NEWS
SBO with strong sales and earnings growth in the first three quarters of 2023
· Sales grew by 21 % to MEUR 437.2, EBIT rose to MEUR 82.0
· Adjusted EBIT increased by 53 % compared to the previous year
· Operating cashflow significantly improved to MEUR 61.2
· Dividend planned at the level of the previous financial year
Ternitz, 22 November 2023. Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed in the leading index ATX of the Vienna Stock Exchange, achieved strong 9-month results for 2023. Despite a continued softening of the US market in Q3, overall market conditions remained favorable. Sales increased by 21 % year-on-year to MEUR 437.2, and the operating result (EBIT) improved by 13 % to MEUR 82.0. Adjusted for foreign exchange losses, EBIT increased by 53 % to MEUR 86.3, and the adjusted EBIT margin reached 19.7 %. Profit before tax came in at MEUR 74.1 and operating cashflow was strong at MEUR 61.2. The acquisition of Praxis Completion Technology was completed in October for a final price of MUSD 27.4.
“We have continued to deliver encouraging sales and earnings growth this year, thanks to our global position and a thriving international business. With the acquisition of Praxis, we are further strengthening our leading position and increasing our footprint in the Middle East, a market of critical importance to our business going forward. In addition, Praxis is already recording initial successes in the promising area of carbon capture and storage. This represents a strategically important step for SBO in the direction of climate protection technologies”, says SBO CEO Gerald Grohmann.
Continued strong growth in sales and profit
Following an excellent year 2022, SBO continued its growth course in the first nine months of 2023. At MEUR 427.0, bookings were on a similar level to the very strong prior-year period (1-9/2022: MEUR 431.1). Sales increased by a substantial 21.0 % to MEUR 437.2 (1-9/2022: MEUR 361.3), primarily driven by continued strong growth of the international business. The Group’s order backlog of MEUR 245.2 remains strong at the end of September (30 September 2022: MEUR 189.5) and provides significant visibility well into 2024.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to MEUR 103.0 (1-9/2022: MEUR 96.8) in the first nine months of 2023, the EBITDA margin reached 23.6 % (1-9/2022: 26.8 %). Profit from operations (EBIT) grew by 12.9 % to MEUR 82.0 (1-9/2022: MEUR 72.6) or 18.7 % of sales (EBIT margin 1-9/2022: 20.1 %). EBIT adjusted for exchange losses of MEUR 4.4 (1-9/2022: exchange gains of MEUR 16.3) came to MEUR 86.3 (1-9/2022: EBIT MEUR 56.3), resulting in a strongly improved adjusted EBIT margin of 19.7 % (1-9/2022: 15.6 %).
SBO's profit before tax increased by 6.0 % to MEUR 74.1 (1-9/2022: MEUR 69.9). Profit after tax came in at MEUR 55.8 (1-9/2022: MEUR 55.3). Earnings per share in the first nine months of 2023 stood at EUR 3.54 (1-9/2022: EUR 3.52).
Segment performance reflects thriving international business
The SBO Group's business is divided into two segments: The AMS segment showed an outstanding development during the year - with a record performance in Q3 - and grew sales by 37.6 % to MEUR 250.2, (1-9/2022: MEUR 181.8). With an increase of 68.2 %, EBIT improved even more profoundly to MEUR 57.5 (1-9/2022: MEUR 34.2). In the OE segment, three-quarter sales of MEUR 187.0 were higher than in the previous year (1-9/2022: MEUR 179.4). EBIT reached MEUR 26.8 (1-9/2022: MEUR 32.9).
“Overall, we have delivered excellent results in the past nine months. The international business continues to thrive, which is clearly reflected in the outstanding performance of our AMS segment. The OE segment has faced some headwinds in a slower US market, but we are confident in a rebound in the coming months. If the positive development continues, we plan to pay a dividend for 2023 at the level of the previous financial year”, says CEO Grohmann.
Substantially improved cashflow and solid balance sheet
Cashflow from operating activities significantly improved to MEUR 61.2 in the first nine months of 2023 (1-9/2022: MEUR 24.1). Free cashflow came in at MEUR 17.2, (1-9/2022: MEUR 6.2), despite the payment of MEUR 18.8 for the acquisition of Praxis Completion Technology. Capital expenditures on property, plant and equipment and intangible assets (excluding right of use assets) amounted to MEUR 27.0 (1-9/2022: MEUR 21.4).
In the first nine months of 2023, SBO's equity increased to MEUR 453.4 (31 December 2022: MEUR 425.0). The equity ratio improved slightly to 47.3 % (31 December 2022: 47.1 %). Net liquidity remained high at MEUR 18.7 (31 December 2022: MEUR 34.5) despite the dividend payment of MEUR 31.5 in Q2 2023 (dividend Q2 2022: MEUR 11.8) and the payment for the Praxis acquisition of MEUR 18.8 in Q3. Gearing stood at minus 4.1 % (31 December 2022: minus 8.1 %). Liquid funds amounted to MEUR 268.6 (31 December 2022: MEUR 287.8).
Positive outlook
The oilfield service industry is currently benefiting from a prolonged growth phase that has shifted its focus towards international and offshore markets. Investments in upstream activities are gaining momentum as operators commit resources to long-term projects, expand production capacity, conduct exploration, and increase gas production. SBO remains optimistic about the oil and gas sector and is confident that the underlying fundamentals will support a sustained, multi-year increase in global upstream investment.
At the same time, SBO is driving initiatives aimed at growing its New Energy segment as part of Strategy 2030, to drive the development of future energy solutions. In line with this vision, SBO is actively pursuing potential acquisition targets and strategic investments, with a specific focus on hydrogen and hydrogen derivatives.
“We are having an outstanding year and are confident about the future thanks to solid market fundamentals and our strong business performance. Looking ahead, although we remain vigilant about geopolitical developments, we believe this cycle will outlast previous ones in its strength and duration. Our backlog remains high and provides strong visibility for 2024. In executing on our Strategy 2030, we are narrowing down our search for acquisition targets to expand our business beyond oil and gas”, says CEO Grohmann.
SBO’s Key Performance Indicators at a glance
|
|
|
1-9/2023
|
1-9/2022
|
|
Sales
|
MEUR
|
437.2
|
361.3
|
|
Adj. EBITDA
(Earnings before interest, taxes, depreciation, and amortization adjusted for exchange gains and losses) |
MEUR
|
107.4
|
80.6
|
|
Adj. EBITDA margin
|
%
|
24.6
|
22.3
|
|
EBITDA
(Earnings before interest, taxes, depreciation, and amortization) |
MEUR
|
103.0
|
96.8
|
|
EBITDA margin
|
%
|
23.6
|
26.8
|
|
Adj. EBIT
(Earnings before interest and taxes adjusted for exchange gains and losses)
|
MEUR
|
86.3
|
56.3
|
|
Adj. EBIT margin
|
%
|
19.7
|
15.6
|
|
EBIT
(Earnings before interest and taxes) |
MEUR
|
82.0
|
72.6
|
|
EBIT margin
|
%
|
18.7
|
20.1
|
|
Profit before tax
|
MEUR
|
74.1
|
69.9
|
|
Profit after tax
|
MEUR
|
55.8
|
55.3
|
|
Earnings per share
|
EUR
|
3.54
|
3.52
|
|
Cashflow from operating activities
|
MEUR
|
61.2
|
24.1
|
|
Free Cashflow
|
MEUR
|
17.2
|
6.2
|
|
Liquid funds
as of 30 September 2023 / 31 December 2022
|
MEUR
|
268.6
|
287.8
|
|
Net liquidity
as of 30 September 2023 / 31 December 2022 |
MEUR
|
18.7
|
34.5
|
|
Headcount
as of 30 September 2023 / 31 December 2022 |
|
1,568
|
1,484
|
SCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesellschaft (SBO) is a globally operating group of companies and world market leader in the manufacture of high-alloy, non-magnetic steels. The SBO Group is engaged in high-precision production of special components for the oil, gas and other industries by applying innovative and additive manufacturing technologies. The SBO Group is equally recognized worldwide for its directional drilling tools and equipment for well completion in the oil, gas, and geothermal industry. With its subsidiaries and more than 1,500 employees worldwide, the Group is successfully positioned in technologically demanding, profitable niches. The Group is headquartered in Ternitz, Austria. Making an active contribution to energy transition is a key element of the Group's Strategy 2030. More detailed information on the Strategy 2030 and sustainable management (ESG) is available in the Annual Report 2022 at https://www.sbo.at/publikationen.
Contact:
Monika Bell
Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
Tel: +43 2630 315-253
E-Mail: m.bell@sbo.co.at
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