EQS-News: SBO with strong sales and earnings growth in the first three quarters of 2023
EQS-News: Schoeller-Bleckmann Oilfield Equipment AG / Key word(s): Quarter
Results
SBO with strong sales and earnings growth in the first three quarters of
2023
22.11.2023 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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SBO with strong sales and earnings growth in the first three quarters of
2023
• Sales grew by 21% to MEUR 437.2, EBIT rose to MEUR 82.0
• Adjusted EBIT increased by 53 % compared to the previous year
• Operating cashflow significantly improved to MEUR 61.2
• Dividend planned at the level of the previous financial year
Ternitz, 22 November 2023. Schoeller-Bleckmann Oilfield Equipment AG
(SBO), listed in the leading index ATX of the Vienna Stock Exchange,
achieved strong 9-month results for 2023. Despite a continued softening of
the US market in Q3, overall market conditions remained favorable. Sales
increased by 21 % year-on-year to MEUR 437.2, and the operating result
(EBIT) improved by 13 % to MEUR 82.0. Adjusted for foreign exchange
losses, EBIT increased by 53 % to MEUR 86.3, and the adjusted EBIT margin
reached 19.7 %. Profit before tax came in at MEUR 74.1 and operating
cashflow was strong at MEUR 61.2. The acquisition of Praxis Completion
Technology was completed in October for a final price of MUSD 27.4.
“We have continued to deliver encouraging sales and earnings growth this
year, thanks to our global position and a thriving international business.
With the acquisition of Praxis, we are further strengthening our leading
position and increasing our footprint in the Middle East, a market of
critical importance to our business going forward. In addition, Praxis is
already recording initial successes in the promising area of carbon
capture and storage. This represents a strategically important step for
SBO in the direction of climate protection technologies”, says SBO CEO
Gerald Grohmann.
Continued strong growth in sales and profit
Following an excellent year 2022, SBO continued its growth course in the
first nine months of 2023. At MEUR 427.0, bookings were on a similar level
to the very strong prior-year period (1-9/2022: MEUR 431.1). Sales
increased by a substantial 21.0 % to MEUR 437.2 (1-9/2022: MEUR 361.3),
primarily driven by continued strong growth of the international business.
The Group’s order backlog of MEUR 245.2 remains strong at the end of
September (30 September 2022: MEUR 189.5) and provides significant
visibility well into 2024.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
rose to MEUR 103.0 (1-9/2022: MEUR 96.8) in the first nine months of 2023,
the EBITDA margin reached 23.6 % (1-9/2022: 26.8 %). Profit from
operations (EBIT) grew by 12.9 % to MEUR 82.0 (1-9/2022: MEUR 72.6) or
18.7 % of sales (EBIT margin 1-9/2022: 20.1 %). EBIT adjusted for exchange
losses of MEUR 4.4 (1-9/2022: exchange gains of MEUR 16.3) came to MEUR
86.3 (1-9/2022: EBIT MEUR 56.3), resulting in a strongly improved adjusted
EBIT margin of 19.7 % (1-9/2022: 15.6 %).
SBO’s profit before tax increased by 6.0 % to MEUR 74.1 (1-9/2022: MEUR
69.9). Profit after tax came in at MEUR 55.8 (1-9/2022: MEUR 55.3).
Earnings per share in the first nine months of 2023 stood at EUR 3.54
(1-9/2022: EUR 3.52).
Segment performance reflects thriving international business
The SBO Group’s business is divided into two segments: The AMS segment
showed an outstanding development during the year – with a record
performance in Q3 – and grew sales by 37.6 % to MEUR 250.2, (1-9/2022:
MEUR 181.8). With an increase of 68.2 %, EBIT improved even more
profoundly to MEUR 57.5 (1-9/2022: MEUR 34.2). In the OE segment,
three-quarter sales of MEUR 187.0 were higher than in the previous year
(1-9/2022: MEUR 179.4). EBIT reached MEUR 26.8 (1-9/2022: MEUR 32.9).
“Overall, we have delivered excellent results in the past nine months. The
international business continues to thrive, which is clearly reflected in
the outstanding performance of our AMS segment. The OE segment has faced
some headwinds in a slower US market, but we are confident in a rebound in
the coming months. If the positive development continues, we plan to pay a
dividend for 2023 at the level of the previous financial year”, says CEO
Grohmann.
Substantially improved cashflow and solid balance sheet
Cashflow from operating activities significantly improved to MEUR 61.2 in
the first nine months of 2023 (1-9/2022: MEUR 24.1). Free cashflow came in
at MEUR 17.2, (1-9/2022: MEUR 6.2), despite the payment of MEUR 18.8 for
the acquisition of Praxis Completion Technology. Capital expenditures on
property, plant and equipment and intangible assets (excluding right of
use assets) amounted to MEUR 27.0 (1-9/2022: MEUR 21.4).
In the first nine months of 2023, SBO’s equity increased to MEUR 453.4 (31
December 2022: MEUR 425.0). The equity ratio improved slightly to 47.3 %
(31 December 2022: 47.1 %). Net liquidity remained high at MEUR 18.7 (31
December 2022: MEUR 34.5) despite the dividend payment of MEUR 31.5 in Q2
2023 (dividend Q2 2022: MEUR 11.8) and the payment for the Praxis
acquisition of MEUR 18.8 in Q3. Gearing stood at minus 4.1 % (31 December
2022: minus 8.1 %). Liquid funds amounted to MEUR 268.6 (31 December 2022:
MEUR 287.8).
Positive outlook
The oilfield service industry is currently benefiting from a prolonged
growth phase that has shifted its focus towards international and offshore
markets. Investments in upstream activities are gaining momentum as
operators commit resources to long-term projects, expand production
capacity, conduct exploration, and increase gas production. SBO remains
optimistic about the oil and gas sector and is confident that the
underlying fundamentals will support a sustained, multi-year increase in
global upstream investment.
At the same time, SBO is driving initiatives aimed at growing its New
Energy segment as part of Strategy 2030, to drive the development of
future energy solutions. In line with this vision, SBO is actively
pursuing potential acquisition targets and strategic investments, with a
specific focus on hydrogen and hydrogen derivatives.
“We are having an outstanding year and are confident about the future
thanks to solid market fundamentals and our strong business performance.
Looking ahead, although we remain vigilant about geopolitical
developments, we believe this cycle will outlast previous ones in its
strength and duration. Our backlog remains high and provides strong
visibility for 2024. In executing on our Strategy 2030, we are narrowing
down our search for acquisition targets to expand our business beyond oil
and gas”, says CEO Grohmann.
SBO’s Key Performance Indicators at a glance
1-9/2023 1-9/2022
Sales MEUR 437.2 361.3
Adj. EBITDA
(Earnings before interest, taxes, depreciation, MEUR 107.4 80.6
and amortization adjusted for exchange gains and
losses)
Adj. EBITDA margin % 24.6 22.3
EBITDA
(Earnings before interest, taxes, depreciation, MEUR 103.0 96.8
and amortization)
EBITDA margin % 23.6 26.8
Adj. EBIT
(Earnings before interest and taxes adjusted for MEUR 86.3 56.3
exchange gains and losses)
Adj. EBIT margin % 19.7 15.6
EBIT MEUR 82.0 72.6
(Earnings before interest and taxes)
EBIT margin % 18.7 20.1
Profit before tax MEUR 74.1 69.9
Profit after tax MEUR 55.8 55.3
Earnings per share EUR 3.54 3.52
Cashflow from operating activities MEUR 61.2 24.1
Free Cashflow MEUR 17.2 6.2
Liquid funds MEUR 268.6 287.8
as of 30 September 2023 / 31 December 2022
Net liquidity MEUR 18.7 34.5
as of 30 September 2023 / 31 December 2022
Headcount 1,568 1,484
as of 30 September 2023 / 31 December 2022
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 1,500
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 2022 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
Metrum Communications GmbH
Tel: +43 1 504 69 87 DW 351
E-Mail: [2]i.fueredi@metrum.at
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22.11.2023 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: 1778889
End of News EQS News Service
1778889 22.11.2023 CET/CEST
References
Visible links
1. m.bell@sbo.co.at
2. i.fueredi@metrum.at
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