Sound International Business Development: Sales rise to MEUR 346 in the First Three Quarters of 2019, EBIT stable at MEUR 55
· Profit before tax amounted to MEUR 43
· Cashflow from operating activities multiplied by a factor of six to MEUR 75
Ternitz, 28 November 2019 - Schoeller-Bleckmann Oilfield Equipment AG (SBO), which is listed in the ATX, the leading index of the Vienna Stock Exchange, generated a sound result in the first three quarters of 2019. Sales rose by 11.3 % to MEUR 345.9, the operating income (EBIT) remained stable at MEUR 54.5. With an EBIT margin of 15.8 %, SBO is one of the most profitable companies in the leading ATX index. Profit before tax amounted to MEUR 43.5, a plus of 4.6 %. Profit after tax came to MEUR 26.6. Cashflow from operating activities was strong and more than multiplied by a factor of six to MEUR 74.7.
Gerald Grohmann, Chief Executive Officer of SBO, says: "The first nine months of 2019 went well for SBO. While former pacesetter North America has slowed down significantly this year, international markets have gradually been catching up as their activities were on the increase. We had experienced these different market situations before and consistently pursue our course."
Sound Business Performance
SBO's sales increased by 11.3 % to MEUR 345.9 in the first three quarters of 2019 (1-9/2018: MEUR 310.8). Bookings remained stable at MEUR 376.5, compared to MEUR 368.1 in the reference period of last year. The order backlog at the end of September 2019 was MEUR 131.3 (31 December 2018: MEUR 97.7).
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased from MEUR 89.8 in the first three quarters of 2018 to MEUR 91.6 in 2019. EBITDA margin arrived at 26.5 %, which is above the long-term average of 24.3 %. Profit from operations (EBIT) stood at MEUR 54.5 (1-9/2018: MEUR 54.3), EBIT margin was 15.8 %. Profit before tax increased by 4.6 % to MEUR 43.5, compared to MEUR 41.6 in the first three quarters of 2018. Profit after tax decreased to MEUR 26.6 because of higher tax expenses than in the previous year (1-9/2018: MEUR 33.0). Earnings per share came to EUR 1.67 (1-9/2018: EUR 2.07).
As announced at mid-year, the two North American well completion subsidiaries of SBO, Downhole Technology and Resource Well Completion Technologies, were combined as of 1 October 2019 under the name "The WellBoss Company".
“Despite the slow development in North America, we took full advantage of the growing international momentum and achieved a solid result. Bookings are again higher than sales, which we regard as a positive signal. We are working very actively to supply our customers with new technologies and to further strengthen our service. With the combination of our Well
Completion companies our customers get the best of both product worlds from a single source and benefit from our joint innovative capacity going forward. At the same time, we are strengthening international distribution of our well completion products,“ says CEO Gerald Grohmann.
Healthy Balance Sheet, Cashflow rises sharply
The balance sheet structure of SBO is sound. SBO's equity went up to MEUR 400.5 (31 December 2018: MEUR 368.2), and the equity ratio arrived at 43.9 % (31 December 2018: 40.9 %). Net debt fell to MEUR 31.5 (31 December 2018: MEUR 62.5). Liquid funds increased to MEUR 260.4 (31 December 2018: MEUR 241.5). Cashflow from operating activities developed highly positively, arriving at MEUR 74.7 at the end of the third quarter of 2019, more than multiplying by a factor of six compared to the previous year (1-9/2018: MEUR 12.1). Capital expenditure for property, plant and equipment, and intangible assets (CAPEX) came to MEUR 23.9 (exclusive of lease assets) (1-9/2018: MEUR 24.9).
Outlook
The market environment for the oilfield service industry will remain impacted by economic uncertainty as a result of the unresolved trade conflict between the USA and China. Internationally, experts expect the growth to continue, albeit there may be differences between regions. After years of crisis in the oil and gas industry, there is an increasing awareness of the need for spending to avoid supply bottlenecks in the medium term, provided that the development of the global economy is reasonably sound. In North America, by contrast, it is becoming apparent that declining spending coupled with an above-average natural depletion rate will lead to a significant slowdown in production growth. This should have a positive effect on the oil price in the medium term and thus on spending in this sector.
“We see a positive effect in our order books due to international spending for exploration and production of oil and gas. There is still a lot of catching up to do and that will increase as demand is growing. If the economy continues to be buoyant, spending behavior should be further stimulated," says CEO Gerald Grohmann. "The development of efficient, high-quality
products is an integral part of our sustainable growth strategy. This will help us to strengthen our positioning in all markets. It is the area of Well Completion where we have recently succeeded in developing efficiency-enhancing innovations which we will now market worldwide.“
SBO's Key Performance Indicators at a glance
|
|
|
1-9/2019
|
1-9/2018
|
|
Sales
|
MEUR
|
345.9
|
310,8
|
|
Earnings before interest, taxes, deprication and amortization (EBITDA)
|
MEUR
|
91.6
|
89.8
|
|
EBITDA margin
|
%
|
26.5
|
28.9
|
|
Earnings before interest and taxes (EBIT)
|
MEUR
|
54.5
|
54.3
|
|
EBIT margin
|
%
|
15.8
|
17.5
|
|
Profit before tax
|
MEUR
|
43.5
|
41.6
|
|
Profit after tax
|
MEUR
|
26.6
|
33.0
|
|
Earnings per share
|
EUR
|
1.67
|
2.07
|
|
Cashflow from operating activities
|
MEUR
|
74.7
|
12.1
|
|
Liquid funds as of 30 September 2019 / 31 December 2018
|
MEUR
|
260.4
|
241.5
|
|
Headcount as of 30 September 2019 / 31 December 2018
|
|
1,544
|
1,646
|
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 September 2019, SBO employed a workforce of 1,544 worldwide (31 December 2018: 1,646), thereof 394 in Ternitz / Austria and 804 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
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