International Markets support Growth for SBO: Profit after tax in first half of 2019 up 31 % to MEUR 17.2
· Sales increase by 18 % to MEUR 236.2, EBIT to MEUR 37.9 (+18 %)
· Combination of Well Completion subsidiaries in the second half of the year
Ternitz, August 22, 2019. Schoeller-Bleckmann Oilfield Equipment AG (SBO) looks back on a positive first half of 2019. While demand in North America declined and the effects of the subdued spending policy of the exploration and production companies became evident, international markets continued to develop dynamically. Driven by the international growth opportunities, SBO was able to increase its earnings figures soundly in the first six months. SBO's sales increased by +18 % to MEUR 236.2, EBIT went up by +18 % to MEUR 37.9. Profit before tax rose by almost half to MEUR 27.4 and profit after tax arrived at MEUR 17.2, up by around one third in yearly comparison.
In the second half of 2019, the two well completion subsidiaries of SBO, Downhole Technology and Resource Well Completion Technologies, will be combined into one company under the name "The WellBoss Company". Synergies can be used, as product ranges and sales regions of Downhole Technology and Resource complement each other. The two sites in Houston, USA and Calgary, Canada will remain in place.
CEO Gerald Grohmann says: "We look back on a sound first half of 2019 and have achieved double-digit growth globally. But there are regional differences. In North America, exploration and production companies are becoming increasingly cautious and are strongly focusing on cost cutting. On the international markets, however, we continue to see a healthy environment, particularly in South America, the Middle East, the North Sea region and the Far East. We want to make even better use of this overall situation also for our Well Completion business and are preparing ourselves for growing internationalization in this sector.“
Sales and earnings increased, solid balance
Sales generated by SBO, which is listed in the leading ATX index of the Vienna Stock Exchange, in the first half of 2019 grew to MEUR 236.2 (1-6/2018: MEUR 200.0), up 18.1 %. Bookings totalling MEUR 247.8 remained stable year-on-year (1-6/2018: MEUR 244.1), the order backlog at the end of June 2019 came to MEUR 112.1 (31 December 2018: MEUR 97.7).
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose from MEUR 55.8 in the first half of 2018 to MEUR 62.7 in 2019. The EBITDA margin arrived at 26.5 %, which is above the long-term average of 24.3 %. The profit from operations (EBIT) went up by 18.2 % to MEUR 37.9 (1-6/2018: MEUR 32.1). SBO's profit before tax climbed to MEUR 27.4, up 46.1 % from MEUR 18.8 in the first half of 2018. Profit after tax rose by 30.6 % to MEUR 17.2 (1-6/2018: MEUR 13.2). Earnings per share for the first half of 2019 arrived at EUR 1.08 (1-6/2018: EUR 0.83).
SBO's equity went up to MEUR 373.3 (31 December 2018: MEUR 368.2), and the equity ratio arrived at 42.7 % (31 December 2018: 40.9 %). Net debt rose slightly to MEUR 67.5 (31 December 2018: MEUR 62.5) due to dividend payments and purchase price payments for the acquisition of minority shares. Liquid funds amounted to MEUR 227.0 (31 December 2018: MEUR 241.5). The operating cashflow in the first half of 2019 came to MEUR 38.2 (1-6/2018: MEUR 9.3). Capital expenditure for property, plant, and equipment and intangible assets came to MEUR 15.9 (exclusive of lease assets) (1-6/2018: MEUR 16.4).
„Our development in the first half of 2019 was sound and our overall performance was solid. Our business structure, with its two geographical focal areas of North America and International, has once again proven its worth in the current environment. We will use this structure also at the integration of our both well completion companies and drive forward market penetration in North America and international expansion. The product ranges and sales territories of Downhole Technology and Resource Well Completion Technologies complement each other ideally. Combining them will enable us to leverage synergies and exploit the complementary strengths of the two companies“, says CEO Gerald Grohmann.
Outlook
Despite a slowdown in global economic growth due to trade conflicts, the environment for the oilfield service industry on the international market remains sound. Experts expect spending for exploration and production (E&P) to rise by 12 % internationally in 2019. North America has recently experienced a sharp change in direction. The high budget discipline of the exploration and production companies is reflected in the United States (mainland) in particular, where E&P spending is expected to drop by around 10 %.
„In the tense North American environment the market calls for further efficiency enhancements which our products help to achieve. However, we will not be able to fully escape from the pricing pressure coming along therewith. We have profited through our balanced strategy from the upswing in North America, which started first, and are now making targeted use of the momentum of international demand in our activities“, concludes CEO Gerald Grohmann.
SBO's key performance indicators at a glance
|
|
|
1-6/2019
|
1-6/2018
|
|
Sales
|
MEUR
|
236.2
|
200.0
|
|
Earnings before interest, taxes, depreciation and amortization (EBITDA)
|
MEUR
|
62.7
|
55.8
|
|
EBITDA margin
|
%
|
26.5
|
27.9
|
|
Earnings before interest and taxes (EBIT)
|
MEUR
|
37.9
|
32.1
|
|
EBIT margin
|
%
|
16.0
|
16.0
|
|
Profit before tax
|
MEUR
|
27.4
|
18.8
|
|
Profit after tax
|
MEUR
|
17.2
|
13.2
|
|
Earnings per share
|
EUR
|
1.08
|
0.83
|
|
Cashflow from operating activities
|
MEUR
|
38.2
|
9.3
|
|
Liquid funds as of 30 June 2019 / 31 December 2018
|
MEUR
|
227.0
|
241.5
|
|
Headcount as of 30 June 2019 / 31 December 2018
|
|
1,550*
|
1,646
|
* The headcount decrease from restructuring measures is included.
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 30 June 2019, SBO employed a workforce of 1,550 worldwide (31 December 2018: 1,646), thereof 376 in Ternitz / Austria and 826 in North America (including Mexico).
Contact:
Andreas Böcskör, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
Tel: +43 2630 315 ext. 252, Fax: ext. 101
E-Mail: a.boecskoer@sbo.co.at
back
