EANS-News: Schoeller-Bleckmann Oilfield Equipment AG operating result turns clearly positive in 2017

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Annual Result/Annual Report

Ternitz/Wien. -
- SBO benefits from strategic positioning in North America
- Bookings doubled to MEUR 342.0, sales up by 77.2 % to MEUR 324.2
- US acquisition exceeds expectations as reported, reflected in the financial
result

Ternitz/Vienna, 21 March 2018. In the 2017 financial year, the market
environment of the oilfield service industry recovered appreciably, with North
America confirming its leading role as demand picked up sharply there.
Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the ATX market of the
Vienna Stock Exchange, in the past years strengthened its positioning in the
North American countries proactively, invested specifically in the Well
Completion business, expanding it considerably by acquiring Downhole Technology
in the second quarter of 2016. While the international market environment
remained in stagnation, SBO started to benefit substantially from its strong
position in North America in the 2017 financial year. The company grew sales by
77.2 %, more than doubled bookings by 102.1 % and brought the operating result
back to clearly positive territory. In the second half of the year, the EBITDA
margin already exceeded the long-term average.

"Consistent implementation of our strategy made us benefit fully from the
upswing in North America and generate a clearly positive operating result in
year 2017. Although the downturn seen in the years 2015 and 2016 was much deeper
than in previous cycles, we took pinpoint measures aimed to perfectly prepare
the company for the next upswing. After years of crisis, we have clearly
demonstrated that we know how to take opportunities on our markets very
efficiently and gain momentum immediately", comments Gerald Grohmann, CEO of
SBO.

Operating turnaround achieved
Bookings received by SBO climbed by 102.1 %, to MEUR 342.0 (2016: MEUR 169.3).
Sales went up by 77.2 %, to MEUR 324.2 (2016: MEUR 183.0). As a result, the
book-to-bill ratio, which measures the number of orders coming in compared to
sales and serves as an indicator of medium-term development, was greater than 1.
The order backlog at the end of 2017 was MEUR 37.6 (31 December 2016: MEUR
20.5).

The increase in sales is reflected in the operating result of SBO. Earnings
before interest, taxes, depreciation, and amortization (EBITDA) rose from MEUR
minus 2.5 in 2016 to MEUR 74.7, including one-off income from completed
restructuring measures amounting to MEUR 1.9. Earnings before interest and taxes
(EBIT) generated in 2017 were MEUR 25.6, following MEUR minus 58.3 in 2016. The
EBITDA margin arrived at 23.0 % (2016: minus 1.4 %), and the EBIT margin at 7.9
% (2016: minus 31.9 %).

US subsidiary exceeds expectations
At the same time, a one-off effect impacts the financial result: As reported in
October, the strong development and thus rising profit expectations for SBO's
US-based subsidiary Downhole Technology required a one-off expense posting of
MEUR 90.2, that has an effect on profit, but not on cash, for the existing put/
call option, and is included in the financial result of the consolidated profit
and loss statement (P&L) of SBO.

Therefore, the financial result for full year 2017 was MEUR minus 95.4 (2016:
MEUR 13.3). The previous year's result had included a one-off income from the
revaluation of option commitments amounting to MEUR 17.2. Profit before tax thus
was MEUR minus 69.8 (2016: MEUR minus 45.1). Without considering option
revaluations, profit before tax was MEUR 17.9, and the respective result of the
year before MEUR minus 62.3. Profit after tax came to MEUR minus 54.4 (2016:
MEUR minus 28.0). Earnings per share were EUR minus 3.41 (2016: EUR minus 1.75).
The respective earnings per share before option revaluations were EUR 0.93 in
2017 (2016: EUR minus 2.93).

"Due to our sound operating performance we look back on a successful year 2017.
We have launched excellent products in the market that are in great demand again
as the upswing has set in. The fact that the strong growth of our subsidiary
Downhole Technology has driven up its value, which required an expense posting,
is further proof that we acquired the company at the right point in time", adds
Mr. Grohmann.

Sound balance sheet
The balance sheet structure of SBO remains sound: At the end of 2017, the
gearing ratio stood at 15.7 % (31 December 2016: 12.0 %), the equity ratio at
42.9 % (31 December 2016: 53.1 %), and net debt at MEUR 50.7 (31 December 2016:
MEUR 51.0). Liquid funds totalled MEUR 166.0 (2016: MEUR 193.5), the operating
cashflow MEUR 44.6 (2016: MEUR 31.3), and free cashflow MEUR 16.6 (2016: MEUR
minus 69.1).

Spending for property, plant and equipment and intangible assets (CAPEX) went to
MEUR 32.1 (2016: MEUR 13.0), including spending for expanding production
capacities in North America. Purchase commitments for expenditure in property,
plant and equipment were MEUR 1.2 (2016: MEUR 0.1).

The Executive Board will propose to the Annual General Meeting to pay a dividend
of EUR 0.50 per share for the 2017 financial year.

Innovations for the future
SBO vigorously pursues its research and development activities. In 2017,
innovations such as dissolvable balls in the Well Completion business and a new
product family within the range of circulation tools were launched. "We are
constantly working on innovative products and services offering new options to
our customers. This is how we shape the future of our industry as frontrunner",
says Mr. Grohmann. "We expect North America to remain the leading driver of
growth in 2018. At the same time, the international market should recover
gradually. This is what we prepared for proactively, and we will exploit every
opportunity to participate fully in the upswing."

Comparison of SBO's key performance indicators
______________________________________________________________________________
| | | 2017| 2016|
|__________________|___________________|___________________|___________________|
|Sales_____________|_______________MEUR|______________324.2|______________183.0|
|Earnings before | | | |
|interest, taxes, | | | |
|depreciation and | MEUR| 74.7| -2.5|
|amortization | | | |
|(EBITDA)__________|___________________|___________________|___________________|
|EBITDA_margin_____|__________________%|_______________23.0|_______________-1.4|
|Earnings before | | | |
|interest and taxes| MEUR| 25.6| -58.3|
|(EBIT)____________|___________________|___________________|___________________|
|EBIT_margin_______|__________________%|________________7.9|______________-31.9|
|Profit before tax | | | |
|(before option | MEUR| 17.9| -62.3|
|revaluation)______|___________________|___________________|___________________|
|Profit before tax | | | |
| | | | |
| | MEUR| -69.8| -45.1|
| | | | |
|__________________|___________________|___________________|___________________|
|Profit_after_tax__|_______________MEUR|______________-54.4|______________-28.0|
|Earnings per share| | | |
| | EUR| 0.93| -2.93|
|(before option | | | |
|revaluation)______|___________________|___________________|___________________|
|Earnings_per_share|________________EUR|______________-3.41|______________-1.75|
|Cashflow from | | | |
|operating | MEUR| 44.6| 31.3|
|activities________|___________________|___________________|___________________|
|Liquid_funds______|_______________MEUR|______________166.0|______________193.5|
|Headcount_________|___________________|______________1,432|______________1,200|

SBO is a leading supplier of tools and equipment for directional drilling and
well completion applications and the global market leader in the manufacture of
high-precision components made of non-magnetic steel. The product offering
ranges from complex customer-specific components for the oilfield service
industry to high-efficiency solutions and products for the oil and gas industry.
As of 31 December 2017, SBO employed a workforce of 1,432 worldwide (31 December
2016: 1,200), thereof 309 in Ternitz / Austria and 764 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: ATX, WBI
stockmarkets: Wien
language: English

Original-Content von: Schoeller-Bleckmann Oilfield Equipment AG, übermittelt durch news aktuell