EQS-News: SBO with high sales and solid EBIT in Q1 2024 despite competitive US market

EQS-News: Schoeller-Bleckmann Oilfield Equipment AG / Key word(s): Quarter
   Results
   SBO with high sales and solid EBIT in Q1 2024 despite competitive US
   market

   23.05.2024 / 07:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   SBO with high sales and solid EBIT in Q1 2024 despite competitive US
   market

     • Q1 sales of MEUR 146.7 maintained a high level after record in 2023;
       EBIT at MEUR 20.6
     • AMS division continued excellent performance: Sales at MEUR 81.9;
       21.7% EBIT margin
     • Results of OE division impacted by continued slow US market
     • Bookings up by 1.7% q-o-q to MEUR 118.6
     • Additional Velo3D metal printer in Europe expands additive
       manufacturing capacity 

   Ternitz, 23 May 2024. Schoeller-Bleckmann Oilfield Equipment AG (SBO),
   listed in the leading index ATX of the Vienna Stock Exchange, had a solid
   start to the year. SBO recorded a slight increase in bookings
   quarter-over-quarter, a positive shift after four consecutive quarters of
   decline. The Advanced Manufacturing & Services (AMS) business reported
   another quarter of high sales, driven by the positive international market
   environment. In the Oilfield Equipment (OE) business, the recently
   acquired Praxis Completion Technology contributed to growth in the Middle
   East, while the division’s US business faced increased market pressure.

   SBO’s bookings of MEUR 118.6 were below the exceptionally strong Q1 2023
   (MEUR 157.6), a quarter that was characterized by capacity securing order
   behavior of customers. However, Q1 2024 bookings increased by 1.7%
   compared to Q4 2023, driven by the AMS division. Sales of MEUR 146.7
   continued at the high levels of previous quarters and Q1 2023 (1-3/2023:
   MEUR 147.3). The Group’s order backlog amounted to MEUR 195.0 at the end
   of March (31 December 2023: MEUR 225.4).

   Earnings before interest, taxes, depreciation and amortization (EBITDA)
   reached MEUR 28.8 in the first quarter (1-3/2023: MEUR 33.4), the EBITDA
   margin was 19.6% (1-3/2023: 22.7%). Profit from operations (EBIT) amounted
   to MEUR 20.6 (1-3/2023: MEUR 26.7) or 14.0% of sales (EBIT margin
   1-3/2023: 18.1%). The earnings decline was entirely driven by the OE
   division.  Profit before tax amounted to MEUR 19.2 (1-3/2023: MEUR 27.0).
   Profit after tax came in at MEUR 15.0 (1-3/2023: MEUR 21.3), resulting in
   EUR 0.95 in earnings per share (1-3/2023: EUR 1.35).  

   Klaus Mader, CEO of SBO, said: "Our first quarter results reflect a mixed
   picture due to different market environments across regions. The AMS
   division delivered another excellent quarter with increased sales and high
   EBIT margins. Our OE division was impacted by the weaker US market and an
   unfavorable product mix resulting in lower margins. The increase in
   bookings in Q1, driven by the AMS division, has reversed the trend of the
   last quarters and is an encouraging signal of growing demand which we
   expect to continue in Q2. Our focus remains on diversifying our product
   portfolio and regionally expanding in the growth markets Middle East and
   Asia.”

   Segment performance reflects mixed picture between markets 

   The continued strong performance of the AMS segment underlines its
   position as a key value driver for the Group. Sales reached MEUR 81.9, up
   +4.4% quarter-on-quarter and exactly on par with the same period last year
   (1-3/2023: MEUR 81.9). EBIT increased slightly to MEUR 17.8 (1-3/2023:
   MEUR 17.5) with an EBIT margin of 21.7% (1-3/2023: 21.3%). 

   The OE segment faced a more challenging market environment. Sales amounted
   to MEUR 64.8 (1-3/2023: MEUR 65.4). The competitive US market was one of
   the main reasons for the lower EBIT of MEUR 3.6 compared to the same
   period of the previous year (1-3/2023: MEUR 11.7). An unfavorable product
   mix and higher costs further impacted the segment’s earnings.  

   Solid balance sheet

   In the first quarter 2024, SBO's equity increased to MEUR 473.9 (31
   December 2023: MEUR 448.0) and the equity ratio rose to 54.7% (31 December
   2023: 53.6%). Net debt decreased to MEUR 89.5 (31 December 2023: MEUR
   92.3), which improved gearing to 18.9% (31 December 2023: 20.6%). Cash and
   cash equivalents amounted to MEUR 168.7 (31 December 2023: MEUR 162.4). 

   The cash flow from operating activities for the quarter amounted to MEUR
   9.7 compared to MEUR 19.6 in Q1 2023, mostly a result of the lower
   earnings. Capital expenditure on property, plant and equipment and
   intangible assets (excluding right of use assets) of MEUR 7.8 were at
   similar levels as last year (1-3/2023: MEUR 7.3). Free cash flow amounted
   to MEUR 2.5 (1-3/2023: MEUR 12.8).  

   Business Highlights

   In Q1, SBO continued the significant expansion of its location in Saudi
   Arabia. This strategic move will help strengthen SBO’s position in this
   fast-growing region and increase the local presence. The new facility of
   nearly 3,500 m^2 will allow SBO to further grow in this market.

   The installation of the first Velo3D XC metal printer at the Austrian
   facility in Ternitz expands SBO’s capabilities in this state-of-the-art
   additive manufacturing technology. This sets a new industry standard in
   Europe, reinforcing SBO’s position as a leader in the manufacturing of
   complex components for various industries, including space and aerospace. 

   In the geothermal sector SBO further strengthened its position through
   successful collaborations with their customers in several countries. For
   example, a custom-made Boss Hog HT composite frac plug was designed which
   significantly outperformed other options.

   Outlook

   The oilfield service industry continues to grow with a clear focus on
   international markets, especially the Middle East, Latin America and Asia.
   The overall market fundamentals remain supportive and the sentiment of
   SBO’s customer base is optimistic, especially with regard to the
   international markets. In North America, the market developments over the
   past few months point to a more challenging environment also for the
   near-term future.  

   SBO remains positive about the oil and gas sector and is confident that
   the core business will continue to grow. By capturing growth opportunities
   in international markets, further supported by the expanding presence in
   the Middle East and Asia, the Group looks optimistic into the future,
   albeit with a more cautious outlook for the US business.

   At the same time, SBO is continuing its work on the development of a new
   business segment in the green tech energy sector. After solidifying the
   strategic plan and strengthening the team dedicated to this area, SBO is
   advancing the adaptation and use of SBO products in the area of new energy
   such as geothermal.

    SBO’s Key Performance Indicators at a glance

                                                          1-3/2024  1-3/2023 
   Sales                                            MEUR     146.7     147.3 
   EBITDA (Earnings before interest, taxes,         MEUR      28.8      33.4 
   depreciation, and amortization) 
   EBITDA margin                                       %      19.6      22.7 
   EBIT (Earnings before interest and taxes)        MEUR      20.6      26.7 
   EBIT margin                                         %      14.0      18.1 
   Profit before tax                                MEUR      19.2      27.0 
   Profit after tax                                 MEUR      15.0      21.3 
   Cash flow from operating activities              MEUR       9.7      19.6 
   Free cash flow                                   MEUR       2.5      12.8 
   Liquid funds                                     MEUR     168.7     162.4 
   as of 31 March 2024 / 31 December 2023 
   Net debt                                         MEUR      89.5     92.3  
   as of 31 March 2024 / 31 December 2023 
   Equity ratio                                        %      54.7      53.6 
   as of 31 March 2024 / 31 December 2023 
   Headcount                                                 1,631     1,601 
   as of 31 March 2024 / 31 December 2023 

   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 about 1,600
   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 2023 at [1]https://www.sbo.at/publikationen.

   Contact:

   Monika Bell, Head of Investor Relations

   Schoeller-Bleckmann Oilfield Equipment AG

   Tel: +43 2630 315-253

   E-Mail: [2]m.bell@sbo.co.at  

    

   Ildiko Füredi-Kolarik, Senior Advisor

   Tel: +43 660 3211107

   E-Mail: [3]media.relations@sbo.co.at 

    

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   23.05.2024 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: 1909121


    
   End of News EQS News Service


   1909121  23.05.2024 CET/CEST

References

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   2. mailto:m.bell@sbo.co.at
   3. mailto:media.relations@sbo.co.at

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