue over the second half of 2007, provided that the global economic development remains unchanged. As for the oilfield service industry and SBO, this means sustained stability of the overall economic environment throughout the second half of 2007. SBO expects the excellent business development to continue throughout full 2007. Both the high order backlog and booking level are the basis of a robust development in the second half of 2007. Only further deterioration of the USD/EUR exchange rate could have a negative effect on the earnings situation, but chances are very likely that the record result of the previous year may once again be surpassed in 2007.  

 

 

 

 

*   based on average shares outstanding

**  reporting date 30 June.

 

Gerald Grohmann, Chief Executive Officer

Schoeller-Bleckmann Oilfield Equipment AG

A-2630 Ternitz, Hauptstraße 2
Tel: +43 2630/315 ext 110, fax: ext 101

e-mail: sboe@sbo.co.at

 

Mick Stempel, Hochegger|Financials
Tel: +43 1/504 69 87 DW 85

e-mail: m.stempel@hochegger.com