Schoeller-Bleckmann Oilfield Equipment AG: Preliminary result for 2017

Ternitz/Vienna, 16 January 2018. The 2017 financial year of Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the ATX market of the Vienna Stock Exchange, was characterised by the upswing seen in North America. The strategic expansion of the Well Completion business the year before therefore turned out to be the perfect choice to make. Against the continued weak market environment internationally, SBO closed financial year 2017 on a clearly positive operating result.

Sales went up by 76 %, to MEUR 322 (2016: 183.0). Bookings even doubled to MEUR 340 (2016: MEUR 169.3), up by 101 %. The operating result (EBIT) came to MEUR 25, following a historically negative result of MEUR minus 58.3 in 2016. Profit before tax stood at MEUR minus 70. As already reported in October, rising profit expectations for Downhole Technology, a subsidiary acquired in the second quarter of 2016, required to include a one-off expense posting for the shares of minority shareholders (option) having an effect on profit, but not on cash, in the consolidated income statement of SBO in the third quarter of 2017. Excluding option revaluations, profit before tax was MEUR 17, and the respective result of the year before MEUR minus 62.3.

"Our expectations that North America would experience noticeable market recovery were met fully. SBO's sales and operating result have developed nicely. Bookings even doubled in a year on year comparison. As a result, SBO has achieved the turnaround operationally and brought the result clearly back into positive territory", comments Gerald Grohmann, CEO of SBO. "The negative result from the option revaluation at Downhole Technology is only a short-term drawback, because - as majority shareholder - we will benefit, at the same time, from the strong profits generated by our subsidiary." Grohmann concludes:”Due to the positive operating development of the company and the prevailing market environment we will propose payment of a dividend of 50 cents per share for the year 2017.”

Note: All figures relating to 2017 are preliminary and rounded.

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 1,426 worldwide (31 December 2016: 1,200), thereof 309 in Ternitz / Austria and 757 in North America (including Mexico).

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