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Schoeller-Bleckmann Oilfield Equipment AG / Persistently challenging market environment weighs on business result - Positive operating cashflow and fundamentally strong balance sheet structure with high equity Ratio - Integration of newly acqu

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6-month report

Ternitz/Vienna, 24 August 2016. Schoeller-Bleckmann Oilfield
Equipment AG (SBO), listed on the ATX market of the Vienna Stock
Exchange, was,like the entire oilfield service industry, confronted
with a continued deterioration of the market environment in the first
half of 2016. Oil companies cut back their spending even further, the
number of globally active drill rigs thus dropped once again. Since
the downturn started in 2014, the rig count has contracted by more
than 60 %.

In this extremely difficult environment, SBO generated a positive
operating cashflow and has a fundamentally strong balance sheet
structure. Due to its financial strength, SBO is in a position to
pursue targeted investments in implementing its long-term growth
strategy even in the current cycle, such as illustrated by the
acquisition of US-based "Downhole Technology LLC" (Downhole
Technology) on 1 April 2016.Integration of Downhole Technology is
running to schedule. At the same time, SBO continues to optimise its
cost structure. Hence, the company decided, at the end of the second
quarter, to restructure its business activities in Singapore.

"The downturn is not over yet. While signs are increasing that supply
and demand in the oil market will gradually move towards a balance,
we cannot really speak of a reversal of the trend yet", comments
Gerald Grohmann, CEO of SBO. "Our focus is on navigating SBO safely
through the cycle. We are aligning the company to ensure it is
perfectly prepared for the next upswing based on an improved cost
structure and strengthened market position. If demand for oil
continues to rise and spending of the oil companies remains low, it
is only a matter of time when overproduction turns into undersupply."

HY 2016 Results

Sales in the first half of 2016 went down by 52.9 % to MEUR 88.0
(1-6/2015: MEUR 186.9). In the first half of 2015, SBO had still
profited from the record bookings posted in 2014. As customers showed
strong restraint in ordering, bookings dropped by 28.4 %, to MEUR
75.0 (1-6/2015: MEUR 104.8). The order backlog at the end of the
first half of 2016 stood at MEUR 21.1, following MEUR 34.3 as at 31
December 2015 and MEUR 60.9 as at 30 June 2015. Downhole Technology
has delivered positive contributions to SBO's business development
from the beginning of the second quarter of 2016.