Frankfurt For Thomas Schulz, who has been CEO of Bilfinger, a long-established company that has been in crisis for a long time, the current financial year has started with a message of success. The industrial service provider’s sales increased by 14 percent in the first quarter compared to the previous year, with significant growth in all segments and regions, as the group announced on Wednesday.
In his first interview after taking office in March, the manager also praised his predecessors for this: “A lot of very good work has been done at Bilfinger in the past few years,” Schulz told the Handelsblatt. The company is in a very strong position today.
The SDax Group is currently benefiting from an improved order situation in the oil and gas industry, which is also being boosted by the conflict between the West and Russia and the resulting price increases for energy. “If the market develops well there, that’s of course positive,” explained Schulz. However, it is questionable to what extent this will remain the case in the long term.
The Bilfinger boss sees an escalation of the conflict as the worst-case scenario, which could lead to a gas supply stop. “For us at Bilfinger, however, an energy embargo would probably mean a better order situation in the short term,” said Schulz. Due to a lack of raw materials, many industrial plants would first have to be shut down and then maintained.
Top jobs of the day
Find the best jobs now and
be notified by email.
From a macroeconomic perspective, however, the consequences are serious. “Europe as a whole would also be hit hard, because Germany is not an island and is economically connected to many EU countries and states outside the EU,” said Schulz.
Read the entire interview here:
Mr. Schulz, after oil and gas had long been written off as energy sources, the industry is experiencing a small renaissance as a result of the Ukraine war. What does this mean for Bilfinger?
Services for the oil and gas industry are among our core competencies. If the market develops well there, that is of course positive. However, our range of offers is very wide. Basically, we want to help our customers to become more efficient and sustainable. Technology is key, in the oil and gas industry, but also in our other segments.
Under your predecessors, capacities in the oil and gas segment were recently reduced. Do you have to rebuild in view of the changed market situation?
There are always these capacity changes at Bilfinger. It is therefore important that we invest in our staff in order to promote further training. That has always worked well in the past. It is important that there are no idle times in any area or that there is a lack of staff to process orders. The extent to which the market situation in oil and gas will change in the long term is closely linked to the further development of the conflict between the West and Russia.
What scenarios are you preparing for?
The worst-case scenario is another escalation. That would have a noticeable effect on politics and thus also on the economy. In principle, it is also conceivable that the war in Ukraine will continue for a long time to come. It’s a pretty bad idea, but you have to be prepared for it. We go through this regularly in top management and also in discussions with our customers.
Are you concerned about the possibility of an energy embargo on Russia?
Such a step would be very serious for the German economy – and thus also for society. Europe as a whole would also be hit hard, because Germany is not an island and is economically connected to many EU countries and states outside the EU. For us at Bilfinger, however, an energy embargo would probably mean a better order situation in the short term, because many plants that then no longer receive raw materials, for example, would have to be shut down and maintained at the same time. In the medium term, operators want to diversify and become more independent. This transformation business is also good for us.
eon– The head of the supervisory board, Karl-Ludwig Kley, has called for supplying industry with priority, not private households, if natural gas should become scarce. What do you make of it?
I think there is a misconception here. A lot of people think that if the gas goes off, the economy won’t get supplies and people will sit at home and be warm and everything will be fine. That’s not the case. The economy is not independent of the people. When companies have to close, there is no work and no money. The verbal separation of business and society is wrong and dangerous. Politicians must create a balance here, whatever that looks like.
>>> Read here: Bilfinger finds new boss at Danish industry colleague FLSmidth
Before the Ukraine war, Bilfinger went through many years of crisis. During the restructuring, your predecessor still had to solve numerous legal disputes resulting from several corruption scandals. Are you spared from this?
A lot of very good work has been done at Bilfinger in recent years. A lot of the problems have been solved. What has not been resolved is known. The whole process has made the company very crisis-proof. We are in an extremely strong position today.
As a service provider for the oil and gas industry, Bilfinger is benefiting from the currently good market situation.
(Photo: Nadine Rupp / Ruppography)
Bilfinger has significantly reduced its size during the restructuring. Is the downsizing now complete?
Downsizing isn’t the right word. The point was to focus on Bilfinger’s core competencies. You should invest and grow where you are good. This process is never complete, it is one of the main tasks for top management. Good companies are always able to reinvent themselves.
How do you want to reinvent Bilfinger?
The international economy is faced with complex tasks, above all the change towards more sustainability. In such a complex world, companies tend to outsource tasks that are not part of their core competencies. This is good news for service providers. We are familiar with industrial plants and know how to operate them efficiently and sustainably. There is still considerable potential for improvement in many industries in many parts of the world, and we want to leverage this in cooperation with our customers.
Your predecessor had to take some harsh criticism from activist investors. Have you already had the opportunity to discuss your ideas with the shareholders?
When you come to a company as the new CEO, you usually bring everything you want with you. I’m a very communicative person. Among other things, I want to encourage personal responsibility among employees. Bilfinger is already doing a lot right here. I want to further develop this excellent competence, and that’s why I was brought in.
Mr. Schulz, thank you very much for the interview.
More: Ukraine partially halts gas transfers to Europe