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Ternitz/Vienna, 20 March 2013. Schoeller-Bleckmann Oilfield Equipment AG (SBO),
listed on the ATX market of the Vienna Stock Exchange, posted double digit sales
and profit increases for the third time in a row in fiscal 2012. Since the 2009
crisis year, SBO has thus doubled sales and more than quadrupled its operating
income. The Executive Board proposes to pay a dividend of EUR 1.50 per share for
2012 (following EUR 1.20).
Consolidated sales of MEUR 512.1 in 2012 improved by 25.3 % from 2011 (MEUR
408.6). Earnings before interest, taxes, depreciation and amortisation (EBITDA)
arrived at MEUR 159.9, up 27.9 % from last year's MEUR 125.0. Earnings before
interest and taxes (EBIT) were MEUR 120.3, up 33.3 % from MEUR 90.2 in 2011. The
fiscal 2012 EBITDA margin grew from 30.6 % to 31.2 %, and the EBIT margin from
22.1 % to 23.5 %. Annual profit after tax arrived at MEUR 76.2, up 42.7 % from
MEUR 53.4 in 2011. Total bookings amounting to MEUR 471.4 (following MEUR 460.5
in 2011) reached a very high level.
Due to the new record result, the Executive Board will propose to the
forthcoming Annual General Meeting to increase the dividend to EUR 1.50
(following EUR 1.20 last year) per share. Based on the current share price this
represents a dividend yield of approximately 2 %.
"In 2012 SBO fully profited from the growth of the oilfield service industry",
says Gerald Grohmann, CEO of SBO, explaining the new record result. "It was
mainly the demand for high-tech equipment used for complex applications - the
core business of SBO - that was rising sharply, as newly discovered oil and gas
fields are located in deeper and more challenging rock formations, involving
constantly increasing technological complexity. Further drivers of growth for
SBO were deepwater and ultra-deepwater wells and the dynamic rise in the number
of horizontal shale gas and shale oil wells."
Market development 2012
Owing to continued growth in demand for oil and gas the oilfield service
industry was largely unaffected by the global economic slowdown in 2012.
According to the International Energy Agency (IEA) average global demand for oil
in 2012 amounted to 89.8 million barrels per day, increasing by 1 million
barrels per day (approx. 1.1 %) from the level of 2011. The primary drivers of
this development were the emerging markets.
The 2012 average rig count, the parameter of globally active drilling rigs, was
3518 units, representing an increase of 1.5 % from the average number of
operating rigs of 3465 units in 2011.
Business performance 2012
Due to exceptionally strong order volumes SBO's capacity utilisation rates were
particularly high in the first half of the year. It was mainly the production
company located in Ternitz/Austria that stood out by its operating performance.
Peaks in orders were accommodated both by hiring additional personnel mainly in
Austria and the US and working additional shifts and overtime.
All product groups of SBO benefited from the generally sound industry cycle in
2012, with the product group of high-precision components delivering
particularly encouraging results.
Based on its long-term growth perspectives, SBO's total additions to tangible
fixed assets in fiscal 2012 amounted to MEUR 53.1 (following MEUR 36.8 in the
year before), with a focus on expanding the production site in Ternitz/Austria,
where currently a new production facility is built for a total of EUR 54
million. Planning and foundation works were started in the first quarter of
2012. The building shell is scheduled for completion in mid-2013. One year
later, in mid-2014, the expansion project in Ternitz should be completed.
Further capital was spent for expansions of the company's US sites.
Moreover, the drilling motor fleet was extended, and the number of downhole
circulation tools was increased to meet growing demand.
The SBO share
In October 2012 the SBO share reached its new all-time high of EUR 83.15, at the
same time representing the annual high of the ATX-listed share. Over the year,
the share developed positively and climbed by 15.2 % to EUR 79.29 per share at
the end of 2012.
According to the International Energy Agency (IEA) the moderate economic
development in the Western industrialised nations will have only little impact
on the rising global consumption of energy. As in the years before, the expected
growth of oil demand in 2013 will be driven by the emerging markets.
What SBO has recently observed is that some customers try to optimise their
capital expenditures and inventories as they tend to invest more in repairing
tools than purchasing new equipment. This behaviour was also reflected in the
bookings SBO received at the beginning of 2013. In the past such actions taken
by customers always were of a transitory nature.
As the fundamental data have remained intact SBO expects to see a continued
positive industry environment. Market analyses assume that global exploration
and production spending will grow by just under 6.6 % to USD 644 billion in 2012
(following USD 604 billion in 2012). An oil price above USD 100 per barrel
(Brent) and a still low OPEC-spare capacity of around 3 mb/d contribute to a
favourable spending climate. Hence, new projects for developing conventional and
unconventional oil and gas fields and spending for improved oil recovery from
existing oil fields will further drive demand for high-precision equipment.
SBO is well prepared for each market environment. Despite its ongoing spending
for growth the company is based on a sound balance sheet, low debt and
attractive cash-flow. The capital investment programme will be a key component
for SBO to secure, for the years ahead, global market leadership in the business
units in which SBO operates and to ensure long-term growth of SBO.
Key financial figures: 2012 2011 Change in %
Sales MEUR 512.1 408.6 + 25.3
(EBITDA) MEUR 159.9 125.0 + 27.9
EBITDA margin % 31.2 30.6 -
interest and taxes
(EBIT) MEUR 120.3 90.2 + 33.3
EBIT margin % 23.5 22.1 -
Profit before tax MEUR 110.1 78.2 + 40.8
Profit after tax MEUR 76.2 53.4 + 42.7
Cash-flow from profit MEUR 118.4 91.7 + 29.2
Earnings per share EUR 4.76 3.33 + 42.7
Dividend per share EUR 1.50* 1.20 + 25.0
Headcount No. 1591 1459 + 9.0
SBO financial calendar 2013
25 April 2013 Annual General Meeting
8 May 2013 Ex-dividend day, dividend payment date
23 May 2013 Result Q1 / 2013
22 August 2012 Result H1 / 2013
21 November 2012 Result Q3 / 2013
end of ad-hoc-announcement
Schoeller-Bleckmann Oilfield Equipment AG is the global market leader in
high-precision components for the oilfield service industry. The business focus
is on non-magnetic drillstring components for directional drilling. As of 31
December 2012, SBO has employed a workforce of 1591 worldwide (31 December 2011:
1459), thereof 460 in Ternitz/Austria and 651 in North America (including
Further inquiry note:
MMag Florian Schütz, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz/Austria, Hauptstrasse 2
Tel.: +43 2630 315-251
Fax: +43 2630 315-501
end of announcement euro adhoc
issuer: Schoeller-Bleckmann Oilfield Equipment AG
sector: Oil & Gas - Upstream activities
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien