Schoeller-Bleckmann Oilfield Equipment AG: New half-year record sales and profit figures – Half-year profit before tax doubled to MEUR 21.4 – sustained boom in oilfield service industry

Ternitz, August 24, 2006. Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the ATX prime market of the Vienna Stock Exchange, posted new record sales and profit figures in the first half of 2006. Sales revenues improved 45.3% to MEUR 114.9 in the first six months of 2006, following MEUR 79.1 in the same period of 2005. Profit before tax doubled from MEUR 10.6 in the first six months of 2005 to MEUR 21.4. The EBIT margin rose to around 19% in the first half of 2006 (following 14% in the first half of 2005).

„The boom in the oilfield service industry continues unabated, since the demand for oil and gas remains at a high level. At SBO, we have set the course for growth in good time and laid the foundations for this dynamic upward tendency by permanently building up our manufacturing capacities combined with an expansive human resources policy“, comments Gerald Grohmann, SBO’s Chief Executive Officer, on the new record result. The strategic investment programme launched last year at Schoeller-Bleckmann Oilfield Equipment AG, which is scheduled to be completed by the end of 2007, is proceeding well. „On the whole, we will invest over MEUR 50 in expanding our existing sites alone. With this, we set the course for our group’s further growth and secure the leading global position we hold in high-precision components for the oilfield service industry“, says Mr Grohmann.

Record order backlog secures excellent business development in 2006

It is safe to assume that the international oil companies will pursue their exploration activities just as massively as before, which makes itself felt in the bookings and order backlog situation at SBO. Bookings in the first half of 2006 amounted to MEUR 160.6, again 55% up over the already excellent figure of MEUR 103.9 achieved in the first six months of 2005, and were equally distributed over all product groups. The order backlog in the first half of 2006 climbed to a new record level of MEUR 179.1 (following MEUR 61.7 as per June 30, 2005 and MEUR 134.0 at the turn of the year 2005/06).

In order to work off this high order backlog, the headcount was upsized by around 18% over the previous year and now is precisely 1,000 employees; also, increasing overtime was worked and additional shifts were introduced.

SBO expects the favourable business development to continue over the full year of 2006, provided that the cyclical demand for oil and gas remains high and the dollar is not substantially weakened over the euro.

Comparison of key figures in MEUR
 

	1-6/2006	1-6/2005
Sales revenues	114,9	79,1
EBIT	22,2	11,4
EBIT margin (%)	19,3	14,4
Profit before tax	21,4	10,6
Net income	15,4	7,5
EPS*	0,96	0,52
Headcount**	1.000	848

* Based on average shares outstanding
**Reporting date June 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 1,000 (December 31, 2005: 913), currently 252 at Ternitz, Lower Austria, and 534 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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