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Quarterly Report 
 
Ternitz - November 26, 2020 
 
* Sales of MEUR 236.4, EBIT before one-off effects at MEUR 1.1 
* Operating cash flow increased to MEUR 81.3, net liquidity rose to MEUR 10.5 
  and liquid funds to MEUR 322 
 
The market environment of the oilfield service industry in the first three 
quarters of 2020 was characterized by the massive global repercussions of the 
COVID-19 pandemic. Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on 
the ATX leading index of the Vienna Stock Exchange, took off to a good start 
into the year and launched proactive measures early in order to mitigate the 
negative effects. The crisis-proven management team adjusted capacities as 
demanded by local requirements, scaled back capital spending and implemented 
cost savings as part of crisis management. A high liquidity and strong balance 
sheet support the company's position even in a challenging environment and 
ensure long-term success. 
 
However, due to the exceptional situation worldwide, sales and earnings declined 
compared to the same period of the previous year. In addition, SBO recognized 
non-cash impairments of MEUR 20.5 on assets at subsidiaries in North America as 
of 30 June 2020, which impacted earnings. SBO's sales generated in the first 
three quarters of the year came to MEUR 236.4, while profit / loss from 
operations (EBIT) before one-off effects remained positive at MEUR 1.1. EBIT 
after one-off effects totaled MEUR minus 19.8, and profit after tax arrived at 
MEUR minus 21.3. SBO generated an operating cashflow of MEUR 81.3 in the first 
nine months of 2020, resulting even in a net liquidity of MEUR 10.5. Gearing 
improved to minus 3.5 %. Liquid funds increased to MEUR 322.0 (31 December 2019: 
MEUR 265.2). 
 
CEO Gerald Grohmann: "The massive impact of COVID-19 on the global economy has 
not spared our industry. After the sharp decline in the first half of the year 
the oil markets have stabilized again. However, demand for crude oil was still 
too low for a sustainable recovery. In our cyclical business, we are crisis- 
tested and experienced in responding promptly to changing market conditions. We 
have taken targeted measures and adjusted promptly to the current environment. 
Our sound balance sheet and strong cash position help us to navigate safely 
through this crisis." 
 
Sales and earnings in line with the environment, strong liquidity base expanded 
SBO's sales in the first three quarters of 2020 amounted to MEUR 236.4 (1-9/ 
2019: MEUR 345.9, minus 31.6 %). Bookings dropped from the previous year and 
stood 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 (31 December 2019: MEUR 123.0). Earnings 
before interest, taxes, depreciation, and amortization (EBITDA) for the first 
three quarters of 2020 were MEUR 27.2, compared to MEUR 91.6 in 2019. The EBITDA 
margin was 11.5 % (1-9/2019: 26.5 %). 
 
Profit / loss from operations (EBIT) before one-off effects remained positive at 
MEUR 1.1 including foreign exchange losses, which had a negative impact on 
earnings. Impairments and restructuring expenses of approximately MEUR 21.0 
resulted in an EBIT after one-off effects of MEUR minus 19.8 (1-9/2019: MEUR 
54.5). As a result, SBO's profit / loss before tax amounted to MEUR minus 21.8 
(1-9/2019: MEUR 43.5), profit / loss after tax arrived at 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). 
 
SBO's equity arrived at MEUR 303.3 after the first three quarters of 2020 (31 
December 2019: MEUR 370.1). SBO's equity ratio decreased to 37.2 % (31 December 
2019: 42.3 %). The positive cashflows could turn the already low level of net 
debt in the amount of MEUR 20.1 as of 31 December 2019 even into a net liquidity 
of MEUR 10.5 as of 30 September 2020. Gearing improved further to minus 3.5 % 
(31 December 2019: 5.4 %). Liquid funds increased to MEUR 322.0 (31 December 
2019: MEUR 265.2). SBO additionally strengthened its already strong liquidity 
base by raising loans in the amount of MEUR 81.0 in the third quarter. Cashflow 
from operating activities rose to MEUR 81.3 in the first three quarters of 2020 
(1-9/2019: MEUR 74.7). Capital expenditure in property, plant and equipment and 
intangible assets (CAPEX, excluding rights of use) was reduced in line with the 
market environment and amounted to MEUR 13.9 (1-9/2019: MEUR 23.9). 
 
"The currently challenging industrial environment caused by the coronavirus 
crisis requires experience and a management approach based on long-term 
considerations. This is secured by our high liquidity, which we strengthened in 
the third quarter of 2020 through additional loans raised. While we could not 
prevent a decline in sales and earnings in the current exceptional market 
situation, our highly qualified employees are using all their expertise to deal 
with the effects of the global economic crisis as best as possible and to 
maintain our competitiveness over the long term", says CEO Grohmann. 
 
Bottom seems to be reached; significant recovery expected in the second half of 
2021 
The uncertain current situation makes it difficult to make reliable, robust 
forecasts for future economic development and the recovery of the oil market. 
However, there are clear indications that the industry has bottomed out, even 
though the international markets are running behind. Market perception is that 
the prevailing market conditions are going to continue over the upcoming 
quarters. Recovery should start to set in in the second half of 2021 at the 
latest, which will largely depend on how quickly the COVID-19 pandemic will be 
contained and global economic growth will be pointing upward again. 
 
"It seems that the bottom has been reached: The US rig count shows a slight 
increase and well completion activities are also picking up again. Recovery is 
expected to set in clearly in the second half of 2021, provided that the 
consequences of the coronavirus pandemic can be mitigated until then. Actively 
managing crises is one of our core competencies. While this is the focus of our 
attention, we do not lose sight of opportunities for the future because the next 
upturn is bound to come", says SBO CEO Gerald Grohmann. 
 
In the medium term, demand for oil and gas, and with it demand for SBO products 
and services, will rise again. In the long-term, there should even be a backlog 
in spending for exploration and production. It is an undisputed fact that oil 
and gas will continue to play a key role in supplying the world for a long time 
and cover more than 50 % of global energy demand 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 going forward. 
 
SBO's key performance indicators at a glance 
 ______________________________________________________________________________ 
|                  |                   |           1-9/2020|           1-9/2019| 
|__________________|___________________|___________________|___________________| 
|Sales             |               MEUR|              236.4|              345.9| 
|__________________|___________________|___________________|___________________| 
|Earnings before   |                   |                   |                   | 
|interest, taxes,  |                   |                   |                   | 
|depreciation and  |               MEUR|               27.2|               91.6| 
|amortization      |                   |                   |                   | 
|(EBITDA)          |                   |                   |                   | 
|__________________|___________________|___________________|___________________| 
|EBITDA margin     |                  %|               11.5|               26.5| 
|__________________|___________________|___________________|___________________| 
|Profit / loss from|                   |                   |                   | 
|operations (EBIT) |                   |                   |                   | 
|before impairments|               MEUR|                1.1|               55.6| 
|and restructuring |                   |                   |                   | 
|measures          |                   |                   |                   | 
|__________________|___________________|___________________|___________________| 
|EBIT margin       |                  %|                0.5|               16.1| 
|__________________|___________________|___________________|___________________| 
|Profit / loss from|                   |                   |                   | 
|operations (EBIT) |                   |                   |                   | 
|after impairments |               MEUR|              -19.8|               54.5| 
|and restructuring |                   |                   |                   | 
|measures          |                   |                   |                   | 
|__________________|___________________|___________________|___________________| 
|Profit / loss     |                   |                   |                   | 
|before tax        |               MEUR|              -21.8|               43.5| 
|__________________|___________________|___________________|___________________| 
|Profit / loss     |                   |                   |                   | 
|after tax         |               MEUR|              -21.3|               26.6| 
|__________________|___________________|___________________|___________________| 
|Earnings per share|                EUR|              -1.35|               1.67| 
|__________________|___________________|___________________|___________________| 
|Cashflow from     |                   |                   |                   | 

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November 26, 2020 02:00 ET (07:00 GMT)