Schoeller-Bleckmann Oilfield Equipment AG: Record EBIT margin 18% - 100% profit before tax increase to MEUR 9.0 in the first quarter of 2006 – order backlog of MEUR 160.8 exceeds record level of 2005

Ternitz, May 24, 2006. Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the prime market ATX of the Vienna Stock Exchange, carried forward and accelerated its course of success in 2005 into the first quarter of 2006. Sales revenues rose by 45% to MEUR 52.6 in the first quarter of 2006, following MEUR 36.2 in the first three months of 2005. Profit before tax doubled in the first three months of 2006 from MEUR 4.5 in the same period of 2005 to MEUR 9.0. This development is mainly due to productivity and price increases. Price increases of raw materials could be overcompensated. The EBIT margin rose to around 18% in the first quarter of 2006 (following 14% in the first quarter of 2005), marking a new record value for SBO.

At the same time, Schoeller-Bleckmann posted all-time highs for bookings and order backlog. With an increase of 49%, bookings amounting to MEUR 77.1 in the first quarter of 2006 exceeded the already excellent figure of MEUR 51.6 achieved in the first three months of 2005 and were registered for all product groups evenly. Despite of the strong increase in sales revenues, the order backlog further rose to MEUR 160.8 (following MEUR 134.0 as per December 31, 2005).

As a result of the growing demand for oil and gas, investments of the international oil companies in exploration and production remained high. "The time horizon of our order backlog extends into 2007, some customers of SBO have already started their preliminary planning for 2008", said Gerald Grohmann, Chief Executive Officer of Schoeller-Bleckmann Oilfield Equipment AG. "Our strategic investment and capacity expansion programme launched already in fiscal 2005 was further implemented. The manufacturing equipment is continuously extended at all sites, with a focus on Ternitz and Houston. In total, CAPEX worth approximately MEUR 50 have been released under this programme so far. Also, the headcount was increased by 17% to 964 employees", added Mr Grohmann.

Sustained attractive market environment
The challenge for the next months will be to speedily implement the capacity expansion programme and to further increase human resources. This will lay the foundations for a continuously positive business development in the following quarters, although the recent unfavourable development of the dollar-euro exchange rate will remain a burden on SBO. On the whole, Schoeller-Bleckmann expects a continuously friendly market environment.

Comparison of key figures in MEUR