Schoeller-Bleckmann Oilfield Equipment (SBO) H1 2024 earnings summary

Executive summary

• H1 2024 sales reached €288.1 million, nearly matching the 2023 record, with international growth in the Middle East and Asia offsetting US market weakness, especially in the OE division.

• Strategic expansion advanced in growth regions, with innovation, team strengthening, and brand repositioning prioritized.

• Free cash flow improved to €27.7 million, supported by reduced working capital, despite lower earnings.

• Operational improvements and organizational changes in OE are expected to yield positive results from Q3 onward.

• Brand repositioning and deeper strategy recalibration underway, focusing on energy transition opportunities.

Financial highlights

• Group sales reached €288.1 million, down 2.2% year-over-year, with a shift from US to international markets.

• Group EBIT for H1 was €36.6 million, significantly below the previous year due to OE division weakness; AMS segment maintained EBIT margins above 22%.

• EBITDA stood at €53.1 million (18.4% margin), and EBIT margin was 12.7%.

• Free cash flow improved to €27.7 million, exceeding the previous year despite lower earnings.

• Net debt increased slightly to €95.5 million after a €31.5 million dividend payment; equity ratio at 54.3%.

Outlook and guidance

• International and offshore markets expected to drive E&P spending growth, while US market remains challenging with a 14% year-over-year rig count decline and a 3% spending drop.

• Measures taken in Q2 are anticipated to deliver improved, positive OE division results from Q3 onward.

• Strategic focus on capacity expansion in growth regions and continued diversification, both organically (geothermal, CCS, 3D printing) and inorganically.