First quarter 2023: SBO with continued strong development
· Bookings increased to MEUR 158, sales up by around 50 % to MEUR 147
· EBIT rises to MEUR 27 (+72 %), profit after tax almost doubled to MEUR 21
Ternitz, 24 May 2023. Schoeller-Bleckmann Oilfield Equipment AG (SBO) started 2023 with tailwinds, which was reflected in the high demand for SBO’s products and services. The first quarter of 2023 saw a rise in bookings of around 22 % to MEUR 157.6, thus exceeding sales again, which grew by 47 % to MEUR 147.3. EBIT increased to MEUR 26.7, up by 72 %. The EBIT margin also showed a clear improvement, reaching 18.1 %. Profit after tax almost doubled to MEUR 21.3. Net liquidity increased to MEUR 41.7 and gearing improved to minus 9.5 %.
Gerald Grohmann, CEO of SBO: “After a record year in 2022, we continue to report a pleasing business development for the first quarter of the current year. The persistently high level of bookings shows that demand for our services remains unbroken. But of course, we are not resting on our laurels. With our high-tech products for the energy sector, we significantly contribute to enhancing energy security. At the same time, we are preparing for the future and aim to become a strong player in the renewable energies sector as we are in our core business.”
Robust bookings and continued strong growth
SBO’s bookings rose to MEUR 157.6 in the first three months of 2023 (1-3/2022: MEUR 129.1, +22.1 %). Sales increased significantly to MEUR 147.3 (1-3/2022: MEUR 100.5, +46.6 %). The order backlog at the end of March stood at MEUR 269.6 (31December 2022: MEUR 265.0).
Earnings before interest, taxes, depreciation and amortization (EBITDA) came in at MEUR 33.4 in the first quarter of 2023, compared to MEUR 23.5 in the first quarter of 2022. The EBITDA margin decreased slightly to 22.7 % (1-3/2022: 23.4 %), caused by exchange losses of MEUR 3.8 (1-3/2022: exchange gains of MEUR 1.8). Profit from operations (EBIT) amounted to MEUR 26.7, an increase of 72.2 % year-on-year (1-3/2022: MEUR 15.5).
SBO generated a profit before tax of MEUR 27.0 (1-3/2022: MEUR 14.3), with profit after tax almost doubling to MEUR 21.3 (1-3/2022: MEUR 11.4). Earnings per share increased to EUR 1.35 in the first quarter of 2023 (1-3/2022: EUR 0.72).
"The year 2023 has started promisingly for us. We are enjoying continued strong market momentum and strong customer demand. This is reflected in our figures, both in sales growth and in the significant increase in EBIT and EBIT margin. These results underpin our leading positioning in the market", comments SBO’s CEO Gerald Grohmann.
Positive development in both segments
SBO's business consists of the two segments “Advanced Manufacturing & Services” (AMS) and “Oilfield Equipment” (OE). Sales of the AMS segment rose to MEUR 81.9 in the first three months (1-3/2022: MEUR 49.1), profit from operations (EBIT) more than doubled to MEUR 17.5 (1-3/2022: MEUR 8.0). Sales of the OE segment grew to MEUR 65.4 (1-3/2022: MEUR 51.4), EBIT increased by about half to MEUR 11.7 (1-3/2022: MEUR 7.6).
Balance sheet further improved
As at 31 March 2023, SBO's equity amounted to MEUR 438.4 (31 December 2022: MEUR 425.0).
The equity ratio remained unchanged at 47.1 % (31 December 2022: 47.1 %). Net liquidity increased to MEUR 41.7 (31 December 2022: MEUR 34.5). Gearing improved to minus 9.5 % (31 December 2022: minus 8.1 %). Liquid funds grew to MEUR 302.5 (31 December 2022: MEUR 287.8). Cashflow from operating activities multiplied to MEUR 19.6 in the first quarter of 2023 (1-3/2022: MEUR 3.8), and free cashflow was clearly positive at MEUR 12.8, after a negative free cashflow of MEUR minus 1.3 in the first quarter of 2022. Capital expenditure in property, plant and equipment and intangible assets (excluding right of use assets) amounted to MEUR 7.3 (1-3/2022: MEUR 5.0).
Positive outlook for the remainder of the year
The oilfield service industry is starting 2023 with a positive outlook: The rising global demand for energy and effects of the necessary catch-up from underinvestment in the exploration and production of new oil and gas deposits in recent years require additional investment. Given the industry fundamentals, it is common belief that this spending cycle will be more durable and robust than previous cycles. While North America is expected to see flat growth due to the moderate development of the gas price and the ongoing budget discipline for a couple of years already, the Middle East, South America and Africa continue to be growth drivers in the industry. In addition, China, which was particularly impacted by the COVID-19 pandemic at the beginning of the year, is also displaying a resurgence in growth. The industry's positive outlook is underpinned by the need for supply security and mounting catch-up effects. The key components provided by SBO are important tools for successful and efficient drilling and well completion.
"We want to continue to provide energy security with our existing core business and see good growth opportunities in those business areas. At the same time, we are taking advantage of the current market situation to build a new segment in the new energy area. We are currently involved with our key components in geothermal projects on several continents. At present, we anticipate a very good financial year 2023", says CEO Gerald Grohmann.
SBO’s Key Performance Indicators at a glance
|
|
|
1-3/2023 |
1-3/2022 |
|
Sales |
MEUR |
147.3 |
100.5 |
|
Earnings before interest, taxes, depreciation and amortization (EBITDA) |
MEUR |
33.4 |
23.5 |
|
EBITDA margin |
% |
22.7 |
23.4 |
|
Earnings before interest and taxes (EBIT) |
MEUR |
26.7 |
15.5 |
|
EBIT margin |
% |
18.1 |
15.4 |
|
Profit before tax |
MEUR |
27.0 |
14.3 |
|
Profit after tax |
MEUR |
21.3 |
11.4 |
|
Earnings per share |
EUR |
1.35 |
0.72 |
|
Cashflow from operating activities |
MEUR |
19.6 |
3.8 |
|
Liquid funds as of 31 March 2023 / |
MEUR |
302.5 |
287.8 |
|
Net liquidity as of 31 March 2023 / 31 December 2022 |
MEUR |
41.7 |
34.5 |
|
Headcount as of 31 March 2023 / |
|
1,521 |
1,484 |
SCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesellschaft (SBO) is a globally operating group of companies and world market leader in the manufacture of high-alloy, non-magnetic stainless steels. The SBO Group is engaged in high-precision production of stainless steels as special components for the oil, gas and other industries by applying innovative and additive technologies. The SBO Group is equally recognized worldwide for its directional drilling tools and equipment for well completion. With its subsidiaries and more than 1,500 employees worldwide, the Group is successfully positioned in technologically demanding, profitable niches. The Group is headquartered in Ternitz, Austria. Making an active contribution to energy transition is a key element of the Group's Strategy 2030. More detailed information on the Strategy 2030 and sustainable management (ESG) is available in the Annual Report 2022 at https://www.sbo.at/publikationen.
Contact:
Andreas Böcskör, Group Communications
Schoeller-Bleckmann Oilfield Equipment AG
Tel: +43 2630 315 DW 252
E-Mail: a.boecskoer@sbo.co.at
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