Schoeller-Bleckmann Oilfield Equipment AG
euro adhoc: Schoeller-Bleckmann Oilfield Equipment AG
quarterly or semiannual
financial statement
Schoeller-Bleckmann Oilfield Equipment AG: Sales and
profit 1-9/2007 again substantially improved - Last-year record profit exceeded
already after ...
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
9-month report
21.11.2007
Schoeller-Bleckmann Oilfield Equipment AG: Sales and profit 1-9/2007 again substantially improved - Last-year record profit exceeded already after first nine months of 2007 - Capital expenditures drive further growth - Market environment remains positive
Ternitz, 21 November 2007. Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the Vienna Stock Exchange, utilised the positive overall conditions in the oilfield service market for further corporate growth and substantial profit improvement. Group sales in the first nine months of 2007 went up 32.3 % year-on-year to MEUR 233.6 (following MEUR 176.6), once again an excellent result. This growth in sales was due to the continuous expansion of production capacities and stronger pricing.
The nine-month EBIT was improved even more than the sales volume, in fact 56.5 % to currently MEUR 55.0 (previous year: MEUR 35.1). Accordingly, the EBIT margin in the first nine months of 2007 climbed to a new and absolute best-ever level of 23.5 % (previous year: 19.9 %). Profit before tax went up 55.6 % to MEUR 52.7 in the first nine months of 2007 (previous year: MEUR 33.9), exceeding the top result achieved in full 2006 already in that period. Net income for 1-9/2007 stood at MEUR 37.7, up 53.7 % from MEUR 24.5 year-on-year. Earnings per share in the first nine months of 2007 were EUR 2.35, following EUR 1.53 in the same period of 2006, an increase of 53.7 %.
The strong demand was reflected in the continued high level of bookings worth MEUR 103.9 for the third quarter of 2007 (third quarter of 2006: MEUR 102.1), concerning all segments and regions alike. Accumulated bookings in the first nine months of 2007 arrived at a new record figure of MEUR 266.3, following MEUR 262.8 year-on-year. Order backlog as at 30 September 2007 stood at MEUR 260.3 (previous year: MEUR 218.3). The order horizon reaches well into 2008.
Despite of the tight worldwide situation in the supply of skilled labour in the oilfield service industry, SBO´s headcount grew from 1051 as at 30 September 2006 to currently 1215. The future growth of SBO will largely depend on the availability of skilled labour.
Capital expenditures to drive further growth Schoeller-Bleckmann continued its strategic investment programme launched two years ago and currently amounting to MEUR 150 as planned. In the first three quarters of 2007, aggregate additions to fixed assets accounted for MEUR 50.2, of which MEUR 15.4 were spent in the third quarter of 2007. Capital expenditures were used primarily for expanding the Ternitz production site, where a new production facility for long-term contracts with several key customers is being built. The plant is scheduled to go onstream in the first quarter of 2008.
Outlook Provided that the global economy continues to develop positively, the strong demand for crude oil will be sustained throughout the fourth quarter of 2007 and beyond. As a result, it is safe to assume that the market conditions for the oilfield service industry will remain favourable in the next quarters.
SBO utilises these positive overall conditions to further accelerate its growth strategy for manufacturing high-precision components. The focus there is both on continuous capacity expansions at the production sites and ongoing innovation of SBO products and completion of the new plant in Ternitz. However, due to the boom situation in the industry, steel mills have been expanding their capacities as well, driving competition in offering non-magnetic steels to third parties.
For fiscal 2007, Schoeller-Bleckmann therefore expects the positive market environment to continue, even if factors such as the USD/EUR exchange rate and development of raw material prices will have an impact on business development. As the record profit generated in full 2006 was already considerably exceeded in the first nine months of 2007, another record year is anticipated for 2007. Also for 2008, Schoeller-Bleckmann sees the prerequisites of continuing the excellent business development fulfilled.
Comparison of key figures in MEUR
1-9/2007 1-9/2006 Change in % Sales revenue 233.6 176.6 32.3 EBIT 55.0 35.1 56.5 EBIT-margin (%) 23.5 19.9 - Profit before tax 52.7 33.9 55.6 Net income 37.7 24.5 53.7 EPS in EUR * 2.35 1.53 53.7 Headcount ** 1215 1051 15.6
* based on average shares outstanding ** reporting date 30 September
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 1215 (31 December 2006: 1086), thereof 375 at Ternitz/Austria and 606 in North America (including Mexico).
end of announcement euro adhoc 21.11.2007 07:50:00
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 ext 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