Schoeller-Bleckmann Oilfield Equipment AG
EANS-Adhoc: Schoeller-Bleckmann Oilfield Equipment AG
First quarter of 2013
marked by cautious customer spending policy - Market environment remains intact
--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------
Financial Figures/Balance Sheet/quarterly report
23.05.2013
Ternitz/Vienna, 23 May 2013. For Schoeller-Bleckmann Oilfield Equipment AG
(SBO), listed on the ATX market of the Vienna Stock Exchange, the first quarter
of 2013 was marked by customers' cautious spending policy which started to
become apparent already in the second half of 2012. Compared to the first
quarter of 2012 sales went down moderately by 4.0 %, from MEUR 120.6 to MEUR
115.8. Earnings before interest and taxes (EBIT) fell to MEUR 23.2 (following
MEUR 28.1 in the first quarter of 2012), representing an EBIT margin of 20.0 %
(following 23.3 %). Profit before tax decreased from MEUR 25.8 to MEUR 20.5,
profit after tax from MEUR 17.8 to MEUR 14.2. Quarterly earnings per share stood
at EUR 0.88 (following EUR 1.11 in the first quarter of 2012).
The decrease in earnings was due to reduced capacity utilisation compared to
last year, associated lower economies of scale and selective price adjustments
for individual products.
"Given the continuous growth in oil and gas demand and the sustained high oil
price our market environment remains intact. However, our customers' assessment
of the market situation was too optimistic last year, resulting in overordering
of tools for the oilfield service industry in the first half of 2012. For
optimising their inventories, companies have now cut on their spending volumes
and preferred to invest in repairing tools rather than buying new equipment,"
says Gerald Grohmann, CEO of SBO, commenting on recent business development. The
product group most affected was high-precision components. The product group of
downhole tools, oilfield supplies and service continued to develop positively
despite declining drilling activity in North America.
Customers' current spending policy was reflected in the bookings received in the
first quarter, which, compared to the extraordinarily strong result in Q1 2012
of MEUR 129.2 contracted to MEUR 93.3, but represented a slight improvement from
Q4 2012.
Capital expenditure in property, plant and equipment in the first quarter of
2013 amounted to MEUR 9.1 (following MEUR 9.8 in the first quarter of 2012). At
the Ternitz site a new machining centre for non-magnetic oilfield service
drillstring components worth MEUR 54 million is under construction at the
moment. Installation of the first machines is scheduled for the end of
2013/beginning of 2014. Another spending focus was on expanding the drilling
motor and circulation tools rental fleet.
Outlook
For 2013, the IEA projects average global demand for oil to come to 90.6 million
barrels per day, representing an increase of 0.9 % from last year. This
provides the basis of stable development in the oilfield service industry.
Drilling activity remains at a high level globally. At the moment there are no
indications that the high spending volumes in oil and gas exploration and
production expected for 2013 should be curtailed.
As a result, SBO's customers are expected to further reduce their inventories of
high-precision components gradually in the months ahead. If drilling activity
continues this should increase the number of new orders coming in. However, it
cannot be predicted how fast inventories will actually be reduced.
Owing to its extreme flexibility SBO is perfectly prepared to meet all
scenarios. With its ongoing capital investment programme, SBO has prepared the
ground for the further dynamic growth in demand that is expected to set in over
the medium term. The company's sound balance-sheet structure combined with low
debt and sustained high cash-flow confirm the long-term positive growth
perspectives of SBO.
Comparison of key financial figures
1-3/2013 1-3/2012 Change
Sales in MEUR 115.8 120.6 - 4.0 %
EBIT in MEUR 23.2 28.1 - 17.6 %
EBIT margin in % 20.0 23.3 -
Profit before tax in MEUR 20.5 25.8 - 20.3 %
Profit after tax in MEUR 14.2 17.8 - 20.3 %
EPS * in EUR 0.88 1.11 - 21.0 %
Headcount ** in numbers 1569 1506 + 4.2 %
* based on average number of shares outstanding
** reporting date 31 March
end of ad-hoc-announcement
================================================================================
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 has employed a workforce of 1569 as at 31 March 2013 (31 December 2012:
1591), thereof 454in Ternitz/Austria and 616 in North America (including
Mexico).
Further inquiry note:
MMag Florian Schütz, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz/Austria, Hauptstrasse 2
Tel.: +43 2630 315-251
Fax: +43 2630 315-501
E-Mail: f.schuetz@sbo.co.at
end of announcement euro adhoc
--------------------------------------------------------------------------------
issuer: Schoeller-Bleckmann Oilfield Equipment AG
Hauptstrasse 2
A-2630 Ternitz
phone: 02630/315110
FAX: 02630/315101
mail: sboe@sbo.co.at
WWW: http://www.sbo.at
sector: Oil & Gas - Upstream activities
ISIN: AT0000946652
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien
language: English