SBO's profit slumps due to Iran war, but rebuild boosts oil equipment orders (updated)

SBO AG

20/08/2026 07:07

Recasts paragraph 1 to include positive order trend, adds context in paragraph 2, analyst comment and share move in paragraphs 8 and 9.
Aug 20 (Reuters) - Oil services and equipment provider SBO's SBOE.VI half-year core profit slumped 46% as disruptions from the Middle East conflict weighed on logistics, but its order book grew as clients in the region invest in rebuilding facilities, it said on Thursday.
The Austrian company generates 15% of its turnover in the Middle East and operates three sites in Dubai and Saudi Arabia.
SBO's earnings before interest, taxes, depreciation and amortization fell to €24.2 million ($28.3 million) in the first six months of 2026, from €44.5 million a year ago.
However, its end-June order backlog was up by almost a third compared to the start of the year, as customers affected by the war seek to rebuild destroyed infrastructure.
"Spending on rebuilding production capacity in the Middle East is expected to rise," SBO said in a statement, noting that customers were pointing to the start of a new upcycle.
The company expects the positive booking trend in its precision technology unit, which makes up around 40% of its sales, to continue into the third quarter.
"A possible easing of the conflict in the Middle East would provide additional support for this development," it added.
Analyst Nicolas Kneip from Wiener Privatbank said the results "support the view that the sector is experiencing an upturn in the business cycle" and were therefore encouraging despite the lower earnings.
Shares of SBO were marginally higher in early trading.
($1 = 0.8565 euros)

(Reporting by Danny Callaghan and Paolo Laudani in Gdansk, editing by Milla Nissi-Prussak)
((Email: danny.callaghan@thomsonreuters.com))