Schoeller Bleckmann sees weakness in North America due to coronavirus, oil price war (updated)

SBO AG

18/03/2020 08:21

(Adds details, background)
    March 18 (Reuters) - Austrian oilfield equipment producer
Schoeller-Bleckmann (SBO)  SBOE.VI  said on Wednesday it is
seeing weakness in its North American market due to the
coronavirus outbreak and the oil production conflict between
Saudi Arabia and Russia.
    Saudi Arabia and Russia are in a war for market share after
the two top producers failed to agree to extend supply curbs to
support the market, which led to a significant drop in prices
that is being made worse by the coronavirus epidemic.
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    Countries all over the world are taking unprecedented steps
to contain the virus, which has killed more than 7,900 and
infected more than 198,600, and demand for fuels has dropped as
numerous governments told residents to restrict their movements
while businesses shutter.
    "North America will remain weak due to the low oil price. On
the international markets, there is hope that the oil and gas
companies' spending for exploration and production will be
adjusted only moderately," Chief Executive Gerald Grohmann said.
    However, SBO's international business helped to offset the
downward trend due to the high investment discipline on the
North American market, the company said as it confirmed its
preliminary full-year results.
    The company, which builds highly specialised oilfield
exploration equipment including odd-angle drilling and fracking
gear for a range of energy companies, also proposed a dividend
hike to 1.20 euros from 1.0 euro.
    

 (Reporting by Zuzanna Szymanska in Gdansk, editing by Louise
Heavens)
 ((zuzanna.szymanska@thomsonreuters.com; + 48 58 778 52 86;))