SBO: Earnings 2021 show strong return to the profit zone

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SBO: Earnings 2021 show strong return to the profit zone

· Clear turnaround after crisis year 2020, continuous growth since the low in Q3 2020

· Operating strength: EBITDA more than doubles to MEUR 60, EBIT climbing to MEUR 28

· Profit after tax rises to MEUR 21, after MEUR minus 21.7 in 2020

· Dividend of EUR 0.75 per share proposed

· Strategy 2030: Building a green tech segment in addition to the existing business

· Implications of the Russia-Ukraine conflict for energy markets not fully assessable yet, little effect on SBO business at the moment

Ternitz/Vienna, 17 March 2022. Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the leading ATX index of the Vienna Stock Exchange, continued its course of growth in the 2021 financial year. Following the dramatic pandemic-related slump in the global economy in the second quarter of 2020, SBO returned to steady and sequential quarterly growth. SBO increased bookings and earnings significantly in 2021, and was matching the sales level reported in 2020, whose first quarter was still largely unaffected by the pandemic and therefore produced strong sales figures. SBO Group sales arrived at MEUR 292.8, following MEUR 291.2 in 2020. Bookings climbed by close to 50 % to MEUR 343.3 (2020: MEUR 235.1), and the order backlog at the end of 2021 was MEUR 111.7 (31 December 2020: MEUR 65.2).

Operating profits were improved substantially: Earnings before interest, taxes, depreciation and amortization (EBITDA) more than doubled to MEUR 60.0 (2020: MEUR 27.1). Profit from operations (EBIT) returned to positive territory and came to MEUR 28.2 in 2021, following a loss of MEUR minus 28.0 in 2020. The EBITDA margin rose to 20.5 % (2020: 9.3 %), and the EBIT margin came to 9.6 % (2020: minus 9.6 %).

Having gone up substantially, profit before and after tax was clearly positive in 2021: profit before tax climbed to MEUR 23.4 (2020: MEUR minus 31.2), profit after tax came to MEUR 21.0 (2020: MEUR minus 21.7). Earnings per share were EUR 1.33 (2020: EUR minus 1.38).

"After the involuntary braking maneuver that the coronavirus pandemic in 2020 required also from our company, we were able to shift up a few gears again last year. Our operating performance was strong, producing favorable earnings growth which brought us back to clearly positive territory again", comments Gerald Grohmann, CEO of SBO, on the 2021 business results.

Strong equity and high liquidity provide cushion for investments

Equity of the SBO Group increased by around 19 % in 2021 and arrived at MEUR 340.9 (2020: MEUR 287.0). The equity ratio improved to 42.3 % (2020: 36.9 %). Liquid funds came to MEUR 291.8 (2020: MEUR 314.0). Net liquidity of MEUR 9.9 arrived at a similar level year-on-year (2020: net liquidity MEUR 9.5), and gearing stood at minus 2.9 % as at 31 December 2021 (2020: minus 3.3 %).

The cashflow from operating activities came to MEUR 22.9 (2020: MEUR 94.3), reflecting rising business volumes and the associated increase in working capital. Capital expenditure on property, plant and equipment and intangible assets (CAPEX) went up to MEUR 19.4 (2020: MEUR 16.2), and purchase commitments for property, plant and equipment amounted to MEUR 3.2 (2020: MEUR 3.7).

The Executive Board will propose to the Annual General Meeting on 28 April 2022 to distribute a dividend for the financial year 2021 of EUR 0.75 per share (2020: no dividend payment).

SBO Group presents new Strategy 2030

In the past months, the SBO Group defined its Strategy 2030 for the way to the energy future. The Group aims to remain at the forefront of shaping the future of the industry also in the coming decades, setting itself the target to contribute both to energy supply security and the development and expansion of green technologies.

"Just as we have become a strategically important player in global oil and gas production over the past decades, we aim to become a major driver in the global energy transition and green tech industry in the coming years", says CEO Gerald Grohmann. "This is how we can make the best possible use of the strengths and capabilities of our Group, such as our global market knowledge and technical expertise."

Specifically, the Group plans to build a new business segment outside the existing business by 2030. To this end, strategic investments and acquisitions will be made, preferably in the fields of energy transition and green tech industries. New business areas must fit the niche strategy of SBO and fulfill a set of strict criteria, including high entry barriers, protected through technology and specific know-how and long-term growth potential combined with sustainable profitability. In addition, investments in startups that have the potential to meet those criteria in the foreseeable future are an option. In the long term, the new business segment should generate 50 % of Group revenue.

The existing business of the SBO Group comprising high-quality products and solutions for the oil and gas industry is to continue contributing to energy supply security. Also in this field, the Group will continue to invest in innovations and defend its market-leading position that is protected by cutting-edge technology and high quality standards.

"Our traditional business models will generate cashflows for future investments over many years, with the new business segment becoming a significant addition to our existing portfolio. This will make the Group more balanced and resilient for the future and also represent an attractive investment opportunity for our global investor base", comments Mr Grohmann.

ESG (Environment, Social und Governance) criteria are also deeply entrenched in the Strategy 2030. This includes, apart from expanding our company by further ESG-compliant areas, the consistent reduction of the low total amount of CO2 emissions produced by the business activity. The company will continue to invest heavily in qualified employees and additionally focus on the diversity of the teams. Apart from developing a separate ESG Policy, SBO will further strengthen ESG communication and strives for competitive ESG ratings.

Outlook for 2022

The implications of the Russia-Ukraine conflict and the international sanctions against Russia are still unclear and hardly permit to make any reliable and meaningful forecasts for the global economy. In its analysis at the end of January, the International Energy Agency (IEA) assumed that energy demand will continue to rise in 2022, which will also be reflected in the oil and gas market. Exploration and production spending is expected to increase by 16 % in 2022, after years of underinvestment. Oil and gas prices reached new record levels in March due to the war in Ukraine.

"Only a few weeks ago, all analyses projected sound economic growth in the current year, despite some uncertainties due to the further impacts of the COVID-19 pandemic, delays in supply chains and price increases for many raw materials. The war in Ukraine has hit everyone unexpectedly and created unimaginable human suffering just a few hundred kilometers away from Austria. Our full solidarity goes to the people affected by this military strike", says CEO Gerald Grohmann. "The repercussions on the global energy market cannot be assessed yet. The low level of investment in oil and gas exploration and production in recent years is now becoming apparent as shortages in oil and gas arise caused by the consequences of the war in Ukraine. Therefore it can be assumed that investment in the exploration and production of oil and gas will increase in many regions of the world in order to secure energy supply."

SBO operates a small subsidiary in Siberia (Russia), which focuses on service and repair work. The share of sales generated by SBO's Russia business is in the single-digit million euro range.

"In particular in the current environment it is becoming even clearer how important both energy security and alternative energy sources are. With our high-quality products for the oil and gas industry, we are making our contribution to the supply of those resources. In addition, under our new Strategy 2030, we are screening the market for innovative technologies and aim to invest in the fields of energy transition and green tech", concludes SBO's CEO Gerald Grohmann.

SBO's key performance indicators at a glance

		2021	2020
Sales	MEUR	292.8	291.2
Earnings before interest, taxes, depreciation and amortization (EBITDA)	MEUR	60.0	27.1
EBITDA margin	%	20.5	9.3
Earnings before interest and taxes (EBIT)	MEUR	28.2	-28.0
EBIT margin	%	9.6	-9.6
Profit before tax	MEUR	23.4	-31.2
Profit after tax	MEUR	21.0	-21.7
Earnings per share	EUR	1.33	-1.38
Cashflow from operating activities	MEUR	22.9	94.3
Liquid funds	MEUR	291.8	314.0
Headcount		1,267	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 well completion equipment for the oil and gas industry. The Group employs a workforce of more than 1,200 worldwide and is successfully positioned in technologically demanding, profitable niches. Information on the Strategy 2030 and sustainable management (ESG) is available in the annual report athttps://www.sbo.at/publikationen.

Further inquire note:

Andreas Böcskör, Corporate Communications

Schoeller-Bleckmann Oilfield Equipment AG

Phone: [phone] ext 252

E-Mail: [e-mail]

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