close
close

SBO with good results and higher cash flow in a challenging market environment

Posted on by L. Dreeye
SBO with good results and higher cash flow in a challenging market environment 

EQS-News: Schoeller-Bleckmann Oilfield Equipment AG / Key word(s): 9 Month
   figures/Quarter Results
   SBO with solid results and higher cash flow in a challenging market
   environment

   21.11.2024 / 07:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

   SBO with solid results and higher cash flow in a challenging
   market environment

     • 1-9/2024: Sales of MEUR 425.6 sustained by 8.7% growth in the OE
       division, EBIT at MEUR 51.8, free cash flow improved to MEUR 42.5
     • Q3 2024: OE division with significant sales and EBIT improvement, AMS
       division sales affected by demand softening

   Ternitz, 21 November 2024. Schoeller-Bleckmann Oilfield Equipment AG
   (SBO), listed in the leading index ATX of the Vienna Stock Exchange,
   continued to expand into growth markets such as Latin America and the
   Middle East and invested in a new, larger facility in Saudi Arabia. These
   regional expansion steps and the diversification into new markets such as
   geothermal energy and 3D metal printing contributed to SBO's performance.
   At the same time, the market environment has become increasingly
   challenging: Oil demand growth slowed considerably compared to the two
   previous years. A highly volatile oil price in the past few months has led
   to a moderation in spending behavior in the US and internationally.
   However, the long-term fundamentals remain intact.

   In the first nine months of 2024, bookings remained solid with MEUR 372.9,
   albeit 12.7% below the high level of the previous year (1-9/2023: MEUR
   427.0). Sales of MEUR 425.6 continued at a similar level to the prior year
   period (1-9/2023: MEUR 437.2) and reflect the rebound of the Oilfield
   Equipment (OE) business in Q3, while sales in Advanced Manufacturing &
   Services (AMS) have moderated over the course of the year. The Group’s
   order backlog amounted to MEUR 166.0 at the end of September (31 December
   2023: MEUR 225.4).

   Earnings before interest, taxes, depreciation and amortization (EBITDA)
   reached MEUR 75.8 in the first nine months of 2024 (1-9/2023: MEUR 103.0),
   the EBITDA margin was 17.8% (1-9/2023: 23.6%). Profit from operations
   (EBIT) amounted to MEUR 51.8 (1-9/2023: MEUR 82.0) or 12.2% of sales (EBIT
   margin 1-9/2023: 18.7%), impacted by a challenging US market environment,
   a less favorable product mix and additional expenses in the OE division in
   the first half of the year. Lower sales and reduced gross margin in the
   AMS division in Q3 further lowered profit from operations. The rebound in
   the OE division in Q3 (EBIT of MEUR 5.7) positively contributed to the
   Group EBIT.

   Profit before tax amounted to MEUR 47.1 (1-9/2023: MEUR 74.1), reflecting
   the lower profit from operations partially offset by an improved financial
   result, as last year included a MEUR 8.5 expense related to a legal
   settlement. Profit after tax came in at MEUR 34.4 (1-9/2023: MEUR 55.8),
   resulting in EUR 2.18 in earnings per share (1-9/2023: EUR 3.54).

   “In the third quarter we achieved a significant improvement in both sales
   and EBIT of our OE business. Our expansion efforts in growth regions as
   well as our operational measures taken contributed to this development. At
   the same time, we actively managed a softening demand in AMS that impacted
   sales and earnings”, said Klaus Mader, CEO of SBO. “With our experience in
   navigating dynamic market conditions and our diversification initiatives
   such as 3D metal printing, we are well positioned for long-term success.
   We are fully committed to sustainable business excellence, which has also
   been recognized by winning the ESG Award at the Austrian Leading Companies
   Awards.”              

   Solid balance sheet and higher cash flow

   In order to refinance loans due in 2024 and 2025, and in support of its
   strategic growth and investment priorities, SBO raised a total of MEUR
   161.5 in additional funds in the course of 2024. In the same period,
   long-term loans of MEUR 69.5 were repaid. As a result, the equity ratio
   declined to 48.3% at the end of September (31 December 2023: 53.6%), with
   equity at MEUR 443.8 (31 December 2023: MEUR 448.0). Net debt decreased to
   MEUR 87.2 compared to MEUR 92.3 at the end of 2023, further improving the
   gearing ratio to 19.6% (31 December 2023: 20.6%). Cash and cash
   equivalents increased to MEUR 263.2 (31 December 2023: MEUR 162.4), mostly
   driven by the net increase in cash from financing transactions.

   The cash flow from operating activities for the first three quarters of
   2024 increased to MEUR 64.9 compared to MEUR 61.2 last year, as lower cash
   flow from earnings was more than compensated by a reduction in working
   capital. Free cash flow improved to MEUR 42.5 compared to MEUR 17.2 in the
   prior year period, which included an acquisition-related cash outflow of
   MEUR 18.8.  

   Outlook

   The oilfield service industry is expected to face a dynamic market
   environment in the near term. Highly volatile oil prices and a moderation
   in spending behavior are expected to continue impacting both the US and
   international markets. Potential policy changes in key markets,
   geopolitical uncertainties as well as volatility in commodity pricing can
   have a significant impact on market dynamics.

   Despite these short-term challenges, the long-term outlook for the energy
   sector remains positive, driven by the sustained high global energy demand
   and the emphasis on energy security. The energy transition, including the
   growth of areas like geothermal energy and carbon capture and storage,
   continues to gain momentum, and SBO is well positioned to capitalize on
   these opportunities. While managing the demand moderation within the AMS
   division going forward, SBO expects to see further improvements in the OE
   business in 2025.

   SBO is currently in the process of finalizing its strategy recalibration,
   with a related update planned for early 2025. Hand in hand, the company is
   working on a relaunch of the SBO branding, adapted to our future strategy
   and positioning in the market. The company’s focus remains on profitable
   growth, innovation, and sustainability, ensuring that SBO captures the
   opportunities of an evolving energy landscape and creates sustainable
   value. The additional funds raised are supporting the execution of these
   initiatives.

   SBO’s key performance indicators at a glance

                                                            1-9/2024 1-9/2023
   Sales                                               MEUR    425.6    437.2
   EBITDA (Earnings before interest, taxes,            MEUR     75.8    103.0
   depreciation, and amortization)
   EBITDA margin                                          %     17.8     23.6
   EBIT (Earnings before interest and taxes)           MEUR     51.8     82.0
   EBIT margin                                            %     12.2     18.7
   Profit before tax                                   MEUR     47.1     74.1
   Profit after tax                                    MEUR     34.4     55.8
   Cash flow from operating activities                 MEUR     64.9     61.2
   Free cash flow                                      MEUR     42.5     17.2
   Liquid funds as of 30 September 2024 / 31 December  MEUR    263.2    162.4
   2023
   Net debt as of 30 September 2024 / 31 December 2023 MEUR     87.2     92.3
   Equity ratio as of 30 September 2024 / 31 December     %     48.3     53.6
   2023
   Headcount as of 30 September 2024 / 31 December             1,604    1,601
   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 more than 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 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)[email protected]  

    

   Ildiko Füredi-Kolarik

   Senior Advisor

   Tel: +43 660 3211107

   E-Mail: (2)[email protected] 

   ══════════════════════════════════════════════════════════════════════════

   21.11.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

   ══════════════════════════════════════════════════════════════════════════

   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: 2035013


    
   End of News EQS News Service


   2035013  21.11.2024 CET/CEST

References

   Visible links
   1. mailto:[email protected]
   2. mailto:[email protected]