Pent-up oil and gas equipment demand lifts Schoeller-Bleckmann profit

SBO AG

23/05/2019 07:50

VIENNA, May 23 (Reuters) - Schoeller-Bleckmann (SBO)
 SBOE.VI  predicted rising demand for its drilling motors and
circulation tools on Thursday after years of stagnation as its
first-quarter core profit rose 49%.
    The Austrian oilfield equipment producer said its earnings
before interest and tax (EBIT) increased to 20.2 million euros
($22.5 million) and sales grew 29 percent to 121.1 million euros
in the January-March period.
    Under-investment in recent years within the oil and gas
industry had created pent-up demand that will gradually lead to
the launch of new exploration and production projects and a
revival of activity in the oilfield service industry, SBO said.
    "The trend towards efficiency-enhancing products and
measures is going on. We expect that the momentum in the
international market will continue," SBO Chief Executive Gerald
Grohmann said. 
    SBO forecast global spending for exploration and production
to rise 4% this year. However, in North America investment is
expected to fall 5% after strong growth in recent years.
    Schoeller-Bleckmann's operating cash flow increased nearly
fivefold to 36.8 million euros in the first quarter. Its order
backlog was at 107.3 million per end-March, it said.
($1 = 0.8969 euros) 

 (Reporting by Kirsti Knolle;
Editing by Alexander Smith)
 ((kirsti.knolle@thomsonreuters.com; +43 1 53112 255; Reuters
Messaging: kirsti.knolle.thomsonreuters.com@reuters.net    
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