Schoeller-Bleckmann Oilfield Equipment AG: Profit before tax doubled in the first nine months of 2006 – sales up 43 %, positive market environment remains

Ternitz, 23 November 2006.Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the ATX prime market of the Vienna Stock Exchange, could continue its course of growth throughout the third quarter of 2006. Compared with the previous year, sales revenues in the first nine months of 2006 rose by 43 % to MEUR 176.6 (following MEUR 123.9). Profit before tax doubled by 101 % to a total of MEUR 33.9 following MEUR 16.9 year-on-year. Net income was improved by 105 % from MEUR 12.0 in the first nine quarters of 2005 to MEUR 24.5 in the same period of 2006. The EBIT margin arrived at a record level of 19.9 % (following 14.5 % year-on-year) in the first three quarters of 2006.

„The booming development in the oilfield service industry continued undiminished also over the third quarter of 2006. The sustained high demand for oil and the ambitious exploration programmes of international oil companies are supporting the current upswing in the industry“, says Gerald Grohmann, SBO’s Chief Executive Officer. „We have made full use of the strong market environment by implementing our capacity expansion programme launched in 2005 on which we have spent MEUR 58 by now. In the process, at the Ternitz site the first machine tools for high-precisions components (MWD/LWD) acquired under the capacity expansion programme were already commissioned, and the construction works required for the next expansions stages were advanced speedily“, comments Mr Grohmann on the capacity expansion programme. Moreover, the group’s headcount was massively increased by around 20 %. „We are very pleased to have recruited highly qualified employees, in particular in production, despite of the tense labour market situation concerning skilled workers in the oilfield service industry“, says Gerald Grohmann.

The strong demand was mirrored in a new record level of bookings worth MEUR 102.1 received in the third quarter of 2006. For the first time ever, the MEUR 100 threshold for quarterly bookings was exceeded. The demand was observed in all segments and regions alike. Part of the most recent orders have already been scheduled for fiscal 2008. The order backlog at the end of the third quarter amounted to MEUR 218.3, up 91 % against the comparative figures of the previous year.

Sustained positive development expected for the 2006 business year

SBO expects the strong market environment in the oilfield service industry to sustain throughout the next quarters. The challenges to be met in the months ahead will be the further expansion and optimisation of production capacities, planning and procurement of required raw materials and the speedy implementation of the capacity expansion and investment programme. As for fiscal 2006, Schoeller-Bleckmann expects to see another absolute record year. However, effects such as the euro-dollar exchange rate at the end of the year will have to be considered.

Comparison of key figures in MEUR

	1-9/2006	1-9/2005
Sales revenues	176,6	123,9
EBIT	35,1	17,9
EBIT margin (%)	19,9	14,5
Profit before tax	33,9	16,9
Net income	24,5	12,0
EPS*	1,53	0,80
Headcount**	1.051	875

* based on average shares outstanding

** Reporting date September 30

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. Worldwide, SBO employs a workforce of 1,051 (December 31, 2005: 913), 275 at Ternitz/Austria and 550 in North America (including Mexico).

 

For further information please contact:

Gerald Grohmann, Vorsitzender des Vorstandes

Schoeller-Bleckmann Oilfield Equipment AG

A-2630 Ternitz, Hauptstraße 2

Tel: +43 2630/315 DW 110, Fax: DW 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

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