Schoeller-Bleckmann Oilfield Equipment AG: Sales and earnings continue path of growth in the first three quarters of 2018
- Sales increase by more than a third to MEUR 311, operating result (EBIT) by a factor of five to MEUR 54
- Current uncertainties in the markets create volatile environment
Ternitz/Vienna, 28 November 2018. Schoeller-Bleckmann Oilfield Equipment AG (SBO) delivered a strong performance in the first three quarters of 2018 and further increased its earnings. The company, which is listed on the ATX market of the Vienna Stock Exchange, took advantage of the positive oil price environment and the growing willingness of customers to invest in order to drive up sales of its highly efficient drilling tools and products. SBO responded early to the upswing, which is reflected in the company's business success: sales and earnings rose significantly in the first three quarters of 2018.
SBO's sales amounted to MEUR 310.8, up more than one third compared to the reference period of last year (1-9/2017: MEUR 227.6). Bookings climbed by 52.4 % to MEUR 368.1, from MEUR 241.5 in the same period of last year. The order backlog went up to MEUR 93.2 by the end of September 2018 (31 December 2017: MEUR 37.6).
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose to MEUR 89.8 (1-9/2017: MEUR 48.5), an increase of 85.4 %. The EBITDA margin during the reporting period was 28.9 % (1-9/2017: 21.3 %), well above the long-term average of 24.1 %. The operating result (EBIT) increased almost fivefold to MEUR 54.3 (1-9/2017: MEUR 11.0), including a one-off income of MEUR 1.9 from a land sale in 2018. The EBIT margin was 17.5 % (1-9/2017: 4.8 %). The financial result amounted to MEUR minus 12.7 (1-9/2017: MEUR minus 95.5, including an expense from the revaluation of option commitments amounting to MEUR minus 89.5). Profit before tax climbed to MEUR 41.6, compared to MEUR minus 84.5 in the same period last year. Profit after tax was MEUR 33.0 (1-9/2017: MEUR minus 86.2). Earnings per share amounted to EUR 2.07 (1-9/2017: EUR minus 5.41).
"We look back on three strong quarters of excellent development and, consequently, have generated a sound business result," says SBO's CEO Gerald Grohmann. "This year we have gradually hired new employees and expanded capacities. Our investments have been targeted on growth of our company."
Sound balance sheet
The balance sheet structure of SBO remains sound: shareholders' equity increased to MEUR 357.8 in the first three quarters of 2018 (31 December 2017: MEUR 322.0). The equity ratio at the end of the first three quarters of 2018 was 38.6 % (31 December 2017: 42.9 %), net debt was MEUR 75.5 (31 December 2017: MEUR 50.7).
Liquid funds stood at MEUR 266.3 at the end of the first three quarters (31 December 2017: MEUR 166.0). The operating cashflow was MEUR 12.1 (1-9/2017: MEUR 23.0), free cash flow was MEUR minus 11.9 (1-9/2017: MEUR 1.0). Capital expenditure for property, plant, equipment and intangible assets (CAPEX) amounted to MEUR 24.9 (1-9/2017: MEUR 25.3). Purchase commitments for property, plant and equipment totalled MEUR 3.6 as of 30 September 2018 (31 December 2017: MEUR 1.2).
Volatile environment due to market uncertainties, stabilisation expected in 2019
Pressure on the world economy is increasing significantly as a result of geopolitical events and trade policy measures. However, the reaction of the market, which is also reflected in a sharp drop in oil prices over the recent weeks, is comprehensible only to some extent, as forecasts for the development of the global economy remain intact, despite recent corrections.
The low level of spending for oil and gas exploration in recent years has created a great backlog demand in the oil and oilfield service industry. Provided that global economic growth continues, the industry will be confronted with the task to have maintained a balance between supply and demand for oil and gas in the years ahead.
"US oil production has risen above expectations. In addition, exemptions from US sanctions have at least temporarily allowed more Iranian oil in the market than originally assumed. However, there should be no oversupply if OPEC's production is reduced as announced. This should stabilise oil prices again," outlines Gerald Grohmann. "Heavily curtailed spending in recent years has resulted in an overaging of mature oil and gas fields. Those natural production losses will have to be compensated by additional spending in the upcoming years. And we are prepared," concludes Mr. Grohmann.
Comparison of SBO's key performance indicators
|
|
|
1-9/2018
|
1-9/2017
|
|
Sales
|
MEUR
|
310.8
|
227.6
|
|
Earnings before interest, taxes, depreciation, and amortisation (EBITDA)
|
MEUR
|
89.8
|
48.5
|
|
EBITDA margin
|
%
|
28.9
|
21.3
|
|
Earnings before interest and taxes (EBIT)
|
MEUR
|
54.3
|
11.0
|
|
EBIT margin
|
%
|
17.5
|
4.8
|
|
Profit before tax
|
MEUR
|
41.6
|
-84.5
|
|
Profit after tax
|
MEUR
|
33.0
|
-86.2
|
|
Earnings per share
|
EUR
|
2.07
|
-5.41
|
|
Cash-flow from operating activities
|
MEUR
|
12.1
|
23.0
|
|
Liquid funds as of 30 September 2018 / 31 December 2017
|
MEUR
|
266.3
|
166.0
|
|
Headcount as of 30 September 2018 / 31 December 2017
|
|
1,650
|
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 customised components for the oilfield service industry to high-efficiency solutions and products for the oil and gas industry. As of 30 September 2018, SBO employed a workforce of 1,650 worldwide (31 December 2017: 1,432), thereof 352 in Ternitz / Austria and 892 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
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