EANS-News: Schoeller-Bleckmann Oilfield Equipment AG: - Higher growth expectations for US-subsidiary Downhole lead to increased liability for option commitment -Sustained strong operating result again in Q3

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Ternitz -
- Sound market environment and strong demand boost SBO's subsidiary Downhole
Technology
- Considerably higher company value requires expense posting of MEUR 90 for the
shares of minority shareholders
- Operational performance remains successful throughout the financial year,
sales in the third quarter of 2017 at MEUR 92 even doubled in a year-on-year
comparison

Ternitz/Vienna, 17 October 2017. Downhole Technology, the latest addition to the
Well Completion business of Schoeller-Bleckmann Oilfield Equipment AG (SBO) is
exceeding the group's high expectations in terms of sales and profit due to
strong demand and a sound market environment.

"We were absolutely right in expanding our Well Completion business and
acquiring Downhole Technology counter-cyclically", comments Gerald Grohmann, CEO
of SBO. "This helps us to benefit even more from the booming North American
market. As the products of Downhole Technology are easy to handle and deliver
great efficiency advantages, they create enormous demand and disproportionately
high market share gains exceeding our initial assumptions by far."

This positive development which is also reflected in the business result of SBO
has an effect on the valuation of the put/call option for minority shareholders,
agreed upon in course of the acquisition of Downhole Technology. On 1 April
2016, SBO had acquired 68 % of the shares in Downhole Technology. In the wake of
the acquisition an option was concluded for the remaining 32 % of the shares in
the company with the minority shareholders. This option can be exercised not
earlier than 1 April 2019. Owing to the strong growth of Downhole Technology,
the price for acquiring the remaining shares at the earliest possible date for
exercising the option is now projected to be considerably higher. SBO's
accounting principles require in the third quarter of 2017 a non-cash-effective
expense posting of MEUR 90 in the financial result of the income statement of
SBO.

"The strong growth of Downhole Technology is definitely in our best interest, as
it shows that we made a highly beneficial decision by investing at the right
point in time. The value of our majority shares is rising on the same scale",
comments Mr. Grohmann. "The fact that we need to absorb the increase in the
company value in the put/call option is only a short-term downside. In the long
run, we will obviously benefit from the higher value of a subsidiary that will
be wholly owned by SBO after the option has been exercised."

This will have no effect on the strong operating result of SBO: In the third
quarter of 2017 sales are expected to come to MEUR 92, more than doubling the
figure reported in the same period of last year (Q3/2016: MEUR 45.1), while
earnings before interest, taxes, depreciation, and amortisation (EBITDA) should
come to MEUR 26. The operating result (EBIT) of MEUR 13 will be in positive
territory for the second consecutive quarter. For the first time since the
crisis started the EBITDA margin will settle at 28 %, above its long-term
average (2001-2016: 24.1 %). Profit before tax will arrive at MEUR minus 78 in
the third quarter, considering the expense posting from the option. This
positive operating result will be the decisive factor for the dividend proposal
for the 2017 financial year. All amounts mentioned are preliminary figures. The
final results for the first three quarters of 2017 will be published on 23
November 2017 as planned. "I am very satisfied with the operational development
of our business. This is why I believe that we will again make a dividend
proposal for the 2017 financial year. We will continue to take full advantage of
the North American growth and, at the same time, prepare for the time when the
international market starts to get back on track", says Mr. Grohmann, SBO's CEO.

Key performance indicators at a glance

_________________________________________________
|                 |    |Q1-Q3 / 2017 |Q1-Q3 / 2016|
|_________________|____|(preliminary)|____________|
|Sales____________|MEUR|228__________|133.1_______|
|Bookings_________|MEUR|241__________|116.5_______|
|EBITDA___________|MEUR|48___________|-7.2________|
|EBITDA_margin____|%___|21___________|-5.4________|
|EBIT_____________|MEUR|10___________|-50.9_______|
|EBIT_margin______|%___|4____________|-38.2_______|
|Profit_before_tax|MEUR|-86__________|-36.2_______|

Further inquiry note:
Andreas Böcskör, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz, Hauptstraße 2
Phone: +43 2630/315 ext 252, fax ext 101
e-mail: [email protected]

Ildiko Füredi-Kolarik
Metrum Communications GmbH
Phone: +43 1 504 69 87 ext 351
e-mail: [email protected]

end of announcement euro adhoc
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issuer: Schoeller-Bleckmann Oilfield Equipment AG
Hauptstrasse 2
A-2630 Ternitz
phone: 02630/315110
FAX: 02630/315101
mail: [email protected]
WWW: http://www.sbo.at
ISIN: AT0000946652
indexes: WBI, ATX
stockmarkets: Wien
language: English

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