Schoeller-Bleckmann Oilfield Equipment AG posts significant increase in earnings in 2018
- Sound environment in North America and revival of international markets spur SBO
- Sales rise by approximately 30 % to MEUR 420, EBIT almost tripled to approximately MEUR 71
- Proposed dividend of EUR 1.00 per share
Ternitz/Vienna, 19 March 2019. Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the ATX market of the Vienna Stock Exchange, looks back on a successful 2018 business year. As SBO had sized up capacities early, the company benefited from its strong position in North America and the recovery of the international markets so as to serve increased demand. This led to a marked increase in earnings and a significant improvement of the company's key performance indicators.
Bookings received by SBO in 2018 climbed by 40.9 % to MEUR 481.9 (2017: MEUR 342.0). Sales rose by 29.6 % and arrived at MEUR 420.2, following MEUR 324.2 in 2017. Order backlog at the end of 2018 was MEUR 97.7 (31. December 2017: MEUR 37.6).
Earnings before interest, taxes, depreciation, and amortization (EBITDA) went up from MEUR 74.7 in 2017 to MEUR 120.0 in 2018. EBITDA margin stood at 28.6 %, above the long-term average of 24.3 %. Profit from operations (EBIT) before non-recurring items tripled from MEUR 23.6 in 2017 to MEUR 74.6, and the EBIT after non-recurring items totalled MEUR 70.7 (2017: MEUR 25.6). This figure includes expenses resulting from a restructuring program under which SBO is closing two sites in Mexico and England. Production capacities will be relocated to other sites to retain them to a large extent. These measures are additional steps for efficiency and productivity enhancements within the Group.
SBO improved profit before tax substantially to MEUR 55.9, compared to MEUR minus 69.8 in 2017. Profit after tax was MEUR 41.4 (2017: MEUR minus 54.4). The financial result arrived at MEUR minus 14.8 (2017: MEUR minus 95.4). The results of the previous year had included non-cash expenses related to the shares of minority shareholders (option) of a company acquired in 2016. Earnings per share amounted to EUR 2.59 in 2018 (2017: EUR minus 3.41).
"A sound year lies behind us. We promptly responded to the improved market situation and adjusted the headcount to the increase in demand. With that, we could make perfect use of the momentum of the upswing, as can be seen from our results", says Gerald Grohmann, CEO of SBO. "In addition to the growth in North America, recovery in the international markets has finally set in. This was an important development after three years of crisis in the market and provided a good starting point for 2019."
Sound balance sheet
The balance sheet structure of SBO remains sound. Shareholders' equity increased to MEUR 368.2 (2017: MEUR 322.0). The equity ratio of SBO at the end of 2018 was 40.9 % (2017: 42.9 %), the net debt was MEUR 62.5 (2017: MEUR 50.7). Liquid funds totalled MEUR 241.5 (2017: MEUR 166.0). Cashflow from operating activities came to MEUR 33.4 (2017: MEUR 44.6), and the gearing ratio arrived at 17.0 % (2017: 15.7 %). Capital expenditure for property, plant, and equipment and intangible assets (CAPEX), including expenditures for extending production capacities, rose to MEUR 35.9 (2017: MEUR 32.1). Purchase commitments for property, plant, and equipment amounted to MEUR 2.1 (2017: MEUR 1.2).
The Executive Board will propose to the Annual General Meeting a dividend of EUR 1.00 per share for business year 2018 (compared to EUR 0.50 in the previous year).
Sustainable growth strategy
SBO is consistently pursuing its sustainable growth strategy through focused capacity expansion and deployment, ongoing research and development activities and continuous efficiency improvements. Innovations such as “all composite frac plugs” in the Well Completion application area and the "Direct Metal Laser Sintering" (DMLS) centers in Austria and the United States, where customized, highly complex metal parts are produced in 3D printing, are driving forward SBO's role as frontrunner. "Our spending focus is on securing our growth so we can keep offering our customers highly efficient products of superior quality", concludes Grohmann and adds: "Despite the uncertainties on the capital markets, the outlook for the year 2019 remains positive.”
Comparison of SBO's key performance indicators
|
|
|
2018
|
2017
|
|
Sales
|
MEUR
|
420.2
|
324.2
|
|
Earnings before interest, taxes, depreciation and amortization
(EBITDA) |
MEUR
|
120.0
|
74.7
|
|
EBITDA margin
|
%
|
28.6
|
23.0
|
|
Profit from operations (EBIT)
before non-recurring items
|
MEUR
|
74.6
|
23.6
|
|
Profit from operations (EBIT)
|
MEUR
|
70.7
|
25.6
|
|
EBIT margin
|
%
|
16.8
|
7.9
|
|
Profit before tax
|
MEUR
|
55.9
|
-69.8
|
|
Profit after tax
|
MEUR
|
41.4
|
-54.4
|
|
Earnings per share
|
EUR
|
2.59
|
-3.41
|
|
Cashflow from operating activities
|
MEUR
|
33.4
|
44.6
|
|
Liquid funds
|
MEUR
|
241.5
|
166.0
|
|
Headcount
|
|
1,646
|
1,432
|
SBO is a leading supplier of tools and equipment for directional drilling and well completion applications and 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 high-efficiency solutions and products for the oil and gas industry. As of 31 December 2018, SBO employed a workforce of 1,646 worldwide (31 December 2017: 1,432), thereof 369 in Ternitz / Austria and 861 in North America (including Mexico).
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
e-mail: a.boecskoer@sbo.co.at
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