Schoeller-Bleckmann Oilfield Equipment AG

EANS-News: Schoeller-Bleckmann Oilfield Equipment AG: Sales increased steeply in first half of 2017, bookings doubled

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-	Upward trend in North America continues
-	Earnings improvement driven by strong second quarter
-	SBO is well positioned for further growth 


Mid Year Results

Ternitz - Ternitz/Vienna, 24 August 2017. The business environment of the
oilfield service industry shows strong signs of recovery. While stagnation is
observed internationally, the United States and Canada are driving this
development. This is where spending for exploration and production (E&P) is set
to grow by 41 % in year 2017. Schoeller-Bleckmann Oilfield Equipment AG (SBO),
which is listed in the ATX segment of the Vienna Stock Exchange, benefits from
its strong positioning in the North American market and posts substantially
higher sales and bookings figures for the first half of 2017.

SBO generated sales amounting to MEUR 135.7 in the first half of 2017. Compared
to the crisis year of 2016, this marked a sharp increase of 54.2 % (1-6/2016:
MEUR 88.0). Bookings in the first half of 2017 doubled and arrived at MEUR
150,0, following MEUR 75,0 in the first half of 2016. Strong performance in the
second quarter of 2017 has further driven the sound development seen since the
beginning of the year. The order backlog at the end of the first half of 2017
stood at MEUR 34.7, following MEUR 21.1 as of 30 June 2016.

The steep increase in sales is reflected in a distinct improvement of earnings.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA)
returned to positive territory, from MEUR minus 5.7 in the first half of 2016 to
MEUR 22.0. The strong development is mirrored also in the operating result
(EBIT), which improved from MEUR minus 36.2 in the first half of 2016 to MEUR
minus 3.6 in the first half of 2017. In the second quarter, and for the first
time following the two years of crisis, the company's operating result (EBIT)
came in on the positive side again, at MEUR 2.2 after MEUR minus 5.8 in the
first quarter of 2017. The EBITDA margin stood at 16.2 % (1-6/2016: minus 6.5
%), the EBIT margin at minus 2.6 % (1-6/2016: minus 41.1 %).

"We have implemented our strategy consistently even in the years of the crisis,
expanded the Oilfield Equipment segment and widened our presence in North
America. This is what benefits us now, as the business in this region is already
running at full pace", comments Gerald Grohmann, CEO of SBO. "In particular the
second quarter was very strong. We have again improved sales and results over
the start of the year and turned around our operating income which has re-
entered positive territory for the first time in two years."

Improved earnings, sound balance sheet
In the first half of 2017, profit before tax came to MEUR minus 8.0 (1-6/2016:
MEUR minus 26.8), profit after tax to MEUR minus 6.2 (1-6/2016: MEUR minus
16.9). Earnings per share were EUR minus 0.39 (1-6/2016: EUR minus 1.06).

The sound balance sheet structure allows SBO to respond timely to market
developments and invest where appropriate. SBO's equity ratio as at 30 June 2017
stood at 51.1 % (30 June 2016: 54.7 %), net debt at MEUR 62.8 (30 June 2016:
MEUR 59.7). Liquid funds at the end of the first half of the year were MEUR
177.6 (30 June 2016: MEUR 137.9), the operating cashflow was MEUR 6.3 (1-6/2016:
MEUR 18.5). Spending for property, plant and equipment and for intangible assets
(CAPEX) went up to MEUR 11.8 (1-6/2016: MEUR 5.9).

"Currently, we invest in North America where we are expanding our capacities in
the Oilfield Equipment segment. This helps us prepare for a continued
participation in the upswing", says SBO's CEO Grohmann.

Volatile market environment
Whereas the market is picking up sharply in North America, the international
environment is stagnating. This is illustrated by the projected spending for
exploration and production (E&P spending): It should go up, for the first time
since 2014, by around 8 % globally in 2017. While it is set to rise by 41 % in
North America, internationally, it is expected to decline further, even though
only by 1 %.

The oil price is exposed to increasing volatilities. On the back of rapidly
rising production volumes in North America, the oil price is coming under
mounting pressure. This, in turn, has a dampening effect on the industry outside
North America and the OPEC countries. What is ignored here is the fact that this
market has a share of 42 % in global crude supply. "High volatility does not
come as a surprise in a year of transition", adds SBO's CEO Grohmann. "North
America and OPEC countries deliver only somewhat more than half of the world's
total output. The other half comes from those countries still characterised by
many years of ongoing underinvestment. This is where spending for new
exploration projects needs to be ramped up massively in the years ahead, because
this is the only way to ensure that growing demand can be met over the medium
and long term".

Due to its optimised group structure, expansion of the Well Completion business
and successful research and development activities, SBO is already in a position
to benefit increasingly from the upswing in North America. "We continue to
implement our strategy systematically. Together with our target-oriented
spending projects, this will help us to take every advantage from the market
revival further down the road", concludes Mr. Grohmann.

Comparison of Key Performance Indicators (KPIs)

 ______________________________________________________________________________
|                  |                   |           1-6/2017|           1-6/2016|
|__________________|___________________|___________________|___________________|
|Sales_____________|_______________MEUR|______________135.7|_______________88.0|
|Earnings before   |                   |                   |                   |
|interest, taxes,  |                   |                   |                   |
|depreciation and  |               MEUR|               22.0|               -5.7|
|amortisation      |                   |                   |                   |
|(EBITDA)__________|___________________|___________________|___________________|
|EBITDA_margin_____|__________________%|_______________16.2|_______________-6.5|
|Earnings before   |                   |                   |                   |
|interest and taxes|               MEUR|               -3.6|              -36.2|
|                  |                   |                   |                   |
|(EBIT)____________|___________________|___________________|___________________|
|EBIT_margin_______|__________________%|_______________-2.6|______________-41.1|
|Profit_before_tax_|_______________MEUR|_______________-8.0|______________-26.8|
|Profit_after_tax__|_______________MEUR|_______________-6.2|______________-16.9|
|Earnings_per_share|________________EUR|______________-0.39|______________-1.06|
|Cashflow from     |                   |                   |                   |
|operating         |               MEUR|                6.3|               18.5|
|activities________|___________________|___________________|___________________|
|Liquid_funds______|_______________MEUR|______________177.6|______________137.9|
|Equity_ratio______|__________________%|_______________51.1|_______________54.7|
|Headcount_________|___________________|______________1,295|______________1,183|


SBO is the global market leader in high-precision components made of high-alloy
steel and a leading supplier of key components for the oilfield service
industry. The business focus is on non-magnetic drillstring components and high-
tech downhole tools for drilling and completing directional and horizontal
wells. As of 30 June 2017, SBO employed a workforce of 1,295 worldwide (31
December 2016: 1,200), thereof 310 in Ternitz / Austria and 633 in North America
(including Mexico).



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: a.boecskoer@sbo.co.at

Ildiko Füredi-Kolarik
Metrum Communications GmbH
Phone: +43 1 504 69 87 ext 351
e-mail: i.fueredi@metrum.at

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:      sboe@sbo.co.at
WWW:       http://www.sbo.at
ISIN:         AT0000946652
indexes:      WBI, ATX
stockmarkets: Wien
language:     English
 



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