Schoeller-Bleckmann Oilfield Equipment AG: Business development in HY 2018 continues on path of growth, sales and earnings rising further
- Growth in North America ongoingly robust, first signs of recovery internationally
- Sales up nearly 50 % to MEUR 200, operating result (EBIT) to MEUR 32 and clearly positive
- North America remains driver of growth, SBO benefits from top positioning
Ternitz/Vienna, 23 August 2018. Schoeller-Bleckmann Oilfield Equipment AG (SBO) continued to grow in the first half of 2018, driving forward the company's positive development. The strong market in North America combined with gradually recovering international markets had a positive effect on the company listed on the ATX segment of the Vienna Stock Exchange. Within this healthy market environment, demand for highly efficient tools and equipment from SBO was rising, as reflected in sharply rising bookings and sizable increases in sales and earnings.
In the first half of 2018, SBO's sales climbed by 47.4 % to MEUR 200.0, following MEUR 135.7 in the same period last year. Bookings went up even higher, by 62.8 % to MEUR 244.1 (1-6/2017: MEUR 150.0).Therefore, the book-to-bill ratio, which measures the amount of orders coming in compared to sales, was greater than 1. The order backlog more than doubled, standing at MEUR 79.6 at the end of the first half of 2018 (31 December 2017: MEUR 37.6).
"The expectations we had as we started into 2018 have already been met by the market. North America is performing strongly, and international markets are now also showing clear signs of recovery", says SBO's CEO Gerald Grohmann. "We have prepared thoroughly for the upswing, and our business development demonstrates that the measures we have implemented are taking effect. We are efficiently positioned, and our range of technologically sophisticated solutions is in great demand among our customers. This is reflected in our growing sales figures and strong business result."
Result significantly improved, balance sheet remains sound
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) more than doubled year-on-year to MEUR 55.8, following MEUR 22.0 in the first half of 2017. Compared with the same period last year, the operating result (EBIT) clearly returned to positive territory, standing at MEUR 32.1 (1-6/2017: MEUR minus 3.6). The EBITDA margin improved further to 27.9 % (1-6/2017: 16.2 %), arriving above the long-term average of 24.1 %, while the EBIT margin was 16.0 % (1-6/2017: minus 2.6 %).
In the first half of 2018, the financial result amounted to MEUR minus 13.3 (1-6/2017: MEUR minus 4.4). Profit before tax turned positive and increased considerably to MEUR 18.8 (1-6/2017: MEUR minus 8.0). Profit after tax climbed to MEUR 13.2 (1-6/2017: MEUR minus 6.2), including the positive effects of the tax reform initiated in the United States. Earnings per share amounted to EUR 0.83 (1-6/2017: EUR minus 0.39).
The balance sheet structure of SBO remains sound: Equity rose to MEUR 334.4 in the first half of 2018 (31 December 2017: MEUR 322.0). After the raising of new loans amounting to MEUR 137.3 and the associated increase in total assets, the equity ratio decreased slightly, arriving at 36.6 % at the end of the first half of 2018 (31 December 2017: 42.9 %). Net debt amounted to MEUR 71.4 (31 December 2017: MEUR 50.7). At the end of the first half of the year, liquid funds stood at MEUR 278.9 (31 December 2017: MEUR 166.0). Cashflow from operating activities amounted to MEUR 9.3 (1-6/2017: MEUR 6.3), free cashflow to MEUR minus 8.7 (1-6/2017: MEUR minus 3.2). This resulted from the increase in capital expenditure due to the high demand and the acquisition of the remaining 33 % of shares in Canadian subsidiary Resource Well Completion Technologies Inc. ("Resource") worth MEUR 2.6. The company is now a wholly-owned business of the SBO group.
"The optimism in our industry is reflected in our key figures. Needless to say that also we have a very close eye on the protective trade endeavors currently discussed – in particular those by the United States. However, it is our fundamental expectation that the upward trend that has set in will continue," says CEO Gerald Grohmann. "That is why we will continue to invest in our growth. For example, we are currently looking into expanding our production capacities in Vietnam, where we see particularly strong demand. In any case, we will continue to exploit all opportunities offered by the growing markets," concludes Mr. Grohmann.
Comparison of SBO's key performance indicators
|
|
|
1-6/2018
|
1-6/2017
|
|
Sales
|
MEUR
|
200.0
|
135.7
|
|
Earnings before interest, taxes, depreciation, and amortisation (EBITDA)
|
MEUR
|
55.8
|
22.0
|
|
EBITDA margin
|
%
|
27.9
|
16.2
|
|
Earnings before interest and taxes (EBIT)
|
MEUR
|
32.1
|
-3.6
|
|
EBIT margin
|
%
|
16.0
|
-2.6
|
|
Profit before tax
|
MEUR
|
18.8
|
-8.0
|
|
Profit after tax
|
MEUR
|
13.2
|
-6.2
|
|
Earnings per share
|
EUR
|
0.83
|
-0.39
|
|
Cashflow from operating activities
|
MEUR
|
9.3
|
6.3
|
|
Liquid funds as of 30 June 2018 / 31 December 2017
|
MEUR
|
278.9
|
166.0
|
|
Headcount as of 30 June 2018 / 31 December 2017
|
|
1,612
|
1,432
|
SBO is a leading supplier of tools and equipment for directional drilling and well completion applications and the global market leader in the manufacture of high-precision components made of non-magnetic steel. The product offering ranges from complex customer-specific components for the oilfield service industry to high-efficiency solutions and products for the oil and gas industry. As of 30 June 2018, SBO employed a workforce of 1,612 worldwide (31 December 2017: 1,432), thereof 327 in Ternitz / Austria and 885 in North America (including Mexico).
Further inquiry note:
Andreas Böcskör, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz. Hauptstraße 2
Phone: +43 2630/315 ext 252, fax ext 101
E-Mail: a.boecskoer@sbo.co.at
back
