16.02.2005 – 11:33

Schoeller-Bleckmann Oilfield Equipment AG

euro adhoc: Schoeller-Bleckmann Oilfield Equipment AG
Earnings / Suggested dividend increase of 33 %, continued high level of bookings, profit slightly above preliminary figures.

Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

16.02.2005

Ternitz/Vienna, February 16, 2005. Schoeller-Bleckmann Oilfield
Equipment AG (SBO) listed on the prime market of the Vienna Stock
Exchange confirms the preliminary figures for 2004 announced in
January. According to the now final figures, group sales were EUR
152.2 mill., 13.4 % above last year’s EUR 134.2 mill. Profit before
tax improved to EUR 15.5 mill. (following EUR 9.4 mill.), which is an
increase of 65 %. The Executive Board will suggest to the General
Meeting to distribute a dividend of 30 cents plus 10 cents per share,
in total 40 cents (following 30 cents). Based on the 2004 closing
price of 15.81 Euro, this corresponds to a dividend yield of 2.5 %.

"The overall situation for the oilfield service industry took a
positive turn last year. SBO used the past low-cycle years to get
perfectly prepared for a recovery of the industry. The result
generated in 2004 is proof of the fact that SBO made full use of the
economic upswing in 2004.", says Gerald Grohmann, SBO’s CEO.
Additionally, the satisfying result was achieved although the dollar
declined by around 10 %. Adjusted for currency fluctuations, SBO
would have generated sales worth EUR 164 mill. (22 % increase) and
profit before tax of EUR 19.8 mill. (110 % increase).

Positive overall environment in 2004
The market environment for the oilfield service industry in 2004 was
characterized by a strong demand for oil and gas. According to
preliminary assessments, global oil consumption rose from 79.7
million barrels per day in 2003 to 82.4 million barrels per day in
2004. The decisive factor was the strong economic growth in the Asian
emerging markets, in particular China and India, as well as North
America. Fears that the surging oil price could have a dampening
effect on the economic development did not materialize.

The global rig count (an indicator of drilling activities) rose from
2,334 at the end of 2003 to 2,555 at the end of 2004. The market for
high-tech directional drilling, SBO’s core business, recovered
significantly.

Against the backdrop of this positive market development, SBO
recorded improved bookings over 2003 from the first months of 2004
on. The positive development of the industry consolidated in the
second quarter and was sustained in the second half of the year. For
the full year 2004, bookings were 30 % higher than in 2003. The
growth in business was observed in all segments and regions alike.

The high level of bookings was worked off according to plan by
additional shifts and extra personnel in compliance with the flexible
capacity concept of SBO.

After preparations in 2003 and due to the high demand, SBO founded a
fully-owned subsidiary in Monterrey, Mexico in 2004.
Schoeller-Bleckmann de Mexico started production in the fourth
quarter. The Mexican plant currently supplies the US-subsidiaries of
SBO, Knust SBO Ltd and Godwin-SBO L.P. in Houston, Texas. 
Furthermore, establishment of a service facility was begun in the
Rocky Mountains.

As a result of the concentration on the core business, US-subsidiary
BAFCO Inc., Pennsylvania, was sold to the management of the company,
which lately had generated sales of USD 3.6 million. Closing for the
divestment will be completed within short.

Satisfying development of the SBO share
SBO’s share finished the trading year at a closing price of Euro
15.81, reflecting a price increase of some 75% over the full year.
The liquidity of the share also grew, as the average daily trading
volume of 24,211 shares (double counting) was significantly above the
average of 11,638 shares traded in 2003.

Outlook into the first quarter and the business year 2005 
Early in the decade, the international oil companies had considerably
downsized their drilling activities in view of the weak global
economic development. The most recent upswing has triggered an
accumulated demand for exploring new oil reservoirs. Industry
analysts expect this situation to last over the next years.

Uncertainties arise to SBO from the further development of the
euro-dollar exchange rate. A weak dollar is a burden on SBO’s
business figures as the company invoices 80 % of its sales in
US-dollars; however, 60 % of the costs are incurred in dollars. In
the past year, SBO could ease the effects of the weak dollar by cost
management and productivity increases.

In their most recent forecasts, international energy agencies (EIA,
DOE) assume that in 2005 global oil demand will rise by around 2
million barrels to some 84.4 million barrels per day. Consequently,
SBO expects business to develop satisfactorily in 2005 as well.

~
                                        2004       2003
Sales                                  152.2      134.2
EBIT                                    17.6       13.1
EBIT margin (%)                         11.5        9.8
Profit before tax                       15.5        9.4 
Net income                              10.8        6.1
Cash-flow from operating activities     28.5       22.2
Investments /tangible assets            10.0       13.7
Earnings per share                       0.83       0.47
Dividend per share                       0.40**     0.30
Headcount*                              837         800
~
* Reporting date December 31 
** suggested

Schoeller-Bleckmann Oilfield Equipment AG is the global market leader
in high-precision components for the oilfield service industry. The
business focus is on non-magnetic drillstring components for
directional drilling. Worldwide, SBO employs a workforce of 837
(December 31, 2003: 800), currently 211 in the company headquarters
at Ternitz, Lower Austria, and 435 in North America (including 
Mexico). The majority shareholder is Berndorf AG.

Financial calendar 2005

March 8, 2005: Annual General Meeting 
March 14, 2005: Ex-dividend day 
May 20, 2005: Q1/05 result 
August 19, 2005:  Q2/05 result
November 18, 2005: Q3/05 result

end of announcement                    euro adhoc 16.02.2005 08:10:00 

Further inquiry note:

Gerald Grohmann, Chief Executive Officer
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz, Hauptstraße 2
Tel: +43 2630/315 ext. 110, fax: ext. 101
E-Mail: sboe@sbo.co.at

Mick Stempel, Hochegger|Financials
Tel.:+43 1/504 69 87 ext. 85
E-Mail: m.stempel@hochegger.com

Branche: Oil & Gas - Upstream activities
ISIN: AT0000946652
WKN: 94665
Index: WBI, ATX Prime
Börsen: Wiener Börse AG / official dealing

Original-Content von: Schoeller-Bleckmann Oilfield Equipment AG, übermittelt durch news aktuell