Schoeller-Bleckmann Oilfield Equipment AG
euro adhoc: Schoeller-Bleckmann Oilfield Equipment AG
Quarterly or
Semiannual Financial Statements
Schoeller-Bleckmann Oilfield
Equipment AG: Restrained business development over first half of 2003
Share in Knust-SBO increased to 100 % - new manufac
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Ternitz - August 29, 2003. Schoeller-Bleckmann Oilfield Equipment AG, listed on the prime market of the Vienna Stock Exchange, looks back on a restrained first half of 2003 with volatile currency parities and continuously curbed demand within the industry. In the first half of 2003, SBO generated group sales of EUR 73.89 mill. (following EUR 95.49 mill.). The mid-year EBIT was EUR 8.13 mill. (following EUR 14.30 mill. last year). The EBIT margin was 11.0 % compared with 14.9 % in the first half of 2002.
The decline in sales and profit was due to the weak dollar and the lower number of bookings in Q1, which impacted business development in Q2. "Currently, oilfield service companies are running down their inventories of oilfield equipment items and pursue a restrictive investment policy to cut their cost", explained CEO Gerald Grohmann.
Sales generated in Q2 of 2003 amounted to EUR 34.58 mill. (following EUR 45.82 mill.), the quarterly result before taxes to EUR 2.53 mill. (following EUR 4.13 mill.). Although SBO was able to maintain its market position the result was not satisfying due to the weakness of the dollar. "However, based on the currency relations of Q2/02 the result would have been around EUR 4.5 mill., thus topping last years performance", said Mr. Grohmann.
The current weakness of the US dollar is now increasingly used for investments in the dollar region. This is why SBO will raise its share in the most profitable group subsidiary Knust -SBO Ltd.,Texas from 75 % to 100 %. Furthermore, SBO will launch a manufacturing cooperation scheme with a Mexican company. Despite of those activities and a flexible use of capacities in the existing production sites, sales and results will presumably be lower in 2003 than in 2002.
Rise of rig count as a first sign of recovery
The around 9.5 % rise of the rig count, the most significant indicator of drilling activities, from a global 1,957 by the end of 2002 to 2,144 by mid-year of 2003 will reduce stocks of equipment items for the oilfield service industry and make replenishments inevitable. As a consequence, demand should pick up from 2004 on if the US economy will experience a noticeable recovery.
Comparison of key figures in MEUR
~
First half 2003 First half 2002
Sales 73,89 95,49
EBIT 8,13 14,30
EBIT margin (%) 11,0 14,9
Profit before tax 7,14 10,71
Consolidated group result 3,89 6,41
Headcount 833 883
~Schoeller-Bleckmann Oilfield Equipment AG is the global market leader for high-precision components for the oilfield service industry. The business focus is on non-magnetic drill string components for directional drilling. Worldwide, the company employs a workforce of 833 (end of 2002: 852), currently 216 in the company headquarters at Ternitz, Lower Austria, and 307in Houston, Texas. The majority shareholder of the company is Berndorf AG (approx. 64%).
For information please contact: Gerald Grohmann, Chief Executive Officer Schoeller-Bleckmann Oilfield Equipment AG A-2630 Ternitz, Hauptstraße 2 Tel: +43 2630/315 ext. 110, Fax: ext. 101 E-Mail: sboe@sbo.co.at
end of announcement euro adhoc 29.08.2003
Further inquiry note:
Mick Stempel
Tel.: 01/5046987-85
mailto:m.stempel@hochegger.com
Branche: Oil & Gas - Upstream activities
ISIN: AT0000946652
WKN: 94665
Index: ATX Prime, WBI
Börsen: Wiener Börse AG / official dealing