Schoeller-Bleckmann Oilfield Equipment AG
EANS-News: Schoeller-Bleckmann Oilfield Equipment AG
Positive operating result
in challenging market environment - Very sound balance sheet structure with
liquid means of MEUR 165 - cashflow increased to MEUR 57
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6-month report
Ternitz/Vienna, 20 August 2015. In the first half of 2015, the oilfield service
industry was hit by the expected collapse of drilling activity, and so was
Schoeller-Bleckmann Oilfield Equipment AG (SBO). Nevertheless, SBO was able to
generate positive operating income in this extremely difficult market
environment.
Sales fell by 18.9 %, to MEUR 186.9 (1-6/2014: MEUR 230.3). Here, SBO still
profited from the strong bookings in the fourth quarter of 2014. Earnings before
interest, taxes, depreciation, and amortisation (EBITDA) fell by 31.5 %, to MEUR
45.1 (1-6/2014: MEUR 65.9). Earnings before interest and taxes (EBIT) shrank by
57.6 %, to MEUR 19.3 (1-6/2014: MEUR 45.7). Half-year profit before tax arrived
at MEUR 4.8, down 88.5 % from last year's reading (1-6/2014: MEUR 41.4).
Half-year profit after tax arrived at MEUR 0.0 (1-6/2014: MEUR 30.3). Half-year
earnings per share were EUR 0.0 (1-6/2014: EUR 1.90). Cashflow from operating
activities increased from MEUR 28.4 by 101.5 % to MEUR 57.1.
An effect created by the quarterly valuation of option commitments was reflected
in the financial result, concerning essentially the option for acquiring 33 % of
the shares in Resource Well Completion Inc. (Resource): According to IFRS 13, an
additional non-cash-effective expenditure of MEUR 12.1 had to be included. While
business prospects for Resource remain unchanged and thus had no influence on
this adjustment, modification of the quarterly multiple used - which had no
effect on the actual value of the option - was relevant to increasing the option
commitment.
Gerald Grohmann, CEO of SBO: "We delivered a positive operating income in the
first half of 2015, despite the continued extremely difficult market
environment. Cashflow from operating activities even doubled from last year's
reading. As we expected, 2015 is going to be a challenging year for the entire
oilfield service industry. We are preparing for the current downturn to last
longer than previous ones. But we know our industry and have learnt how to deal
with its cycles. This is why we initiated a set of measures at a very early
point and will consistently pursue this course."
The EBITDA margin came to 24.1 % (1-6/2014: 28.6 %), the EBIT margin was 10.4 %
(1-6/2014: 19.8 %), and the pre-tax margin arrived at 2.6 % (1-6/2014: 18.0 %).
Compared to year-end 2014, net debt as at 30 June 2015 fell by 69.4 %, to MEUR
10.9 (31 December 2014: MEUR 35.6). Liquid means went up by 27.3 %, to MEUR
165.7 (31 December 2014: MEUR 130.2). This rise was mainly attributable to a
decrease of the net working capital of MEUR 38.6.
With its equity ratio of 57 % SBO has a very sound balance sheet structure and
therefore was able, despite the current downturn, to distribute to shareholders
an unchanged high dividend of EUR 1.50 per share for the year 2014 (MEUR 24).
Bookings dropped by 54.1 %, to MEUR 104.8 (1-6/2014: MEUR 228.5). The order
backlog at the end of the first half of the year arrived at MEUR 60.9, down 43.7
% from last year's reading (30 June 2014: MEUR 108.1).
Outlook
In its most recent report the International Monetary Fund (IMF) reviewed its
forecast for global economic growth in full 2015 slightly downwards, from 3.5 %
to 3.3 % (2014: 3.4 %). For 2016, the IMF currently projects growth to arrive at
3.8 %. According to the International Energy Agency (IEA), oil consumption is
set to go up in the third and fourth quarter (94.5 mb/d and 95.2 mb/d, following
93.5 mb/d in the second quarter). Calculated for full 2015, this should bring
average growth up by 1.6 mb/d to 94.2 mb/d. For 2016, IEA anticipates growth to
come to 1.4 mb/d (IEA Oil Market Report August 2015). Barclays, one of Britain's
major banks, projects growth levels of 1.7 mb/d in 2016 (Barclays' Oil Market
Outlook August 2015).
SBO continues to expect global E&P spending to contract by 20 % to 30 % in full
2015. Consequently, the company braces for a continuation of the very difficult
development in fiscal 2015. SBO will consistently continue implementing the
countermeasures initiated in 2014 throughout the second half of 2015. However,
those measures can compensate for only part of the fierce decline in demand in
the established core markets. Our operating cashflow remains positive, debt is
low and liquid means are sufficiently high to provide SBO with a stable basis to
overcome the current cyclical downturn. As a result, SBO is in a position to
continue its search for strategically fitting acquisition targets, even in the
present challenging environment.
The current situation has demonstrated once again how fast the business cycle in
the oil and gas industry can turn around. While full attention is now focused on
managing the downturn, it is clear that the medium to long-term growth
perspectives for the oilfield service industry remain absolutely intact. Growing
demand for oil and gas, in addition to increasing decline rates from existing
fields, will call for new spending and usher in the next upswing for which SBO,
as technology and market leader, is well prepared.
Comparison of key financial figures
1-6/2015 1-6/2014 Change
Sales in MEUR 186.9 230.3 -18.9 %
EBITDA in MEUR 45.1 65.9 -31.5 %
EBITDA margin in % 24.1 28.6 -
EBIT in MEUR 19.3 45.7 -57.6 %
EBIT margin in % 10.4 19.8 -
Profit before tax in MEUR 4.8 41.4 -88.5 %
Profit after tax in MEUR 0.0 30.3 -99.9 %
EPS* in EUR 0.0 1.90 -99.9 %
Headcount** in numbers 1,279 1,640 -22.0 %
* based on average number of shares outstanding
** reporting date 30 June
Schoeller-Bleckmann Oilfield Equipment AG is the global market leader in
high-precision components and a leading supplier of oilfield equipment for the
oilfield service industry. The business focus is on non-magnetic drillstring
components and high-tech downhole tools for drilling and completing directional
and horizontal wells. As of 30 June 2015, SBO has employed a workforce of 1,279
worldwide (30 June 2014: 1,640), thereof 408 in Ternitz/Austria and 486 in North
America (including Mexico).
Further inquiry note:
MMag Florian Schütz, MBA
Head of Investor Relations SBO
Tel.: +43 2630 315-251
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