EANS-News: Schoeller-Bleckmann Oilfield Equipment AG / Results 1-3. Quarter 2020: High liquidity and solid capital resources strengthen SBO’s position in a challenging environment

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Quarterly report

Ternitz – 26. November 2020

  • Sales of MEUR 236.4, EBIT before one-off items held at MEUR 1.1
  • Operating cash flow increased to MEUR 81.3, net liquidity increased to MEUR 10.5 and liquid funds increased to MEUR 322

The market environment for the oilfield service industry in the first three quarters of 2020 was characterized by the massive global effects of the COVID-19 pandemic. Schoeller-Bleckmann Oilfield Equipment AG (SBO), which is listed in the leading ATX index of the Vienna Stock Exchange, had a good start to the year and took active measures early on to reduce the negative effects. The crisis-experienced management team adjusted capacities according to local requirements, cut back investments and implemented cost savings as part of crisis management. A high level of liquidity and a solid balance sheet support the company’s position even in a challenging environment and ensure long-term success.

However, due to the exceptional global situation, sales and earnings declined compared to the same period in the previous year. In addition, as of June 30, 2020, SBO carried out non-cash impairment losses on assets at subsidiaries in North America in the amount of MEUR 20.5, which had an impact on earnings. The turnover of SBO in the first three quarters of the year was MEUR 236.4. EBIT before one-off items remained positive at MEUR 1.1. The EBIT after one-off effects was MEUR minus 19.8, and the result after taxes was MEUR minus 21.3. SBO generated an operating cash flow of MEUR 81.3 in the first nine months of 2020. As a result, the company was even able to report a net liquidity of MEUR 10.5. Gearing improved to minus 3.5%. The cash and cash equivalents rose to MEUR 322.0 (December 31, 2019: MEUR 265.2).

SBO CEO Gerald Grohmann says: “The massive effects of COVID-19 on the global economy have not spared our industry either. After the abrupt downturn in the first half of the year, the oil markets have stabilized. However, the demand for crude oil was essential for a sustainable recovery Still too low. In our cyclical business we are crisis-tested and are trained to react quickly to changed market conditions. We have taken targeted measures and adapted quickly to the current environment. Our solid balance sheet and strong cash position support us in this, certainly steer through this crisis. “

Sales and earnings correspond to the environment, strong liquidity base expanded SBO’s sales amounted to MEUR 236.4 in the first three quarters of 2020 (1-9 / 2019: MEUR 345.9, minus 31.6%). Incoming orders decreased compared to the previous year and remained at MEUR 184.0 (1-9 / 2019: MEUR 376.5, minus 51.1%), the order backlog at the end of September 2020 was MEUR 69.7 (December 31, 2019:
MEUR 123.0). Earnings before interest, taxes, depreciation and amortization (EBITDA) were MEUR 27.2 in 2020 after MEUR 91.6 in the first three quarters of 2019, the EBITDA margin was 11.5% (1-9 / 2019: 26.5 %). The operating result (EBIT) before one-off items remained positive at MEUR 1.1. This includes exchange rate losses, which had a negative impact on the result. Impairments and restructuring expenses of MEUR 21.0 led to an EBIT after one-off effects of MEUR minus 19.8 (1-9 / 2019: MEUR 54.5). As a result, SBO’s earnings before taxes came to MEUR minus 21.8 (1-9 / 2019: MEUR 43.5), earnings after taxes were MEUR minus 21.3 (1-9 / 2019: MEUR 26.6 ). Earnings per share in the first three quarters of 2020 were EUR minus 1.35 (1-9 / 2019: EUR 1.67).

After the first three quarters of 2020, SBO’s equity was MEUR 303.3 (December 31, 2019: MEUR 370.1). SBO’s equity ratio decreased to 37.2% (December 31, 2019: 42.3%). Thanks to the positive cash flows, the already low net debt of MEUR 20.1 as of December 31, 2019 was even turned into net liquidity of MEUR 10.5 as of September 30, 2020. Gearing improved further to minus 3.5% (December 31, 2019: 5.4%). The cash and cash equivalents increased to MEUR 322.0 (December 31, 2019: MEUR 265.2). With the additional borrowing of MEUR 81.0 in the third quarter, SBO additionally secured the company’s already strong liquidity base. The operative cash flow increased in the first three quarters of 2020 to MEUR 81.3 (1-9 / 2019: MEUR 74.7). Investments in property, plant and equipment and intangible assets (CAPEX, without rights of use) were reduced in line with the market environment and came to MEUR 13.9 (1-9 / 2019: MEUR 23.9).

“The current tense industrial environment due to the corona crisis requires experience and a long-term management approach. We secure this with our high liquidity, which we have further strengthened in the third quarter through additional borrowing. In the current exceptional situation, we have not been able to reduce sales and earnings Our highly qualified team is routinely working to deal with the effects of the global economic crisis in the best possible way and to maintain our competitiveness in the long term, “says CEO Grohmann.

The valley seems to have been reached, significant recovery expected in the second half of 2021 The uncertain current situation makes it difficult to make reliable, reliable forecasts for future economic development and the recovery of the oil market. However, there are clear signs that industry has bottomed out, even if international markets are still lagging behind. The market expectation is that the prevailing market conditions will continue in the coming quarters. The recovery should start in the second half of 2021 at the latest. However, this will largely depend on how quickly the COVID-19 pandemic is contained and how global economic growth picks up again.

“The valley seems to have already been reached: The US rig count has increased slightly and well completion activities are also picking up again. A significant recovery is expected for the second half of 2021, provided the effects of the corona pandemic can be up to The active management of crises is one of our core competencies. This is what we concentrate on, but we do not lose sight of opportunities for the future. Because the next upswing is sure to come “, says SBO CEO Gerald Grohmann.

In the medium term, the demand for oil and gas and thus also for SBO products and services will increase again. In the long term, there should even be some catching up to do with investments in exploration and production. It is undisputed that oil and gas will play a key role in supplying the world for a long time to come and will cover more than 50% of the world’s energy needs for decades to come. With its innovative products and services, SBO is ready to contribute to the safe and sustainable production of oil and gas in the future.

The most important SBO key figures at a glance

______________________________________________________________________________ | | | 1-9 / 2020 | 1-9 / 2019 | | __________________________ | ________________ | ________________ | _________________ | | Sales | MEUR | 236.4 | 345.9 | | __________________________ | ________________ | ________________ | _________________ | | Earnings before interest, | | | | | Taxes and | MEUR | 27.2 | 91.6 | | Depreciation (EBITDA) | | | | | __________________________ | ________________ | ________________ | _________________ | | EBITDA margin | % | 11.5 | 26.5 | | __________________________ | ________________ | ________________ | _________________ | | Earnings before interest and | | | | | Taxes (EBIT) | | | | | before impairment and | MEUR | 1.1 | 55.6 | | Restructuring measures | | | | | __________________________ | ________________ | ________________ | _________________ | | EBIT margin | % | 0.5 | 16.1 | | __________________________ | ________________ | ________________ | _________________ | | Earnings before interest and | | | | | Taxes (EBIT) | | | | | after impairments and | MEUR | -19.8 | 54.5 | | Restructuring measures | | | | | __________________________ | ________________ | ________________ | _________________ | | Earnings before taxes | MEUR | -21.8 | 43.5 | | __________________________ | ________________ | ________________ | _________________ | | Profit after tax | MEUR | -21.3 | 26.6 | | __________________________ | ________________ | ________________ | _________________ | | Earnings per share | EUR | -1.35 | 1.67 | | __________________________ | ________________ | ________________ | _________________ | | Cash flow from the current | | | | | Business activity | MEUR | 81.3 | 74.7 | | __________________________ | ________________ | ________________ | _________________ | | Liquid funds as of 30. | | | | | September 2020 / 31. | MEUR | 322.0 | 265.2 | | December 2019 | | | | | __________________________ | ________________ | ________________ | _________________ | | Net liquidity as of 30. | | | | | September 2020 / 31. | MEUR | 10.5 | -20.1 | | December 2019 | | | | | __________________________ | ________________ | ________________ | _________________ | | Employees as of 30. | | | | | September 2020 / 31. | | 1.150 | 1.535 | | December 2019 | | | | | __________________________ | ________________ | ________________ | _________________ |

SBO is a leading global provider of products and solutions used by the oil and gas industry for directional drilling and well completion. SBO is the world market leader in the production of high-precision components made from non-magnetic, high-alloy stainless steels. The company manufactures these specifically to meet the requirements of customers in the oilfield service industry. At the same time, SBO is a leading supplier of highly efficient drilling tools and equipment for the oil and gas industry. The company is thus successfully positioned in technologically demanding, profitable niches. As of September 30, 2020, SBO employed 1,150 people worldwide (December 31, 2019: 1,535), of which 370 in Ternitz / Austria and 462 in North America (including Mexico).

End of the announcement euro adhoc

Issuer: Schoeller-Bleckmann Oilfield Equipment AG
Hauptstrasse 2
A-2630 Ternitz
Phone: 02630/315110
FAX: 02630/315101
Email: sboe@sbo.co.at
WWW: http://www.sbo.at
ISIN: AT0000946652
Indizes: ATX, WBI
Exchanges: Vienna
Language: German

Inquiries & contact:

Andreas Böcskör, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
Tel: +43 2630 315 DW 252, Fax: DW 101
Email: a.boecskoer@sbo.co.at

Ildiko Füredi-Kolarik
Metrum Communications GmbH
Tel: +43 1 504 69 87 DW 351
E-Mail: i.fueredi@metrum.at



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