EQS-News

Financial year 2023: SBO with all-time high in sales - Seite 2

SBO completed the acquisition of Praxis Completion Technology in October 2023. The Dubai-based company is one of the leading suppliers of packer systems and completion products in the Middle East, offering tailored solutions that extend well life, assure well integrity and improve well performance.

Sales growth in both business segments, AMS outstanding with +32%

SBO's business is divided into two segments: The Oilfield Equipment (OE) segment and the Advanced Manufacturing & Services (AMS) segment. The OE division posted solid results, despite a reduction in drilling and completion activities in the US market in 2023. Sales increased slightly to MEUR 257.2 (2022: MEUR 252.6) after a strong finish at the end of the year. Profit from operations (EBIT) of the OE division was influenced by various one-off-effects – such as higher research and development expenses, negative foreign exchange effects, and acquisition-related and other one-off expenses – and was down on the previous year at MEUR 31.5 (2022: MEUR 50.1). In contrast, the AMS division had an outstanding year thanks to growth in international markets and an excellent operating performance. Sales in the AMS segment rose sharply to MEUR 328.7 (2022: MEUR 248.7). The EBIT improved significantly to MEUR 80.3 (2022: MEUR 48.3) due to higher sales and increased productivity. 

Excellent balance sheet ratios, cash flow further improved

The SBO Group's equity increased to MEUR 448.0 as of 31 December 2023, compared to MEUR 425.0 in the previous year. The equity ratio increased to 53.6% (2022: 47.1%). Cash and cash equivalents amounted to MEUR 162.4 (2022: MEUR 287.8), after one-off cash outflows of MEUR 21.7 for the acquisition of Praxis Completion Technology and MEUR 119.0 for the acquisition of minority interests following the final settlement of a legal dispute. Net debt amounted to MEUR 92.3 (2022: net liquidity of MEUR 34.5), while gearing stood at 20.6% (2022: minus 8.1%).

Cash flow from operating activities increased by 65% or MEUR 34.1 compared to the previous year and amounted to MEUR 86.5 (2022: MEUR 52.4), primarily driven by a reduced increase in working capital. Despite the acquisition-related cash outflow for Praxis Completion Technology, free cash flow improved to MEUR 33.1 (2022: MEUR 27.1). Capital expenditure on property, plant and equipment and intangible assets (CAPEX) increased to MEUR 37.5 in 2023 (2022: MEUR 31.0).