Schoeller-Bleckmann Oilfield Equipment (SBO) Q3 2024 earnings summary

Executive summary

• Sales reached EUR 425.6 million for the first nine months of 2024, with 8.7–9% growth in Oilfield Equipment (OE) and an 11% decline in Advanced Manufacturing & Services (AMS); OE rebounded in Q3 while AMS faced demand softening and EUR 2.7 million FX losses.

• Group EBIT was EUR 51.8 million, significantly below last year; free cash flow improved to EUR 42.5 million, and cash position increased to EUR 263.2 million, supported by additional financing.

• Regional expansion continued, with double-digit sales growth in the Middle East and Latin America, a new facility in Saudi Arabia, and a three-year contract in Guyana.

• ESG initiatives advanced, including geothermal and CCUS projects, and the company won the ESG Award at the Austrian Leading Companies Awards.

• Strategic recalibration and rebranding are underway, with updates expected in early 2025.

Financial highlights

• Group sales for Q1–Q3 2024 were EUR 425.6 million, with OE up 8.7% and AMS down 11.1% year-over-year; bookings in Q3 were EUR 124 million, down 4–4.5% quarter-over-quarter.

• EBITDA for Q1–Q3 2024 was EUR 75.8 million (17.8% margin); EBIT margin at 12.2%, both down from the prior year.

• Profit after tax for Q1–Q3 2024 was EUR 34.4 million, down from EUR 55.8 million year-over-year; EPS at EUR 2.18 versus EUR 3.54 prior year.

• Free cash flow rose to EUR 42.5 million, up from EUR 17.2–33.1 million in 2023, aided by lower capex and reduced working capital.

• Cash and cash equivalents increased to EUR 263.2 million, net debt decreased to EUR 87.2 million.

Outlook and guidance

• Long-term fundamentals for the energy sector remain positive, with growth in both traditional and new energy markets and a focus on innovation and sustainability.

• Near-term outlook is cautious due to commodity price volatility, economic slowdowns, and conservative customer spending, especially in the US.

• AMS expected to face moderate sales environment and will focus on diversification; OE targets double-digit EBIT margins and continued regional expansion.

• Strategy recalibration and brand relaunch planned for early 2025.