Schoeller-Bleckmann Oilfield Equipment AG
EANS-News: Schoeller-Bleckmann Oilfield Equipment AG
Half-year result delivers
strong profitability at last year's level - Bookings rising - Earnings per share
gone up
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6-month report
Ternitz/Vienna, 20 August 2014. Schoeller-Bleckmann Oilfield Equipment AG (SBO)
posted stable business development in the first half of 2014: With clearly
rising bookings, SBO generated earnings at the same level as in the first half
of 2013, continuing the satisfying development seen in the first half of 2014
throughout the second quarter.
In the first half of 2014 SBO posted an increase in bookings of 13.2% to MEUR
228.5 (first half of 2013: MEUR 201.8). Half-year sales revenues in 2014 came to
MEUR 230.3, largely at the same level as in the year before (2013: MEUR 235.4;
-2.2% y-o-y). Earnings before interest, taxes, depreciation and amortisation
(EBITDA) were MEUR 65.9, slightly below last year (2013: MEUR 68.5; -3.9%).
Earnings before interest and taxes (EBIT) in 2014 of MEUR 45.7 (2013 after
impairment: MEUR 42.9; +6.4%) exceeded last year's figures. Profit before tax of
MEUR 41.4 (2013: MEUR 40.8; +1.6%) and profit after tax of MEUR 30.3 (2013: MEUR
28.1; +8.0%) also came in above last year's result. Half-year earnings per share
of EUR 1.90 (2013: EUR 1.74; +9.4%) also were higher than last year's reading.
Margins remained largely stable year-on-year: The EBITDA margin stood at 28.6%
(2013: 29.1%), the EBIT margin at 19.8% (2013: 18.2%) and the pre-tax margin at
18.0% (2013: 17.3%).
Gerald Grohmann, CEO of SBO: "The sound development of the first quarter
continued in the second quarter. Growing sales in the Oilfield Equipment segment
helped us compensate for customers' cautious spending policy for High Precision
Components. We grew bookings, sales are stable and, being a leader in
technology, the company is highly profitable. With our targeted investments we
are trying to strengthen our profitability."
New segment reporting
In the second quarter of 2014 SBO changed the company's previous, historically
grown internal reporting by regions and adjusted its segment reporting. SBO now
divides business activities into two segments: High Precision Components
(production of high-precision MWD/LWD components) and Oilfield Equipment
(non-magnetic drill collars, drilling motors, circulation tools and other
downhole tools including service and repair work), offering customers better
transparency and market-oriented reporting.
Both segments improved bookings in the first half of 2014 compared to the same
period of last year and developed favourably: The Oilfield Equipment segment
profited from rising global drilling activity and positive business performance
for non-magnetic drill collars. In the first half of 2014, sales volumes in the
High Precision Components segment were influenced by customers' reduced capital
expenditure (spending for long-term capital goods).
Capital expenditure in fixed assets in the first half of 2014 amounted to MEUR
20.8 (2013: MEUR 27.6; -24.6%), spent primarily for further expanding the
drilling motor fleets in the US and Canada and the circulation tools fleet of
subsidiary DSI.
Outlook
According to current estimates of the International Energy Agency (IEA), global
oil consumption for full 2014 will be 92.7 mb/d, which represents an increase of
1.05 mb/d from 2013. Based on weaker macroeconomic data, this was a slight
downwards revision of the IEA's growth expectations of 1.23 mb/d from July. All
current scenarios expect global oil demand to rise continuously. In 2015 demand
should grow by another 1.3 mb/d, or 1.4%, to an aggregate 94.0 mb/d (IEA Oil
Market Report, August 2014).
All these factors constitute the basis of a continued stable environment for the
oilfield service industry. Being a leader in technology, SBO has a sound
strategic position to benefit from growing global oil and gas production. The
Oilfield Equipment segment should profit from the high level of global drilling
activity presently seen in all regions also in the second half of 2014. With its
ongoing expansion of the drilling motor fleet and high market acceptance of the
DSI circulation tool, SBO is in a position to make full use of this tendency.
Business development in the segment of High Precision Components will largely
depend on the further capital spending policy of globally operating oilfield
service companies.
From today's perspective, the effects of the current geopolitical development on
SBO cannot yet be assessed. Regardless of political escalations or newly
emerging market opportunities SBO, as in the past, is in a position to respond
flexibly and promptly to changes in the market. What remains a structural source
of growth for SBO is the continued tendency characterising higher oil and gas
consumption that, as a result, requires consistently growing use of high-end
technological equipment.
Comparison of key financial figures
1-6/2014 1-6/2013 Change
Sales in MEUR 230.3 235.4 -2.2%
EBITDA in MEUR 65.9 68.5 -3.9%
EBITDA margin in% 28.6 29.1 -
EBIT after impairment in MEUR 45.7 42.9 +6.4%
EBIT margin after impairment in% 19.8 18.2 -
Profit after tax in MEUR 30.3 28.1 +8.0%
EPS*) in EUR 1.90 1.74 +9.4%
Headcount**) in numbers 1640 1540 +6.5%
*) 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 provider of oilfield equipment for the
oilfield service industry. The business focus is on non-magnetic drillstring
components, high-performance drilling motors and circulation tools for
directional and horizontal drilling. Worldwide, SBO has employed a workforce of
1640 as at 30 June 2014 (31 December 2013: 1574), thereof 440 in Ternitz/Austria
and 657 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
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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