Austria's SBO reports 40% profit fall, expects medium-term demand rebound (updated)

SBO AG

20/05/2020 08:10

(Adds CEO, North America, detail)
    VIENNA, May 20 (Reuters) - Austrian oilfield equipment
producer Schoeller-Bleckmann (SBO)  SBOE.VI  reported a 40% fall
in first-quarter operating profit as the coronavirus impacted
exploration activities and knocked oil demand.
    CEO Gerald Grohmann said on Wednesday it was not possible to
predict when the turning point in the energy industry will be
reached. 
    "What is clear, however, is that in the medium term a
significant catch-up effect will take place and with it also in
the demand for oil and gas," he said.
    "As we have a sound balance sheet and virtually no net debt,
we are well prepared to navigate through these difficult times."
    SBO's net debt by end-March had halved from end-2019 to 9.1
million euros.
    The company generates a large chunk of revenue in North
America, where it said the negative impact from the turmoil on
the energy markets was "significant".
    Earnings before interest and tax (EBIT) fell to 12.1 million
euros ($13.25 million) as sales fell 10% to 108.9 million euros
in the three months to March 31, SBO said.  
    It said it plans to push ahead with cost cutting measures
but did not give details.
    Grohmann expects oil and gas to cover more than 50% of
primary energy requirements in the next two decades.   
    SBO builds highly specialised oilfield exploration equipment
such as drilling motors and circulation tools and provides
repair and maintenance services. 
    ($1 = 0.9135 euros)

 (Reporting by Kirsti Knolle; editing by Michelle Martin and
Jason Neely)
 ((kirsti.knolle@thomsonreuters.com; +43 1 2530 1650 13;))