Schoeller-Bleckmann Oilfield Equipment AG: Sound development during the first nine months of 2014 – stable results with high profitability – growing bookings – increased earnings per share.

Ternitz/Vienna, 19 November 2014. The business of Schoeller-Bleckmann Oilfield Equipment AG (SBO) showed a sound development for the third quarter of 2014, continuing the positive trend of the first two quarters. Increasing bookings has led to results for the first nine months of 2014 exceeding last year's figures.

SBO's revenues during the first nine months rose by 2.3%, to MEUR 356.6 (1-9/2013: MEUR 348.5). EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 2.1% to MEUR 102.9 (1-9/2013: MEUR 100.8), EBIT (earnings before interest and taxes) in 2014 was MEUR 72.0, or 9.5% up from the previous year (1-9/2013: MEUR 65.8 ). Profit before tax were at MEUR 64.5 (1-9/2013: MEUR 60.8), a 6.1% plus in a year-on-year comparison, while profit after tax rose by 11.4% to MEUR 46.8 (1-9/2013: MEUR 42.0). Earnings per share were EUR 2.93 (1-9/2013: EUR 2.60) after the first nine months.

Margins also had a positive development in the year-on-year comparison: While the EBITDA margin remained at last year's level of 28.9%, the EBIT margin improved slightly to 20.2% (1-9/2013: 18.9%1), and the pre-tax margin also showed a moderate plus at 18.1% (1-9/2013: 17.5%). In the first nine months of 2014, SBO managed to increase its bookings by 11.7% to MEUR 369.4 (1-9/2013: MEUR 330.8). Total order backlog as of 30 September 2014 was MEUR 123.6 (30 Sept. 2013: MEUR 127.8), with a significant portion thereof reaching into the year 2015.

SBO Chairman of the Board, Gerald Grohmann, points out: "As already expected at the beginning of the year, our development in the first nine months of 2014 has been absolutely sound with increased bookings and high profitability. However, the environment of the oilfield service industry has become more volatile in the last few months. So far, declining oil prices have no impact on drilling activities. Yet, the market lacks confidence with a future development difficult to foresee, a fact which has our full attention."

SBO's investments in plant, property and equipment amounted to MEUR 31.3 (1-9/2013: MEUR 46.4) during the first nine months of 2014, with a focus on the further expansion of our drilling motor fleet in the U.S. and Canada, and the DSI circulation tools fleet.


SBO plans to raise profitability in England by exploiting potential cost synergies between its two subsidiaries “Techman Engineering Ltd.” and the close-by “Darron Tool & Engineering Ltd.” Furthermore, fixed costs can be cut by optimizing processes and eliminating duplication of work. An improved cost structure should allow for an expansion of business in the future. SBO expects relevant costs for the required measures in the amount of up to MEUR 5.0, which will be reflected in the 2014 annual income.


Outlook

The global market is currently well supplied with oil. The weakened macro-economic development and slackening demand have prompted the International Energy Agency (IEA) to slightly revise down its oil consumption forecast for 2014, from 92.6 mb/d to 92.4 mb/d.

The environment of the oilfield service industry has become significantly more volatile during the past few months. The political instability in Ukraine and the Middle East, weakening global economic growth paired with significantly lower oil prices due to slackening demand on the one hand, as well as sufficient supplies on the other, might affect the business environment of the oilfield service industry. Regardless of any short-term market developments, SBO is in the position to quickly adjust to any change due to its high degree of flexibility.

Also in the fourth quarter of 2014, the Oilfield Equipment segment should develop in line with global drilling activities which are on a stable level in all world regions. Due to the ongoing expansion of the drilling motor fleet and the high market acceptance for DSI circulation tools, SBO is in an excellent position to benefit from this trend. The further business development in the High-Precision Components segment will primarily reflect future CAPEX outlays of global players in the oilfield services sector.

The long-term trend for more technology required to cope with growing oil and gas consumption benefits SBO und remains unchanged despite current market volatility.

Comparison of Key Performance Indicators:

*) after non-recurring items
**) based on the average number of shares in the market
***) as of September 30.

1) after non-recurring items

Schoeller-Bleckmann Oilfield Equipment AG is the global market leader in high-precision components and a leading provider of oilfield equipment for the oilfield service industry. The business focus is on non-magnetic drill string components, high-performance drilling motors and circulation tools for directional and horizontal drilling. As of 30 Sept. 2014, SBO employed a staff of 1,663 (31 Dec. 2013: 1,574), 449 thereof in Ternitz / Austria and 658 in northern America and Mexico.

For questions please contact:
Florian Schütz, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz, Hauptstraße 2
Tel: +43 2630/315 ext. 251, Fax: DW 501
E-Mail: f.schuetz@sbo.co.at