EANS-News

Schoeller-Bleckmann Oilfield Equipment AG: Positive operating result despite the prevailing turbulences on the global markets - Seite 2

Gerald Grohmann, CEO of SBO.

High liquidity strengthens position
SBO Group equity arrived at MEUR 287.0 in 2020 (2019: MEUR 370.1). The equity
ratio was 36.9 % at the end of 2020 (2019: 42.3 %). Due to a high positive
cashflow, net debt turned into net liquidity of MEUR 9.5 in 2020 (2019: net debt
MEUR 20.1). Accordingly, gearing also decreased from 5.4 % (2019) to minus 3.3 %
as at 31 December 2020.

Liquid funds increased sharply, arriving at MEUR 314.0 (2019: MEUR 265.2). In
the third quarter of 2020, SBO further strengthened its existing strong
liquidity base by raising funds of MEUR 81.0. The operating cashflow arrived at
MEUR 94.3 in the year 2020 (2019: MEUR 98.1). Free cashflow rose from MEUR 63.8
in 2019 to MEUR 80.1. Capital expenditure on property, plant and equipment and
intangible assets (CAPEX) amounted to MEUR 16.2 (2019: MEUR 31.5), and purchase
commitments for property, plant and equipment came to MEUR 3.7 (2019: MEUR 5.0).

Due to the development of the crisis year 2020 and the negative result, the
Executive Board will propose to the Annual General Meeting on 29 April 2021 not
to distribute a dividend for the financial year 2020 (2019: EUR 1.20 per share).

Outlook 2021
Although the uncertain current situation hardly allows for reliable, resilient
forecasts of future economic development and recovery of the oil and gas market,
there are clear signs of an upward trend: the oil and gas industry bottomed out
in the third quarter of 2020, leading to a slight recovery in the market. This
should continue in the following quarters and bring about a noticeable rise, in
particular from the second half of 2021 onward. However, these projections
depend largely on how quickly the COVID-19 pandemic is contained and global
economic growth picks up again.

"We are well prepared for 2021, given our strong liquidity base and effective
anti-crisis measures already in place. Market sentiment has improved recently
due to the roll-out of vaccination programs and additional stimulus packages.
However, we remain vigilant in view of the uncertain market conditions. At Group
level, we expect to see a moderate increase in activities in the first half of
the year, which should gain momentum in the second half of 2021", says CEO
Grohmann.

With its high-quality products, the SBO Group contributes to making the supply
with energy more efficient and more economically friendly. "In parallel, we are
continuously working on the implementation of our sustainable growth strategy