Schoeller-Bleckmann Oilfield Equipment AG
euro adhoc: Schoeller-Bleckmann Oilfield Equipment AG: New Record Sales Revenue and Profit before Tax in the First Half of 2007 - 24.2 % EBIT Margin in the Second Quarter - Continuing Boom in the Oilfield Service Industry
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23.08.2007
Schoeller-Bleckmann Oilfield Equipment AG: New Record Sales Revenue and Profit before Tax in the First Half of 2007 - 24.2 % EBIT Margin in the Second Quarter - Strategic Investment Programme according to Plan - Continuing Boom in the Oilfield Service Industry
Ternitz, 23 August 2007. Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the prime market of the Vienna Stock Exchange, fully benefited from the sustained boom in the oilfield service market in the first half of 2007. Group sales generated in the first half of 2007 grew by 31.2 % to MEUR 150.8 (1-6/2006: MEUR 114.9). This rise is mainly due to the production capacities commissioned in the past months under the strategic investment programme.
The bottomline also markedly improved. EBIT climbed 59.3 % to MEUR 35.3 in the first six months of 2007 (1-6/2006: MEUR 22.2). Profit before tax in the first half of 2007 rose by 59.1 % to a total of MEUR 33.9, following MEUR 21.3 year-on-year. Net income in the first six months of 2007 grew 59.1 % to MEUR 24.5 (1-6/2006: MEUR 15.4). The EBIT margin was improved from an already excellent 19.3 % in the first half of 2006 to 23.4 % in the first six months of 2007. At 24.2 %, the EBIT margin in the second quarter of 2007 climbed to a new quarterly record (4-6/2006: 20.5 %).
The order backlog worth MEUR 243.3 as at 30 June 2007 (30 June 2006: MEUR 179.1) again reached a peak, exceeding the level as at 31 December 2006. Bookings, as expected, were slightly lower in the first quarter of 2007, but significantly improved to MEUR 95.0 in the second quarter of 2007 (4-6/2006: MEUR 83.6). Accumulated bookings in the first half of 2007 totalled MEUR 162.4 (1-6/2006: MEUR 160.7).
The headcount was further increased to 1175 by the end of the second quarter of 2007, following 1086 as at 31 December 2006 and 1000 in the second quarter of 2006. Most of the new recruits were hired at Ternitz.
Capital expenditures implemented according to plan The strategic investment programme started in 2005 and currently worth around MEUR 150 has taken full effect. Following completion of the new forge at Ternitz, which contributes substantially to the increased production output of the site, the capex focus now is on building a new production plant in close cooperation with some key customers. As construction progress is as planned, it is safe to assume today that the plant will go onstream in the first quarter of 2008. Other major capex projects were capacity expansions at the North American and Mexican sites, mainly aimed at increasing production capacity.
Outlook The strong demand for oil will continue over the second half of 2007, provided that the global economic development remains unchanged. As for the oilfield service industry and SBO, this means sustained stability of the overall economic environment throughout the second half of 2007. SBO expects the excellent business development to continue throughout full 2007. Both the high order backlog and booking level are the basis of a robust development in the second half of 2007. Only further deterioration of the USD/EUR exchange rate could have a negative effect on the earnings situation, but chances are very likely that the record result of the previous year may once again be surpassed in 2007.
Comparison of key figures in MEUR
1-6/2007 1-6/2006 Change in % Sales revenue 150.8 114.9 31.2 EBIT 35.3 22.2 59.3 EBIT margin (%) 23.4 19.3 - Profit before tax 33.9 21.3 59.1 Net income 24.5 15.4 59.1 EPS in EUR * 1.53 0.96 59.4 Headcount ** 1175 1000 17.5
* based on average shares outstanding ** reporting date 30 June.
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 1175 (31 December 2006: 1086), 350 at Ternitz/Austria and 607 in North America (including Mexico).
end of announcement euro adhoc 23.08.2007 07:30:00
Further inquiry note:
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
Mick Stempel, Hochegger|Financials,
Tel: +43 1/504 69 87 DW 85,
e-mail: m.stempel@hochegger.com
Branche: Oil & Gas - Upstream activities
ISIN: AT0000946652
WKN: 907391
Index: WBI, ATX Prime
Börsen: Wiener Börse AG / official dealing