SBO: Strong development in the first quarter of 2022
· Order intake more than doubled to MEUR 129, sales increased by around 70 %,
EBIT quadrupled to MEUR 15.5
EBIT quadrupled to MEUR 15.5
· Profit after tax increases to MEUR 11.4, compared to MEUR 1 in Q1 2021
Ternitz, May 19, 2022. Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (SBO), which is listed on the ATX leading index of the Vienna Stock Exchange, recorded a clearly positive development in the first quarter of 2022. The upward trend of 2021 gained further momentum in the first three months of 2022. The strong market situation was reflected both in North America and international markets. Bookings more than doubled from the first quarter of the previous year, rising to MEUR 129.1. SBO’s sales in the first three months of the year went up by around 70 % to MEUR 100.5. EBIT more than quadrupled to MEUR 15.5, and profit after tax of MEUR 11.4 increased more than tenfold year-on-year. Net liquidity came to MEUR 12.3 and gearing improved to minus 3.4 %. The book-to-bill ratio, which compares the number of orders received with sales and serves as an indicator of medium-term development, remained clearly above 1 and underlines the positive expectations.
CEO Gerald Grohmann: “The war in Ukraine has a massive impact on energy markets worldwide. It has triggered increased spending for exploration and production in many regions in order to ensure supply with oil and gas. This is reflected in our business, which benefited from a dynamic increase in demand. At the same time, the expansion of renewable energy sources is receiving a strong boost from the current situation. This is where we want to make our contribution and, as announced, we have launched initial market explorations to build a new business segment in line with our Strategy 2030”
In March 2022, SBO presented its “Strategy 2030”, which provides for building a new segment in the fields of energy transition and green tech industries. At the same time, the company maintains its core business in order to continue contributing to secure energy supply, with ESG criteria being firmly entrenched in the Group’s strategy. Moreover, SBO is continuously working on the structural improvement of its energy efficiency and reduction of CO2 emissions.
Strong order situation and substantial earnings growth
Bookings went up sharply, amounting to MEUR 129.1 in the first three months of 2022, an increase of 115.2 % (1-3/2021: MEUR 60.0). Sales also rose steeply to MEUR 100.5 (1-3/2021: MEUR 59.3). The order backlog increased to MEUR 144.2 at the end of March (31 December 2021: MEUR 111.7).
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to MEUR 23.5 in the first quarter of 2022, following MEUR 11.6 in the first quarter of 2021. The EBITDA margin came to 23.4 % (1-3/2021: 19.5 %). Profit from operations (EBIT) arrived at MEUR 15.5, more than four times the level achieved year-on-year (1-3/2021: MEUR 3.6). Profit before tax generated by SBO came to MEUR 14.3 (1-3/2021: MEUR 2.4), and profit after tax was MEUR 11.4 (1-3/2021: MEUR 1.0). Earnings per share in the first quarter of 2022 went to EUR 0.72 (1-3/2021: EUR 0.06).
“Ensuring energy supply is and remains a major issue. To ensure it, exploration projects for oil and gas are driven forward worldwide, which is also reflected in demand for our products. Accordingly, our business developed positively in the first quarter across all markets and in both segments”, comments SBO's CEO Gerald Grohmann.
SBO's business is divided into two segments, Advanced Manufacturing & Services (AMS) and Oilfield Equipment (OE). Sales of the AMS segment increased in the first quarter to MEUR 49.1 (1-3/2021: MEUR 29.8), profit from operations (EBIT) increased to a profit of MEUR 8.0, following a loss of MEUR 0.4 in the previous year. Sales in the OE segment increased to MEUR 51.4 (1-3/2021: MEUR 29.5), and EBIT more than tripled to MEUR 7.6 (1-3/2021: MEUR 2.3).
In the first quarter of 2022, SBO’s equity increased to MEUR 360.5 (31 December 2021: MEUR 340.9). SBO’s equity ratio went up to 42.9 % (31 December 2021: 42.3 %). Net liquidity came to MEUR 12.3 (31 December 2021: MEUR 9.9). Gearing improved slightly to minus 3.4 % (31 December 2021: minus 2.9 %). Liquid funds stood at MEUR 293.2 (31 December 2021: MEUR 291.8). Cashflow from operating activities arrived at MEUR 3.8 in the first three months of 2022 (1-3/2021: MEUR 5.2). Capital expenditure in property, plant and equipment and intangible assets (CAPEX) came to MEUR 5.0 (1- 3/2021: MEUR 4.3).
With tailwind into the further year 2022
The International Monetary Fund (IMF) expects global economic growth to come to 3.6 % in 2022, following a significant increase of 6.1 % in the previous year, with developed industrialized countries set to grow by 3.3 % and emerging markets by 3.8 %. The forecasts have recently been revised slightly downward due to the war between Russia and Ukraine and the associated uncertainties. From the underinvestments in exploration and production of oil and gas in past years and the increasing demand for these resources, a rising catch-up effect is expected to emerge, which has already been evident since the second half of 2021. To mitigate the impact of Russia's war against Ukraine on the markets, OPEC+ intends to expand production. Overall, global exploration and production spending should increase by at least 16 % in 2022, with 21 % in North America and 15 % internationally.
The developments and effects of the Russia-Ukraine war on the global economy remain difficult to assess. However, it is already becoming apparent that higher investments will be required worldwide in the various regions outside Russia in order to secure the global supply of energy. Accordingly, oil and gas production in regions outside Russia is expected to rise continuously. Crude oil production in the United States has already returned to pre-crisis levels, mainly from the depletion of wells drilled but not yet completed. Delays in supply chains and tighter sanctions may weaken global economic growth. Overall, the expected positive effects on the oil and gas markets should outweigh these and lead to a further revival of activities in the oilfield service industry – and thus also at SBO.
“We had a strong start into the year and expect the momentum in our markets to continue. Of course, uncertainties remain in this environment with regard to the war, sanctions and supply chain bottlenecks. All in all, the positive effects of rising demand on our business should prevail”, concludes CEO Gerald Grohmann.
SBO's key performance indicators at a glance
|
|
UNIT
|
1-3/2022
|
1-3/2021
|
|
Sales
|
MEUR
|
100.5
|
59.3
|
|
Earnings before interest, taxes, depreciation and amortization (EBITDA)
|
MEUR
|
23.5
|
11.6
|
|
EBITDA margin
|
%
|
23.4
|
19.5
|
|
Profits from operations (EBIT)
|
MEUR
|
15.5
|
3.6
|
|
EBIT margin
|
%
|
15.4
|
6.0
|
|
Profit before tax
|
MEUR
|
14.3
|
2.4
|
|
Profit after tax
|
MEUR
|
11.4
|
1.0
|
|
Earnings per share
|
EUR
|
0.72
|
0.06
|
|
Cashflow from operating activities
|
MEUR
|
3.8
|
5.2
|
|
Liquid funds as of 31 March 2022 / 31 December 2021
|
MEUR
|
293.2
|
291.8
|
|
Net liquidity as of 31 March 2022 / 31 December 2021
|
MEUR
|
12.3
|
9.9
|
|
Employees 31 March 2022 /
31 December 2021 |
|
1,375
|
1,267
|
SCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesellschaft (SBO) is the global market leader in the production of high-precision components made of non-magnetic, high-alloy stainless steels. The Group is equally recognized worldwide for its high-efficiency drilling tools and equipment for the oil and gas industry. The Group employs a workforce of almost 1,400 worldwide and is successfully positioned in technologically demanding, profitable niches. Information on the “Quality First”-based growth strategy and sustainable management (ESG) is available in the annual report at https://www.sbo.at/publikationen.
Contact:
Andreas Böcskör, Group Communications
Schoeller-Bleckmann Oilfield Equipment AG
Tel: +43 2630 315 DW 252, Fax: DW 101
E-Mail: a.boecskoer@sbo.co.at
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