EQS-News: HY 2023: SBO with high profitability and double-digit growth

EQS-News: Schoeller-Bleckmann Oilfield Equipment AG / Key word(s): Half
   Year Results
   HY 2023: SBO with high profitability and double-digit growth

   24.08.2023 / 08:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   HY 2023: SBO with high profitability and double-digit growth

     • Sales up by a third to MEUR 294.7, bookings up by 10 % to MEUR 299.2
     • EBIT rises to MEUR 55.4 (+24 %), high operating margin of 20.7 %,
       profit after tax at MEUR 43.1 (+25 %)
     • Half-year financial report now available at
       [1]https://www.sbo.at/letters

   Ternitz, 24 August 2023. Schoeller-Bleckmann Oilfield Equipment AG (SBO),
   listed in the leading index ATX of the Vienna Stock Exchange, continued
   its strong growth in the first half of 2023 following the excellent year
   2022. The company was taking advantage of the positive market environment
   in the energy sector and achieved double-digit growth in all relevant
   financial figures. A strong revenue growth of over 30 % yielded total
   sales of MEUR 294.7, backed by robust bookings that saw a 10 % increase to
   MEUR 299.2. EBIT showed a significant increase of 24 %, reaching MEUR
   55.4. Adjusted for exchange losses, EBIT margin climbed to a high of 20.7
   %, reflecting strong operational execution. Net liquidity remained high at
   MEUR 24.5 and the gearing ratio was at minus 5.7 %. In addition, an
   excellent Free Cashflow of MEUR 27.0 underlines SBO's strong financial
   footing. The company paid a dividend of EUR 2.00 per share in the second
   quarter.

   The acquisition of Dubai-based Praxis Completion Technology, announced in
   June 2023, strengthens SBO's market positioning in well completion outside
   North America. The bolt-on acquisition not only enhances the company's
   position in the Middle East, which is considered the market with the
   greatest growth momentum in the energy sector, but also expands SBO's
   product offering with a meaningful well completion technology. In
   addition, Praxis offers products for Carbon Capture & Storage (CCS)
   applications.

   Gerald Grohmann, CEO of SBO: “Our performance in the first half of this
   year demonstrates our financial and operational strength. In addition to
   capitalizing on existing market opportunities, we have further bolstered
   our foothold in an important area of our core business through the
   acquisition of Praxis Completion Technology. This acquisition also opens
   the door towards climate change mitigation technologies, in particular in
   the promising area of carbon capture and storage, where the company
   already enjoys first successes.”

   Continued strong growth in sales and profit

   Demand for SBO's products and services remained strong in the first half
   of 2023: Bookings rose by 10.2 % to MEUR 299.2 (1-6/2022: MEUR 271.5).
   Sales increased strongly by 32.3 % to MEUR 294.7 (1-6/2022: MEUR 222.7).
   Order backlog at the end of June 2023 stood at MEUR 262.1 (31 December
   2022: MEUR 265.0).

   Earnings before interest, taxes, depreciation and amortization (EBITDA)
   increased to MEUR 69.0 in the first half of 2023 (1-6/2022: MEUR 60.9),
   the EBITDA margin reached 23.4 % (1-6/2022: 27.3 %). Excluding MEUR 5.5 in
   exchange losses, adj. EBITDA even reached MEUR 74.5 or 25.3 % of sales in
   the first half of 2023. In the same period of 2022, adj. EBITDA arrived at
   MEUR 49.0 or 22.0 % (excluding MEUR 11.9 in exchange gains).

   Profit from operations (EBIT) rose by 23.5 % to MEUR 55.4 (1-6/2022: MEUR
   44.8) and reached 18.8 % of sales (EBIT margin 1-6/2022: 20.1 %). Adj.
   EBIT (excluding exchange losses of MEUR 5.5) rose to MEUR 60.9, resulting
   in an adj. EBIT margin of 20.7 %. In the first half of 2022, adj. EBIT
   (excluding exchange gains) amounted to MEUR 33.0 and resulted in an adj.
   EBIT margin of 14.8 %.

   SBO's profit before tax grew by about a third (up 31.3 %) to MEUR 56.0
   (1-6/2022: MEUR 42.7), while profit after tax rose by 25.3 % to MEUR 43.1
   (1-6/2022: MEUR 34.4). Earnings per share in the first half of 2023
   further improved to EUR 2.74 (1-6/2022: EUR 2.19).

   Both segments with on-going positive development

   The SBO Group’s business is divided into two segments: Advanced
   Manufacturing & Services (AMS) and Oilfield Equipment (OE). The AMS
   segment continued its strong performance, and sales increased to MEUR
   162.7 in the first six months of 2023 (1-6/2022: MEUR 108.9), while profit
   from operations (EBIT) rose to MEUR 35.0 (1-6/2022: MEUR 22.0). Sales in
   the OE segment grew to MEUR 131.9 (1-6/2022: MEUR 113.8), and EBIT
   increased to MEUR 24.0 (1-6/2022: MEUR 20.0).

   "Our strong operational execution is reflected in the Group's growth and
   profitability. We achieved a double-digit increase in all relevant
   financial figures, continuing our upward trend. Both segments have been
   performing well and contributed to this success. Our high liquidity and
   cashflow generation demonstrate our financial strength and provide a solid
   base for continued growth," says SBO CEO Gerald Grohmann. 

   Strong balance sheet

   In the first half of 2023, SBO’s equity increased to MEUR 430.7 (31
   December 2022: MEUR 425.0). The equity ratio improved slightly to 47.7 %
   (31 December 2022: 47.1 %). Net liquidity remained strong at MEUR 24.5 (31
   December 2022: MEUR 34.5) even after the dividend payment of MEUR 31.5.
   Gearing stood at minus 5.7 % (31 December 2022: minus 8.1 %). Liquid funds
   amounted to MEUR 266.8 (31 December 2022: MEUR 287.8). Cashflow from
   operating activities almost quadrupled to MEUR 43.1 in the first half of
   2023 (1-6/2022: MEUR 11.4), and Free Cashflow was at high MEUR 27.0, after
   a negative Free Cashflow of MEUR minus 2.4 in the first half of 2022.
   Capital expenditure on property, plant and equipment and intangible assets
   (excluding right of use assets) amounted to MEUR 17.3 (1-6/2022: MEUR
   13.8).

   Optimistic outlook

   For the second half of 2023 and beyond, the oilfield service industry is
   looking optimistically towards the future. The industry is experiencing a
   rise in global energy demand, which is driving the need for additional
   investments. Over the year 2023, projections indicate an 11 % increase in
   global exploration and production spending in the oil and gas
   markets.[2]^[1] SBO takes advantage of this market environment. The
   company's outlook is supported by fairly high visibility and customers'
   confidence in the longevity and strength of this cycle. Order books are
   strong already, in particular from orders that are related to the
   international business of SBO. Despite the expected normalization of order
   behavior by its major customers and the easing of the North American
   markets, the outlook remains positive.

   The acquisition of Praxis Completion Technology, which is expected to be
   completed in the second half of 2023, will strengthen SBO's market
   position in the fast-growing energy market in the Middle East. This
   bolt-on acquisition enhances SBO’s activities in its attractive core
   business. In addition, SBO is pursuing a number of projects for the
   development of its new business with great effort. A key element of the
   Strategy 2030 is to build a new segment in the area of “New Energy” to
   drive forward the energy solutions of tomorrow. To this end, SBO plans to
   make strategic investments or acquisitions with focus on hydrogen and
   hydrogen derivatives. In the long term, SBO aims to generate around 50 %
   of its sales mainly in sustainable energy technologies.

   "Energy is our business. Market conditions remain favorable and we are in
   an excellent position and will continue to take advantage of this
   environment. As a result, we are on track to deliver another strong year
   2023," says CEO Gerald Grohmann.   

   SBO’s Key Performance Indicators at a glance

                                                            1-6/2023 1-6/2022
   Sales                                               MEUR    294.7    222.7
   Adj. EBITDA
   (Earnings before interest, taxes, depreciation, and MEUR     74.5     49.0
   amortization adjusted for exchange gains and
   losses)
   Adj. EBITDA margin                                     %     25.3     22.0
   EBITDA
   (Earnings before interest, taxes, depreciation, and MEUR     69.0     60.9
   amortization)
   EBITDA margin                                          %     23.4     27.3
   Adj. EBIT
   (Earnings before  interest and  taxes adjusted  for MEUR     60.9     33.0
   exchange gains and losses)
   Adj. EBIT margin                                       %     20.7     14.8
   EBIT                                                MEUR     55.4     44.8
   (Earnings before interest and taxes)
   EBIT margin                                            %     18.8     20.1
   Profit before tax                                   MEUR     56.0     42.7
   Profit after tax                                    MEUR     43.1     34.4
   Earnings per share                                   EUR     2.74     2.19
   Cashflow from operating activities                  MEUR     43.1     11.4
   Free Cashflow                                       MEUR     27.0    - 2.4
   Liquid funds                                        MEUR    266.8    287.8
   as of 30 June 2023 / 31 December 2022
   Net liquidity                                       MEUR     24.5     34.5
   as of 30 June 2023 / 31 December 2022
   Headcount                                                   1,559    1,484
   as of 30 June 2023 / 31 December 2022

   SCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesellschaft (SBO) is a
   globally operating group of companies and world market leader in the
   manufacture of high-alloy, non-magnetic stainless steels. The SBO Group is
   engaged in high-precision production of stainless steels as special
   components for the oil, gas and other industries by applying innovative
   and additive technologies. The SBO Group is equally recognized worldwide
   for its directional drilling tools and equipment for well completion. With
   its subsidiaries and more than 1,500 employees worldwide, the Group is
   successfully positioned in technologically demanding, profitable niches.
   The Group is headquartered in Ternitz, Austria. Making an active
   contribution to energy transition is a key element of the Group's Strategy
   2030. More detailed information on the Strategy 2030 and sustainable
   management (ESG) is available in the Annual Report 2022
   at https://www.sbo.at/publikationen.

    

   Contact:

   Andreas Böcskör, Group Communications

   Schoeller-Bleckmann Oilfield Equipment AG

   Tel: +43 2630 315 DW 252

   E-Mail: [3][email protected]

    

   Ildiko Füredi-Kolarik

   Metrum Communications GmbH

   Tel: +43 1 504 69 87 DW 351

   E-Mail: [4][email protected]

   [5]^[1] Evercore ISI Research, Energy | Oilfield Services, Equipment &
   Drilling, July 2023.

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   24.08.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

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   Language:    English
   Company:     Schoeller-Bleckmann Oilfield Equipment AG
                Hauptstrasse 2
                2630 Ternitz
                Austria
   Phone:       +43 (0)2630/315110
   Fax:         +43 (0)2630/315101
   E-mail:      [email protected]
   Internet:    http://www.sbo.at
   ISIN:        AT0000946652
   Indices:     ATX
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1710195


    
   End of News EQS News Service


   1710195  24.08.2023 CET/CEST

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