Schoeller-Bleckmann Oilfield Equipment AG
EANS-News: Schoeller-Bleckmann Oilfield Equipment AG
Sound development during
the first nine months of 2014 - stable results with high profitability - growing
bookings - increased earnings per share
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9-month report
Ternitz/Vienna, 19 November 2014. The business of Schoeller-Bleckmann Oilfield
Equipment AG (SBO) showed a sound development for the third quarter of 2014,
continuing the positive trend of the first two quarters. Increasing bookings has
led to results for the first nine months of 2014 exceeding last year's figures.
SBO's revenues during the first nine months rose by 2.3%, to MEUR 356.6
(1-9/2013: MEUR 348.5). EBITDA (earnings before interest, taxes, depreciation
and amortization) increased by 2.1% to MEUR 102.9 (1-9/2013: MEUR 100.8), EBIT
(earnings before interest and taxes) in 2014 was MEUR 72.0, or 9.5% up from the
previous year (1-9/2013: MEUR 65.8 after non-recurring items). Profit before tax
were at MEUR 64.5 (1-9/2013: MEUR 60.8), a 6.1% plus in a year-on-year
comparison, while profit after tax rose by 11.4% to MEUR 46.8 (1-9/2013: MEUR
42.0). Earnings per share were EUR 2.93 (1-9/2013: EUR 2.60) after the first
nine months.
Margins also had a positive development in the year-on-year comparison: While
the EBITDA margin remained at last year's level of 28.9%, the EBIT margin
improved slightly to 20.2% (1-9/2013: 18.9% after non-recurring items), and the
pre-tax margin also showed a moderate plus at 18.1% (1-9/2013: 17.5%). In the
first nine months of 2014, SBO managed to increase its bookings by 11.7% to MEUR
369.4 (1-9/2013: MEUR 330.8). Total order backlog as of 30 September 2014 was
MEUR 123.6 (30 Sept. 2013: MEUR 127.8), with a significant portion thereof
reaching into the year 2015.
SBO Chairman of the Board, Gerald Grohmann, points out: "As already expected at
the beginning of the year, our development in the first nine months of 2014 has
been absolutely sound with increased bookings and high profitability. However,
the environment of the oilfield service industry has become more volatile in the
last few months. So far, declining oil prices have no impact on drilling
activities. Yet, the market lacks confidence with a future development difficult
to foresee, a fact which has our full attention."
SBO's investments in plant, property and equipment amounted to MEUR 31.3
(1-9/2013: MEUR 46.4) during the first nine months of 2014, with a focus on the
further expansion of our drilling motor fleet in the U.S. and Canada, and the
DSI circulation tools fleet.
SBO plans to raise profitability in England by exploiting potential cost
synergies between its two subsidiaries "Techman Engineering Ltd." and the
close-by "Darron Tool & Engineering Ltd." Furthermore, fixed costs can be cut by
optimizing processes and eliminating duplication of work. An improved cost
structure should allow for an expansion of business in the future. SBO expects
relevant costs for the required measures in the amount of up to MEUR 5.0, which
will be reflected in the 2014 annual income.
Outlook
The global market is currently well supplied with oil. The weakened
macro-economic development and slackening demand have prompted the International
Energy Agency (IEA) to slightly revise down its oil consumption forecast for
2014, from 92.6 mb/d to 92.4 mb/d.
The environment of the oilfield service industry has become significantly more
volatile during the past few months. The political instability in Ukraine and
the Middle East, weakening global economic growth paired with significantly
lower oil prices due to slackening demand on the one hand, as well as sufficient
supplies on the other, might affect the business environment of the oilfield
service industry. Regardless of any short-term market developments, SBO is in
the position to quickly adjust to any change due to its high degree of
flexibility.
Also in the fourth quarter of 2014, the Oilfield Equipment segment should
develop in line with global drilling activities which are on a stable level in
all world regions. Due to the ongoing expansion of the drilling motor fleet and
the high market acceptance for DSI circulation tools, SBO is in an excellent
position to benefit from this trend. The further business development in the
High-Precision Components segment will primarily reflect future CAPEX outlays of
global players in the oilfield services sector.
The long-term trend for more technology required to cope with growing oil and
gas consumption benefits SBO und remains unchanged despite current market
volatility.
Comparison of Key Performance Indicators
1-9/2014 1-9/2013 Change
Revenue in MEUR 356.6 348.5 +2.3%
EBITDA in MEUR 102.9 100.8 +2.1%
EBITDA margin in% 28.9 28.9 -
EBIT in MEUR 72.0 65.8 *) +9.5%
EBIT margin in% 20.2 18.9 *) -
Profit before tax in MEUR 64.5 60.8 +6.1%
Profit after tax in MEUR 46.8 42.0 +11.4%
EPS**) in EUR 2.93 2.60 +12.8%
Number of employees***) 1,663 1,565 +6.3%
*) after non-recurring items
**) based on the average number of shares in the market
***) as of September 30.
Schoeller-Bleckmann Oilfield Equipment AG is the global market leader in
high-precision components and a leading provider of oilfield equipment for the
oilfield service industry. The business focus is on non-magnetic drill string
components, high-performance drilling motors and circulation tools for
directional and horizontal drilling. As of 30 Sept. 2014, SBO employed a staff
of 1,663 (31 Dec. 2013: 1,574), 449 thereof in Ternitz / Austria and 658 in
northern America and 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
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company: 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