für Großhandelsriesen SBO: Record numbers and new CEO for wholesale giant.

Last Updated: 23. Januar 2024By

As reported here on „Schlussgong“ at the time, I visited the „Gewinn-Messe“ in Vienna in October 2023. One of the highlights of the fair for me was the lecture by Gerald Grohmann, the long-time CEO of Schoeller-Bleckmann (SBO). At the end of 2023, Grohmann stepped down from his role as CEO at SBO after 22 years.

His successor is former SBO CFO Klaus Mader. With the appointment of Klaus Mader as CEO, SBO is entering an exciting new phase, according to Supervisory Board Chairman Norbert Zimmermann. Before I delve into the preliminary figures for 2023, which were released just a few days ago, I would like to briefly introduce our new readers to the business model:

World market leader and supplier to the oil and gas fields The Schoeller-Bleckmann Oilfield Equipment AG, based in Ternitz, Austria, is the world market leader in high-precision components for the oilfield service industry. The company’s focus is on the production of so-called amagnetic drill string components for directional drilling technology, which is used in shale, deepwater, and ultra-deepwater drilling, among others.

A core segment of SBO is the production of MWD/LWD high-precision components. These are instruments located in the drill string that support the control of the drill string through measurements during the drilling process.

In addition, SBO’s core business includes the production and distribution of drilling motors and drilling tools, as well as specialty tools for downhole circulation technology for oil and gas drilling. This is complemented by offerings in the areas of repair and maintenance.

Strong preliminary figures for 2023 Now let’s take a look at the preliminary figures for the 2023 financial year, which show excellent revenue and earnings development. SBO achieved a new record revenue of 585 million euros, representing a significant increase of 17% compared to the already high revenue of the previous year.

The operating result (EBIT) also exceeded the previous year’s result, increasing from 96.2 to around 104 million euros in 2023. Adjusted for currency gains and losses, EBIT increased by 22% to 111 million euros, resulting in an adjusted operating profit margin (adjusted EBIT margin) of 19% for the full year (adjusted EBIT margin 2022: 18.1%).

The increase in operating profit compared to 2022 is due to a very strong year for the Advanced Manufacturing & Service (AMS) division, which was achieved through high growth in international markets and good operational performance.

The Oilfield Equipment (OE) division recorded solid results overall, despite a reduction in drilling and completion activities in the important US market in 2023. The division ended the year with strong growth and improved profitability in the fourth quarter.

SBO finished the 2023 financial year with a solid balance sheet, including a high cash balance of 162 million euros. Based on this, the company plans to pay a dividend of 2 euros per share in the current year.

Outlook for SBO remains strong Future growth is expected to take place primarily in the hydrogen sector. In this area, SBO plans to make one or more acquisitions in the near future. The company aims to take a leading role in the hydrogen economy.

However, the company also intends to remain a leading supplier of components for the oil and gas production industry for many years to come, as oil and gas will still be needed globally for decades. The fundamental data for oil and gas remains strong.

The increased investments in the exploration and production of new oil and gas fields, the low oil inventories and OPEC reserve capacities, as well as the international efforts to reduce energy dependence on Russia, are expected to lead to increased investment activity in the oil and gas sector. Therefore, the prospects for the SBO share are good.