The Austrian oilfield equipment supplier SBO reported a 12% revenue decline to €129.2 million and a 13.3% drop in profit to €13 million in the first quarter of 2025. CEO Klaus Mader attributes this to low oil prices and uncertainties caused by the US tariff dispute. While industry investments are decreasing, SBO is strategically focusing on geothermal energy and international growth markets to diversify risks.
The Austrian oil and gas equipment supplier Schoeller-Bleckmann Oilfield Equipment AG (SBO) experienced significant impacts in the first quarter from low oil prices, global trade tensions, and a “changed spending behavior in the industry.” Revenue fell 12 percent year-on-year to €129.2 million, while net profit declined by 13.3 percent to €13 million.
SBO CEO Klaus Mader identifies global economic uncertainty as the main challenge, especially related to the trade conflict sparked by US President Donald Trump. This conflict dampens global economic growth and thus reduces demand for oil and gas. Falling fossil fuel prices lead to lower investments by oil and gas producers—directly affecting suppliers like SBO.
However, the company is not heavily impacted by US tariffs due to having several production sites in the United States. “The American plants produce 80 percent for the American market,” Mader explained to the APA. The “uncertainty situation” caused by the tariff dispute, however, weighs on global economic sentiment. According to Mader, this “secondary effect” is a far more significant factor for the business: “That is the much bigger impact.”
US strategy “Drill, baby, drill” as a double-edged sword
Mader describes the further expansion of oil and gas production in the US as a “double-edged sword.” An oversupply could push global market prices down even further, thereby dampening the industry’s willingness to invest once again. Trump had already used the motto “Drill, baby, drill” during his election campaign and repeated it at his inauguration. The goal is to expand US energy production and export globally—without regulatory hurdles.
In detail, the first quarter showed significant differences between the business divisions:
- In the Precision Technology Division (PT), revenue fell by 29.7 percent compared to the previous year.
- In contrast, the Energy Equipment Division (EE) achieved a revenue growth of 10.5 percent.
- Order intake amounted to 108.3 million euros, below the previous year’s figure of 118.6 million euros.
- The order backlog stood at 124.1 million euros at the end of March, down from 141.8 million euros at the end of December 2024.
- The equity ratio was a solid 49.8 percent, underscoring SBO’s stable financial position.
A multilingual professional experienced in Europe, Canada, and China, Herbert has developed invaluable networks in the automotive and energy industries. He has led high-profile projects involving ENBW, Mercedes-Benz Group, Siemens Group, and the Fraunhofer Institute.