SBO is facing an upward trend. In oilfield equipment, Downhole, is a stage to set the next expansion step. SBO will concentrate all activities on one site and expand capacities. Demand is good. Within AMS , SBO still is running short time work until 2018. However, order intake is picking up quarter-on-quarter from a low level.

Business outlook:

SBO described 2017 as a transition year and they stick to that wording. But the tremendous successful and quick adjustment of capacities plus the acquisitions set a good foundation to profit from any further increase in demand. Operating leverage improved as well as the product mix. Balance sheet, FCF and financing terms allow future growth.

Points of interest:

Besides the difficult prediction of demand, we think that SBO has the potential to grow not only with the market, but by an ongoing regional expansion of its leading products. They are also looking for further M&A opportunities. They must decide in 2018 and 2019 what to do with the minority stakes of the last acquisitions.