23.11.2017

Zugemailt von / gefunden bei: Baader Helvea (BSN-Hinweis: Lauftext im Original des Aussenders, Titel (immer) und Bebilderung (oft) durch boerse-social.com aus dem Fotoarchiv von photaq.com)

Schoeller-Bleckmann Oilfield Equipment (SBO ) - (Sell/TP EUR 60.00) - Out of the trough. Further improvement to be expected. Expensiv…

Out of the trough. Further improvement to be expected. Expensive.

Our conclusion

SBO has successfully marked its way through the most severe demand decline in recent history. Despite the fact that North America and especially Oilfield Equipment in the U.S. is by far the most important driver for the current positive EBIT, SBO is back in the positive territory. And they guide for a further improvement going forward. Demand in North America should remain strong and there are first signs of a slight uptick in the international markets. The 2016 acquired Downhill Technology moved to a modern and expanded facility to cope with the expected further rise in demand.

High valuation. SBO share rose almost in-line with the oil price since mid of this year driving FY2 P/E above 35 and price/book again above 3. We are skeptical about any further meaningful upside in the oil price.

Facts & Analysis

Operating performance continued its positive path. 3Q17 sales came in with EUR 104mn vs. EUR 45.1mn driven by both segments. EBIT reached EUR 13.8mn, the second positive quarter this year with Oilfield Equipment as a more pronounced contributor.

With the release of the preliminary figures on 17 October SBO announced that the valuation of the put/call option for minority shareholders, related to the acquisition of Downhole Technology requires a non-cash-effective expense of EUR 91.3mn shown in the financial result. The Put/Call option can be exercised on 1 April 2019, at the earliest. The quarterly valuation is driven by profit expectations. A strong result (28% margin in OE) and a more positive outlook for the business triggered that number. At the current state SBO would have to pay EUR 133mn for the remaining 32% stake.

Company im Artikel

SBO

Bohrmotor SBO (Bild: Schoeller-Bleckmann Oilfield Equipment AG, https://www.sbo.at/cms/cms.php?pageName=130 ) © Aussender

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