EANS-News: Schoeller-Bleckmann Oilfield Equipment AG / Half-year result delivers strong profitability at last year's level - Bookings rising - Earnings per share gone up

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6-month report

Ternitz/Vienna, 20 August 2014. Schoeller-Bleckmann Oilfield
Equipment AG (SBO) posted stable business development in the first
half of 2014: With clearly rising bookings, SBO generated earnings at
the same level as in the first half of 2013, continuing the
satisfying development seen in the first half of 2014 throughout the
second quarter.

In the first half of 2014 SBO posted an increase in bookings of 13.2%
to MEUR 228.5 (first half of 2013: MEUR 201.8). Half-year sales
revenues in 2014 came to MEUR 230.3, largely at the same level as in
the year before (2013: MEUR 235.4; -2.2% y-o-y). Earnings before
interest, taxes, depreciation and amortisation (EBITDA) were MEUR
65.9, slightly below last year (2013: MEUR 68.5; -3.9%). Earnings
before interest and taxes (EBIT) in 2014 of MEUR 45.7 (2013 after
impairment: MEUR 42.9; +6.4%) exceeded last year's figures. Profit
before tax of MEUR 41.4 (2013: MEUR 40.8; +1.6%) and profit after tax
of MEUR 30.3 (2013: MEUR 28.1; +8.0%) also came in above last year's
result. Half-year earnings per share of EUR 1.90 (2013: EUR 1.74;
+9.4%) also were higher than last year's reading. Margins remained
largely stable year-on-year: The EBITDA margin stood at 28.6% (2013:
29.1%), the EBIT margin at 19.8% (2013: 18.2%) and the pre-tax margin
at 18.0% (2013: 17.3%).

Gerald Grohmann, CEO of SBO: "The sound development of the first
quarter continued in the second quarter. Growing sales in the
Oilfield Equipment segment helped us compensate for customers'
cautious spending policy for High Precision Components. We grew
bookings, sales are stable and, being a leader in technology, the
company is highly profitable. With our targeted investments we are
trying to strengthen our profitability."

New segment reporting

In the second quarter of 2014 SBO changed the company's previous,
historically grown internal reporting by regions and adjusted its
segment reporting. SBO now divides business activities into two
segments: High Precision Components (production of high-precision
MWD/LWD components) and Oilfield Equipment (non-magnetic drill
collars, drilling motors, circulation tools and other downhole tools
including service and repair work), offering customers better
transparency and market-oriented reporting.

Both segments improved bookings in the first half of 2014 compared to
the same period of last year and developed favourably: The Oilfield
Equipment segment profited from rising global drilling activity and
positive business performance for non-magnetic drill collars. In the
first half of 2014, sales volumes in the High Precision Components
segment were influenced by customers' reduced capital expenditure
(spending for long-term capital goods).

Capital expenditure in fixed assets in the first half of 2014
amounted to MEUR 20.8 (2013: MEUR 27.6; -24.6%), spent primarily for
further expanding the drilling motor fleets in the US and Canada and
the circulation tools fleet of subsidiary DSI.

Outlook

According to current estimates of the International Energy Agency
(IEA), global oil consumption for full 2014 will be 92.7 mb/d, which
represents an increase of 1.05 mb/d from 2013. Based on weaker
macroeconomic data, this was a slight downwards revision of the IEA's
growth expectations of 1.23 mb/d from July. All current scenarios
expect global oil demand to rise continuously. In 2015 demand should
grow by another 1.3 mb/d, or 1.4%, to an aggregate 94.0 mb/d (IEA Oil
Market Report, August 2014).

All these factors constitute the basis of a continued stable
environment for the oilfield service industry. Being a leader in
technology, SBO has a sound strategic position to benefit from
growing global oil and gas production. The Oilfield Equipment segment
should profit from the high level of global drilling activity
presently seen in all regions also in the second half of 2014. With
its ongoing expansion of the drilling motor fleet and high market
acceptance of the DSI circulation tool, SBO is in a position to make
full use of this tendency. Business development in the segment of
High Precision Components will largely depend on the further capital
spending policy of globally operating oilfield service companies.

From today's perspective, the effects of the current geopolitical
development on SBO cannot yet be assessed. Regardless of political
escalations or newly emerging market opportunities SBO, as in the
past, is in a position to respond flexibly and promptly to changes in
the market. What remains a structural source of growth for SBO is the
continued tendency characterising higher oil and gas consumption
that, as a result, requires consistently growing use of high-end
technological equipment.

Comparison of key financial figures

1-6/2014 1-6/2013 Change
Sales in MEUR 230.3 235.4 -2.2%
EBITDA in MEUR 65.9 68.5 -3.9%
EBITDA margin in% 28.6 29.1 -
EBIT after impairment in MEUR 45.7 42.9 +6.4%
EBIT margin after impairment in% 19.8 18.2 -
Profit after tax in MEUR 30.3 28.1 +8.0%
EPS*) in EUR 1.90 1.74 +9.4%
Headcount**) in numbers 1640 1540 +6.5%

*) based on average number of shares outstanding
**) reporting date 30 June

Schoeller-Bleckmann Oilfield Equipment AG is the global market leader
in high-precision components and a leading provider of oilfield
equipment for the oilfield service industry. The business focus is on
non-magnetic drillstring components, high-performance drilling motors
and circulation tools for directional and horizontal drilling.
Worldwide, SBO has employed a workforce of 1640 as at 30 June 2014
(31 December 2013: 1574), thereof 440 in Ternitz/Austria and 657 in
North America (including Mexico).

Further inquiry note:
MMag Florian Schütz, Head of Investor Relations
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz/Austria, Hauptstrasse 2
Tel.: +43 2630 315-251
Fax: +43 2630 315-501
E-Mail: f.schuetz@sbo.co.at

end of announcement euro adhoc
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company: Schoeller-Bleckmann Oilfield Equipment AG
Hauptstrasse 2
A-2630 Ternitz
phone: 02630/315110
FAX: 02630/315101
mail: sboe@sbo.co.at
WWW: http://www.sbo.at
sector: Oil & Gas - Upstream activities
ISIN: AT0000946652
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien
language: English