19.08.2005 – 06:37

Schoeller-Bleckmann Oilfield Equipment AG

euro adhoc: Schoeller-Bleckmann Oilfield Equipment AG
Quarterly or Semiannual Financial Statements
Schoeller-Bleckmann Oilfield Equipment AG: Pre-tax Profit Rises 59% to EUR 10.6 Million - Orders Received up 22% from 2004 Market remains strong, dri

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18.08.2005

Ternitz, August 19, 2005. The first half of the 2005 business year
has proceeded quite favorably for Schoeller-Bleckmann Oilfield
Equipment AG (SBO), which is listed on the Vienna Stock Exchange’s
ATX share index. The pre-tax profit on ordinary activities climbed to
EUR 10.6 million in the first half year of 2005, an increase of 59%
compared to EUR 6.7 million posted in the comparable period of 2004.
Sales rose by 10% to EUR 79.1 million, up from EUR 72 million in the
first six months of last year. In the period under review, the volume
of orders received increased by 22% from EUR 85.2 million to EUR
103.9 million. The backlog totalled EUR 61.7 million at the end of
June 2005, significantly higher than the volume of orders amounting
to EUR 45 million as of June 30, 2004.

"As expected, the continuing growth in demand for crude oil has led
international oil companies to increasingly invest in developing new
sources of oil. SBO has been able to optimally profit from this
positive business environment", says Mr. Gerald Grohmann, Chairman of
the Executive Board of Schoeller-Bleckmann Oilfield Equipment AG, in
commenting on the company’s half-year business results. "The high
level of demand has benefitted all our business segments and
production locations, particularly our drilling motor division BICO,"
he added. Several months ago, the market responded quite favorably
when BICO launched a new drilling motor under the brand name "Spiro
Star".

Net income climbed 71% to EUR 7.5 million in the first two quarters
of 2005, following EUR 4.4 million in the same period last year. This
represents earnings per share of EUR 0.52, calculated in accordance
with the increased volume of shares averaging a total of 14.5
million, following the capital increase implemented in 2005. This
compares to earnings per share of EUR 0.34, based on a volume of 13
million outstanding shares in the first half of 2004. In the period
under review, SBO managed to improve its business results despite a
further decline in the average value of the dollar by 4.7%.

Begin of investment program to boost production capacity

The capital increase which was successfully carried out in March 2005
resulted in net proceeds totalling EUR 51.8 million. As a result, the
company’s equity ratio increased from 44% of the consolidated balance
sheet total as of December 31, 2004 to 62% of the balance sheet total
as of June 30, 2005. Part of the proceeds derived from the capital
increase were used to repatriate short-term liabilities as well as
for investment financing. However, most of the capital increase is
designed to help finance a EUR 100 million strategic investment
program on the part of Schoeller-Bleckmann Oilfield Equipment, which
is scheduled to be completed by 2007.

Within the framework of the planned expansion of production
capacities, investments in capital equipment were significantly
increased to EUR 8.1 million in the first six months of 2005, up from
EUR 4.8 million in the first half of 2004. This encompassed an
increase in the company’s stock of drilling motors, as well as the
expansion of available machinery used in the production of
high-precision components at the Ternitz and Houston production
locations. SBO’s investment activities will be further intensified in
the second half of 2005. The increase in production also led to a
rise in the number of employees at all locations.

Market remains strong - favorable outlook for SBO’s business results
in 2005

For the second half of 2005, SBO expects the current business
environment to remain unchanged, marked by an ongoing high level of
bookings. The challenge in the upcoming months will be to effectively
tailor the number of employees as well as the supply of materials to
the level of demand, particularly at the company’s American
production facilities. The high volume of orders will serve as the
basis for an ongoing positive development in the second half of 2005.
Part of the current backlog represents orders for 2006.

Key Figures, in MEUR

June 30, 2005     June 30, 2004
Sales                     79.1              72.0
EBIT                      11.2               7.4
EBIT Margin (%)           14.2              10.3
Pre-tax profit            10.6               6.7
Net income                 7.5               4.4
Earnings per share*        0.52              0.34
Employees**               848               783

* On the basis of the average number of outstanding shares  **As of
June 30th. Number of employees at June 30, 2004 adjusted to take
account of divestiture of SBO subsidiary Bafco in the first quarter
of 2005.

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
high-performance direction drilling. SBO employs a work force of 848
people worldwide (June 30, 2004: 783; adjusted to take account of
SBO’s subsidiary Bafco, which the company divested in the first
quarter of 2005). 218 people are employed at company headquarters in
Ternitz, Lower Austria, and 436 in North America (including Mexico).

end of announcement                               euro adhoc 19.08.2005 06:00:00

Further inquiry note:

Gerald Grohmann, Chairman of the Executive Board
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz, Austria, 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: 94665
Index: WBI, ATX Prime
Börsen: Wiener Börse AG / official dealing