EQS-News: Schoeller-Bleckmann Oilfield Equipment AG: Earnings 2021 show strong return to the profit zone

EQS-News: Schoeller-Bleckmann Oilfield Equipment AG / Key word(s): Annual
Results
Schoeller-Bleckmann Oilfield Equipment AG: Earnings 2021 show strong
return to the profit zone

17.03.2022 / 08:00
The issuer is solely responsible for the content of this announcement.

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PRESS INFORMATION

SBO: Earnings 2021 show strong return to the profit zone

– Clear turnaround after crisis year 2020, continuous growth since the low
in Q3 2020

– Operating strength: EBITDA more than doubles to MEUR 60, EBIT climbing
to MEUR 28

– Profit after tax rises to MEUR 21, after MEUR minus 21.7 in 2020

– Dividend of EUR 0.75 per share proposed

– Strategy 2030: Building a green tech segment in addition to the existing
business

– Implications of the Russia-Ukraine conflict for energy markets not fully
assessable yet, little effect on SBO business at the moment

Ternitz/Vienna, 17 March 2022. Schoeller-Bleckmann Oilfield Equipment AG
(SBO), listed on the leading ATX index of the Vienna Stock Exchange,
continued its course of growth in the 2021 financial year. Following the
dramatic pandemic-related slump in the global economy in the second
quarter of 2020, SBO returned to steady and sequential quarterly growth.
SBO increased bookings and earnings significantly in 2021, and was
matching the sales level reported in 2020, whose first quarter was still
largely unaffected by the pandemic and therefore produced strong sales
figures. SBO Group sales arrived at MEUR 292.8, following MEUR 291.2 in
2020. Bookings climbed by close to 50 % to MEUR 343.3 (2020: MEUR 235.1),
and the order backlog at the end of 2021 was MEUR 111.7 (31 December 2020:
MEUR 65.2).

Operating profits were improved substantially: Earnings before interest,
taxes, depreciation and amortization (EBITDA) more than doubled to MEUR
60.0 (2020: MEUR 27.1). Profit from operations (EBIT) returned to positive
territory and came to MEUR 28.2 in 2021, following a loss of MEUR minus
28.0 in 2020. The EBITDA margin rose to 20.5 % (2020: 9.3 %), and the EBIT
margin came to 9.6 % (2020: minus 9.6 %).

Having gone up substantially, profit before and after tax was clearly
positive in 2021: profit before tax climbed to MEUR 23.4 (2020: MEUR minus
31.2), profit after tax came to MEUR 21.0 (2020: MEUR minus 21.7).
Earnings per share were EUR 1.33 (2020: EUR minus 1.38).

„After the involuntary braking maneuver that the coronavirus pandemic in
2020 required also from our company, we were able to shift up a few gears
again last year. Our operating performance was strong, producing favorable
earnings growth which brought us back to clearly positive territory
again“, comments Gerald Grohmann, CEO of SBO, on the 2021 business
results.

Strong equity and high liquidity provide cushion for investments
Equity of the SBO Group increased by around 19 % in 2021 and arrived at
MEUR 340.9 (2020: MEUR 287.0). The equity ratio improved to 42.3 % (2020:
36.9 %). Liquid funds came to MEUR 291.8 (2020: MEUR 314.0). Net liquidity
of MEUR 9.9 arrived at a similar level year-on-year (2020: net liquidity
MEUR 9.5), and gearing stood at minus 2.9 % as at 31 December 2021 (2020:
minus 3.3 %).

The cashflow from operating activities came to MEUR 22.9 (2020: MEUR
94.3), reflecting rising business volumes and the associated increase in
working capital. Capital expenditure on property, plant and equipment and
intangible assets (CAPEX) went up to MEUR 19.4 (2020: MEUR 16.2), and
purchase commitments for property, plant and equipment amounted to MEUR
3.2 (2020: MEUR 3.7).

The Executive Board will propose to the Annual General Meeting on 28 April
2022 to distribute a dividend for the financial year 2021 of EUR 0.75 per
share (2020: no dividend payment).

SBO Group presents new Strategy 2030
In the past months, the SBO Group defined its Strategy 2030 for the way to
the energy future. The Group aims to remain at the forefront of shaping
the future of the industry also in the coming decades, setting itself the
target to contribute both to energy supply security and the development
and expansion of green technologies.

„Just as we have become a strategically important player in global oil and
gas production over the past decades, we aim to become a major driver in
the global energy transition and green tech industry in the coming years“,
says CEO Gerald Grohmann. „This is how we can make the best possible use
of the strengths and capabilities of our Group, such as our global market
knowledge and technical expertise.“

Specifically, the Group plans to build a new business segment outside the
existing business by 2030. To this end, strategic investments and
acquisitions will be made, preferably in the fields of energy transition
and green tech industries. New business areas must fit the niche strategy
of SBO and fulfill a set of strict criteria, including high entry
barriers, protected through technology and specific know-how and long-term
growth potential combined with sustainable profitability. In addition,
investments in startups that have the potential to meet those criteria in
the foreseeable future are an option. In the long term, the new business
segment should generate 50 % of Group revenue.

The existing business of the SBO Group comprising high-quality products
and solutions for the oil and gas industry is to continue contributing to
energy supply security. Also in this field, the Group will continue to
invest in innovations and defend its market-leading position that is
protected by cutting-edge technology and high quality standards.

„Our traditional business models will generate cashflows for future
investments over many years, with the new business segment becoming a
significant addition to our existing portfolio. This will make the Group
more balanced and resilient for the future and also represent an
attractive investment opportunity for our global investor base“, comments
Mr Grohmann.

ESG (Environment, Social und Governance) criteria are also deeply
entrenched in the Strategy 2030. This includes, apart from expanding our
company by further ESG-compliant areas, the consistent reduction of the
low total amount of CO2 emissions produced by the business activity. The
company will continue to invest heavily in qualified employees and
additionally focus on the diversity of the teams. Apart from developing a
separate ESG Policy, SBO will further strengthen ESG communication and
strives for competitive ESG ratings.

Outlook for 2022

The implications of the Russia-Ukraine conflict and the international
sanctions against Russia are still unclear and hardly permit to make any
reliable and meaningful forecasts for the global economy. In its analysis
at the end of January, the International Energy Agency (IEA) assumed that
energy demand will continue to rise in 2022, which will also be reflected
in the oil and gas market. Exploration and production spending is expected
to increase by 16 % in 2022, after years of underinvestment. Oil and gas
prices reached new record levels in March due to the war in Ukraine.

„Only a few weeks ago, all analyses projected sound economic growth in the
current year, despite some uncertainties due to the further impacts of the
COVID-19 pandemic, delays in supply chains and price increases for many
raw materials. The war in Ukraine has hit everyone unexpectedly and
created unimaginable human suffering just a few hundred kilometers away
from Austria. Our full solidarity goes to the people affected by this
military strike“, says CEO Gerald Grohmann. „The repercussions on the
global energy market cannot be assessed yet. The low level of investment
in oil and gas exploration and production in recent years is now becoming
apparent as shortages in oil and gas arise caused by the consequences of
the war in Ukraine. Therefore it can be assumed that investment in the
exploration and production of oil and gas will increase in many regions of
the world in order to secure energy supply.“

SBO operates a small subsidiary in Siberia (Russia), which focuses on
service and repair work. The share of sales generated by SBO’s Russia
business is in the single-digit million euro range.

„In particular in the current environment it is becoming even clearer how
important both energy security and alternative energy sources are. With
our high-quality products for the oil and gas industry, we are making our
contribution to the supply of those resources. In addition, under our new
Strategy 2030, we are screening the market for innovative technologies and
aim to invest in the fields of energy transition and green tech“,
concludes SBO’s CEO Gerald Grohmann.

SBO’s key performance indicators at a glance

    2021 2020
Sales MEUR 292.8 291.2
Earnings before interest, taxes, depreciation and
amortization MEUR 60.0 27.1
(EBITDA)
EBITDA margin % 20.5 9.3
Earnings before interest and taxes (EBIT) MEUR 28.2 -28.0
EBIT margin % 9.6 -9.6
Profit before tax MEUR 23.4 -31.2
Profit after tax MEUR 21.0 -21.7
Earnings per share EUR 1.33 -1.38
Cashflow from operating activities MEUR 22.9 94.3
Liquid funds MEUR 291.8 314.0
Headcount   1,267 1,131

 

SCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesellschaft (SBO) is the
global market leader in the production of high-precision components made
of non-magnetic, high-alloy stainless steels. The Group is equally
recognized worldwide for its high-efficiency drilling tools and well
completion equipment for the oil and gas industry. The Group employs a
workforce of more than 1,200 worldwide and is successfully positioned in
technologically demanding, profitable niches. Information on the Strategy
2030 and sustainable management (ESG) is available in the annual report at
https://www.sbo.at/publikationen.

Further inquire note:

Andreas Böcskör, Corporate Communications
Schoeller-Bleckmann Oilfield Equipment AG
Phone: +43 2630 315 ext 252
E-Mail: [1]a.boecskoer@sbo.co.at

Ildiko Füredi-Kolarik
Metrum Communications GmbH
Phone: +43 1 504 69 87 ext 351
E-Mail: [2]i.fueredi@metrum.at

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17.03.2022 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: 1304817

 
End of News EQS News Service

1304817  17.03.2022 

References

Visible links
1. a.boecskoer@sbo.co.at
2. i.fueredi@metrum.at

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