Oilfield equipment maker Schoeller-Bleckmann (SBO) announced a surge in second-quarter earnings on Aug. 23, putting it on course to return to a full-year net profit.
The Austrian group is emerging from a rough patch, triggered by the collapse of oil prices a few years ago, as recovering crude prices prompt producers to invest in new projects.
It reported an eightfold increase in operating profit for April to June, helped by a thriving North American business where its customers include industry giants Halliburton and Schlumberger.
SBO said its sales surged 40% in the quarter to 105.9 million euros (US$121 million), benefiting in particular from strong demand for its drilling motors, circulation tools and repair and maintenance services in North America.
A company spokesman said Schoeller-Bleckmann expects to make a net profit this year, after a loss of 54 million euros (US$62.4 million) in 2017.
SOB expanded its operations in North America in recent months and generates around 60% of its revenue from there.
Chief Executive Gerald Grohmann said President Donald Trump’s protectionist policies were not affecting SOB’s business in the United States.
“Our U.S. business is going very well, but that is because of the good oil markets and not for political reasons,” Grohmann told Reuters by phone.
SBO could be affected by new U.S. sanctions against Russia, where it has a small but “very profitable business,” Grohmann said, adding it was too early for an in-depth assessment.
“The question will be, whether or not we will be able to ship goods from Europe to Russia.”
Recommended Reading
Occidental Increases Annual Dividend by 22%
2024-02-11 - Occidental Petroleum Corp.’s newly declared dividend is at an annual rate of $0.88 per share, compared to the previous annual rate of $0.72 per share.
Atmos Energy Announces Quarterly Dividend
2024-02-11 - Atmos’ dividend marks the company’s 161st consecutive quarterly dividend.
From Restructuring to Reinvention, Weatherford Upbeat on Upcycle
2024-02-11 - Weatherford CEO Girish Saligram charts course for growth as the company looks to enter the third year of what appears to be a long upcycle.
Atlas Energy Solutions Declares Dividend
2024-02-09 - Atlas Energy’s dividend represents a 5% increase from the previous quarter’s dividend.
Northern Oil and Gas Ups Dividend 18%, Updates Hedging
2024-02-09 - Northern Oil and Gas, which recently closed acquisitions in the Utica Shale and Delaware Basin, announced a $0.40 per share dividend.