EQS-News: SBO with strong sales and earnings growth in the first three quarters of 2023

EQS-News: Schoeller-Bleckmann Oilfield Equipment AG / Key word(s): Quarter
   Results
   SBO with strong sales and earnings growth in the first three quarters of
   2023

   22.11.2023 / 08:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   SBO with strong sales and earnings growth in the first three quarters of
   2023

     • Sales grew by 21% to MEUR 437.2, EBIT rose to MEUR 82.0
     • Adjusted EBIT increased by 53 % compared to the previous year
     • Operating cashflow significantly improved to MEUR 61.2
     • Dividend planned at the level of the previous financial year 

   Ternitz, 22 November 2023. Schoeller-Bleckmann Oilfield Equipment AG
   (SBO), listed in the leading index ATX of the Vienna Stock Exchange,
   achieved strong 9-month results for 2023. Despite a continued softening of
   the US market in Q3, overall market conditions remained favorable. Sales
   increased by 21 % year-on-year to MEUR 437.2, and the operating result
   (EBIT) improved by 13 % to MEUR 82.0. Adjusted for foreign exchange
   losses, EBIT increased by 53 % to MEUR 86.3, and the adjusted EBIT margin
   reached 19.7 %. Profit before tax came in at MEUR 74.1 and operating
   cashflow was strong at MEUR 61.2. The acquisition of Praxis Completion
   Technology was completed in October for a final price of MUSD 27.4. 

   “We have continued to deliver encouraging sales and earnings growth this
   year, thanks to our global position and a thriving international business.
   With the acquisition of Praxis, we are further strengthening our leading
   position and increasing our footprint in the Middle East, a market of
   critical importance to our business going forward. In addition, Praxis is
   already recording initial successes in the promising area of carbon
   capture and storage. This represents a strategically important step for
   SBO in the direction of climate protection technologies”, says SBO CEO
   Gerald Grohmann. 

   Continued strong growth in sales and profit

   Following an excellent year 2022, SBO continued its growth course in the
   first nine months of 2023. At MEUR 427.0, bookings were on a similar level
   to the very strong prior-year period (1-9/2022: MEUR 431.1). Sales
   increased by a substantial 21.0 % to MEUR 437.2 (1-9/2022: MEUR 361.3),
   primarily driven by continued strong growth of the international business.
   The Group’s order backlog of MEUR 245.2 remains strong at the end of
   September (30 September 2022: MEUR 189.5) and provides significant
   visibility well into 2024.  

   Earnings before interest, taxes, depreciation and amortization (EBITDA)
   rose to MEUR 103.0 (1-9/2022: MEUR 96.8) in the first nine months of 2023,
   the EBITDA margin reached 23.6 % (1-9/2022: 26.8 %). Profit from
   operations (EBIT) grew by 12.9 % to MEUR 82.0 (1-9/2022: MEUR 72.6) or
   18.7 % of sales (EBIT margin 1-9/2022: 20.1 %). EBIT adjusted for exchange
   losses of MEUR 4.4 (1-9/2022: exchange gains of MEUR 16.3) came to MEUR
   86.3 (1-9/2022: EBIT MEUR 56.3), resulting in a strongly improved adjusted
   EBIT margin of 19.7 % (1-9/2022: 15.6 %).   

   SBO's profit before tax increased by 6.0 % to MEUR 74.1 (1-9/2022: MEUR
   69.9). Profit after tax came in at MEUR 55.8 (1-9/2022: MEUR 55.3).
   Earnings per share in the first nine months of 2023 stood at EUR 3.54
   (1-9/2022: EUR 3.52).  

   Segment performance reflects thriving international business

   The SBO Group's business is divided into two segments: The AMS segment
   showed an outstanding development during the year - with a record
   performance in Q3 - and grew sales by 37.6 % to MEUR 250.2, (1-9/2022:
   MEUR 181.8). With an increase of 68.2 %, EBIT improved even more
   profoundly to MEUR 57.5 (1-9/2022: MEUR 34.2). In the OE segment,
   three-quarter sales of MEUR 187.0 were higher than in the previous year
   (1-9/2022: MEUR 179.4). EBIT reached MEUR 26.8 (1-9/2022: MEUR 32.9).  

   “Overall, we have delivered excellent results in the past nine months. The
   international business continues to thrive, which is clearly reflected in
   the outstanding performance of our AMS segment. The OE segment has faced
   some headwinds in a slower US market, but we are confident in a rebound in
   the coming months. If the positive development continues, we plan to pay a
   dividend for 2023 at the level of the previous financial year”, says CEO
   Grohmann. 

   Substantially improved cashflow and solid balance sheet

   Cashflow from operating activities significantly improved to MEUR 61.2 in
   the first nine months of 2023 (1-9/2022: MEUR 24.1). Free cashflow came in
   at MEUR 17.2, (1-9/2022: MEUR 6.2), despite the payment of MEUR 18.8 for
   the acquisition of Praxis Completion Technology. Capital expenditures on
   property, plant and equipment and intangible assets (excluding right of
   use assets) amounted to MEUR 27.0 (1-9/2022: MEUR 21.4).  

   In the first nine months of 2023, SBO's equity increased to MEUR 453.4 (31
   December 2022: MEUR 425.0). The equity ratio improved slightly to 47.3 %
   (31 December 2022: 47.1 %). Net liquidity remained high at MEUR 18.7 (31
   December 2022: MEUR 34.5) despite the dividend payment of MEUR 31.5 in Q2
   2023 (dividend Q2 2022: MEUR 11.8) and the payment for the Praxis
   acquisition of MEUR 18.8 in Q3. Gearing stood at minus 4.1 % (31 December
   2022: minus 8.1 %). Liquid funds amounted to MEUR 268.6 (31 December 2022:
   MEUR 287.8).

   Positive outlook

   The oilfield service industry is currently benefiting from a prolonged
   growth phase that has shifted its focus towards international and offshore
   markets. Investments in upstream activities are gaining momentum as
   operators commit resources to long-term projects, expand production
   capacity, conduct exploration, and increase gas production. SBO remains
   optimistic about the oil and gas sector and is confident that the
   underlying fundamentals will support a sustained, multi-year increase in
   global upstream investment. 

   At the same time, SBO is driving initiatives aimed at growing its New
   Energy segment as part of Strategy 2030, to drive the development of
   future energy solutions. In line with this vision, SBO is actively
   pursuing potential acquisition targets and strategic investments, with a
   specific focus on hydrogen and hydrogen derivatives.  
    

   “We are having an outstanding year and are confident about the future
   thanks to solid market fundamentals and our strong business performance.
   Looking ahead, although we remain vigilant about geopolitical
   developments, we believe this cycle will outlast previous ones in its
   strength and duration. Our backlog remains high and provides strong
   visibility for 2024. In executing on our Strategy 2030, we are narrowing
   down our search for acquisition targets to expand our business beyond oil
   and gas”, says CEO Grohmann.  

   SBO’s Key Performance Indicators at a glance 

                                                          1-9/2023  1-9/2022 
   Sales                                            MEUR     437.2     361.3 
   Adj. EBITDA 
   (Earnings before interest, taxes, depreciation,  MEUR     107.4      80.6 
   and amortization adjusted for exchange gains and
   losses) 
   Adj. EBITDA margin                                  %      24.6      22.3 
   EBITDA 
   (Earnings before interest, taxes, depreciation,  MEUR     103.0      96.8 
   and amortization) 
   EBITDA margin                                       %      23.6      26.8 
   Adj. EBIT 
   (Earnings before interest and taxes adjusted for MEUR      86.3      56.3 
   exchange gains and losses) 
   Adj. EBIT margin                                    %      19.7      15.6 
   EBIT                                             MEUR      82.0      72.6 
   (Earnings before interest and taxes) 
   EBIT margin                                         %      18.7      20.1 
   Profit before tax                                MEUR      74.1      69.9 
   Profit after tax                                 MEUR      55.8      55.3 
   Earnings per share                                EUR      3.54      3.52 
   Cashflow from operating activities               MEUR      61.2      24.1 
   Free Cashflow                                    MEUR      17.2       6.2 
   Liquid funds                                     MEUR     268.6     287.8 
   as of 30 September 2023 / 31 December 2022 
   Net liquidity                                    MEUR      18.7     34.5  
   as of 30 September 2023 / 31 December 2022 
   Headcount                                                 1,568     1,484 
   as of 30 September 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 steels. The SBO Group is engaged
   in high-precision production of special components for the oil, gas and
   other industries by applying innovative and additive manufacturing
   technologies. The SBO Group is equally recognized worldwide for its
   directional drilling tools and equipment for well completion in the oil,
   gas, and geothermal industry. 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:

   Monika Bell, Head of Investor Relations

   Schoeller-Bleckmann Oilfield Equipment AG

   Tel: +43 2630 315-253

   E-Mail: [1]m.bell@sbo.co.at  

    

   Ildiko Füredi-Kolarik

   Metrum Communications GmbH

   Tel: +43 1 504 69 87 DW 351

   E-Mail: [2]i.fueredi@metrum.at

    

    

    

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   22.11.2023 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:      sboe@sbo.co.at
   Internet:    http://www.sbo.at
   ISIN:        AT0000946652
   Indices:     ATX
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1778889


    
   End of News EQS News Service


   1778889  22.11.2023 CET/CEST

References

   Visible links
   1. mailto:m.bell@sbo.co.at
   2. mailto:i.fueredi@metrum.at

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