EQS-News: SBO with solid results and higher cash flow in a challenging market environment
EQS-News: SBO with solid 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.
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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]m.bell@sbo.co.at
Ildiko Füredi-Kolarik
Senior Advisor
Tel: +43 660 3211107
E-Mail: [2]media.relations@sbo.co.at
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21.11.2024 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: 2035013
End of News EQS News Service
2035013 21.11.2024 CET/CEST
References
Visible links
1. m.bell@sbo.co.at
2. media.relations@sbo.co.at
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