Half year results 2021: SBO back on growth track
· Continuous increase in sales and earnings for the last three quarters
· Operating result strongly improved to MEUR 8.9, EBITDA margin of 19.3 % considerably above last year's level
· Profit after tax clearly positive again at MEUR 4.2
Ternitz, August 19, 2021. The first half of 2021 was positive for Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (SBO), which is listed on the ATX leading index of the Vienna Stock Exchange. As expected, the recovery that had begun in the fourth quarter of 2020 continued gradually but steadily. The upward movement was evident across all regional markets and in all key figures. SBO’s sales in the first six months of the year arrived at MEUR 129.5. EBIT was clearly positive at MEUR 8.9, the EBIT margin improved to 6.9 %, up from the previous year’s figure. Profit after tax stood at MEUR 4.2. Net liquidity came to MEUR 20.1, gearing was minus 6.6 %. The book-to-bill ratio, which compares the number of orders received with sales and serves as an indicator of medium-term development, remained consistently above 1.
CEO Gerald Grohmann says: “The global economy gradually rebounded in the first half of 2021. As a result, demand for energy increased hand in hand with demand for our products. While we have not yet reached pre-crisis levels, we are observing steady growth. We are heading in the right direction, and our operating result has returned to the profit zone. Our current expectation is that this positive development will continue at a similar pace in the second half of the year and gain further momentum in the coming year."
Steady growth, distinct improvement of business results
SBO’s bookings in the first six months of 2021 amounted to MEUR 137.2, almost matching the level of first half 2020, whose first quarter had been still largely unaffected by the COVID-19 pandemic (1-6/2020: MEUR 144.5). Sales have gone up constantly since the low point of the crisis in the third quarter of 2020, rising from MEUR 51.9 in Q3 2020 to MEUR 54.7 in Q4 2020 and MEUR 59.3 in Q1 2021 to finally MEUR 70.2 in Q2 2021. Sales generated in the first half of 2021 totaled MEUR 129.5 (1-6/2020: MEUR 184.5). The order backlog at the end of June 2021 was MEUR 68.4 (31 December 2020: MEUR 65.2).
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first half of 2021 stood at MEUR 25.0 (1-6/2020: MEUR 28.5), while the EBITDA margin went up to 19.3 % (1-6/2020: 15.4 %). Profit from operations (EBIT) improved significantly compared to the previous year and arrived at MEUR 8.9 (1-6/2020: MEUR minus 8.9). Profit before tax climbed to MEUR 6.6 (1-6/2020: MEUR minus 10.0), while profit after tax improved to MEUR 4.2 (1-6/2020: MEUR minus 12.0). Earnings per share in the first half of 2021 were EUR 0.27 (1-6/2020: EUR minus 0.76).
"Our expectations of last fall have been confirmed: we have seen an upward trend since the fourth quarter of 2020 and expect the trend to continue. We have grown every quarter and delivered a stronger result and higher margins although sales figure was down on the previous year. This demonstrates the success of our consistently implemented cost and efficiency programs", comments CEO Gerald Grohmann on the 2021 half-year results.
SBO’s equity increased to MEUR 305.5 in the first half of 2021 (31 December 2020: MEUR 287.0). SBO’s equity ratio rose to 38.8 % (31 December 2020: 36.9 %). Net liquidity went up to MEUR 20.1 (31 December 2020: MEUR 9.5). Gearing further decreased to minus 6.6 % (31 December 2020: minus 3.3 %). Liquid funds came to MEUR 307.5 (31 December 2020: MEUR 314.0). Cashflow from operating activities was MEUR 12.0 in the first half of 2021 (1-6/2020: MEUR 50.6). Capital expenditure for property, plant and equipment, and intangible assets (CAPEX, excluding rights of use) amounted to MEUR 9.7 (1-6/2020: MEUR 10.6).
Outlook remains positive, stronger upward movement expected in 2022
The global recovery that has set in in the first half of 2021 appears to be stable from an economic perspective. The International Monetary Fund (IMF) expects the global economy to grow by 6.0 % in 2021, following a decline of 3.2 % in 2020.
"We expect the gradual growth of the global economy and the associated demand for our products to continue throughout the rest of the year," says CEO Gerald Grohmann and adds: "As announced, 2021 is evolving into a year of transition, while 2022 should see increasing momentum."
With its high-quality products and technologies, the SBO Group ensures a more efficient and thus more environmentally friendly supply of energy. While oil and gas will remain the most important energy sources for a long time to come, the company is responding to the change in environmental conditions by applying its sustainable growth strategy. In the process, SBO is driving forward diversification into new industries and fields of application to broaden its technology offering to additional industrial sectors. Furthermore, SBO strives toward structural improvement of its energy efficiency and reduction of its carbon emissions.
SBO's key performance indicators at a glance
|
|
|
1-6/2021
|
1-6/2020
|
|
Sales
|
MEUR
|
129.5
|
184.5
|
|
Earnings before interest, taxes, depreciation and amortization (EBITDA)
|
MEUR
|
25.0
|
28.5
|
|
EBITDA margin
|
%
|
19.3
|
15.4
|
|
Profit from operations before impairments and restructuring measures
|
MEUR
|
8.9
|
12.4
|
|
EBIT margin before impairments and
restructuring measures
|
%
|
6.9
|
6.7
|
|
Profit / loss from operations after impairments and restructuring measures
|
MEUR
|
8.9
|
-8.9
|
|
EBIT margin
|
%
|
6.9
|
-4.8
|
|
Profit / loss before tax
|
MEUR
|
6.6
|
-10.0
|
|
Profit / loss after tax
|
MEUR
|
4.2
|
-12.0
|
|
Earnings per share
|
EUR
|
0.27
|
-0.76
|
|
Cashflow from operating activities
|
MEUR
|
12.0
|
50.6
|
|
Liquid funds as at 30 June 2021 / 31 December 2020
|
MEUR
|
307.5
|
314.0
|
|
Net liquidity as at 30 June 2021 / 31 December 2020
|
MEUR
|
20.1
|
9.5
|
|
Headcount as at 30 June 2021 / 31 December 2020
|
|
1,172
|
1,131
|
SCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesellschaft (SBO) is the global market leader in the production of high-precision components made of non-magnetic, high-alloy stainless steels. The Group is equally recognized worldwide for its high-efficiency drilling tools and equipment for the oil and gas industry. The Group employs a workforce of more than 1,100 worldwide and is successfully positioned in technologically demanding, profitable niches. Information on the “Quality First”-based growth strategy and sustainable management (ESG) is available in the annual report at https://www.sbo.at/publikationen.
Contact:
Andreas Böcskör, Group Communications
Schoeller-Bleckmann Oilfield Equipment AG
Tel: +43 2630 315 DW 252, Fax: DW 101
E-Mail: a.boecskoer@sbo.co.at
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