At the beginning!
As this is my first real stock post, please bear with me if I have formulated something imprecisely or made another mistake. Feedback is very welcome!
The $SBO (-3.16%):
The company:
Origin still in imperial Austria. The company's history can be traced back to 1862. Now a global player (Europe, Canada, USA, Asia, Middle East) in the oil industry, the company is divided into two divisions:
Precision Technology:
It offers customized components with the highest accuracy, be it high-quality non-magnetic steels for directional drilling, precession components and housings for special measuring devices in the field of demanding oilfield applications or 3D metal gages. In addition, the company offers a 24/7 service for all its products.
Energy Equipment:
High-end equipment for horizontal and directional drilling on both onshore and offshore platforms.
The idea:
It's impossible to have every stock on your radar, even if it comes from your own country. In this specific case, I first heard about the stock from a podcast about the US operation (please - no discussion about legal or not) in Venezuela.
As in the podcast, I am of the opinion that the oil industry has neglected investment in oil production in recent years, resulting in an investment backlog. If we now want to produce oil more efficiently and economically, we will inevitably have to invest in infrastructure and equipment again. As a market leader, SBO will inevitably get a slice of the cake.
And the fact that we need oil or that we will not be able to get away from it was recently confirmed by the EU's decision to soften the ban on combustion engines. The energy requirements of AI and war are also driving the demand for oil and gas, as the energy requirements of both cannot even begin to be covered by renewable energy. And that's not even mentioning e-mobility.
Key figures and finances:
P/E RATIOWith a P/E ratio of just under 15, SBO is better valued than the sector average.
P/B RATIO: The P/B ratio is also impressive with a current value of around 1.
As already described in the idea, investments in the area of oil plants have been neglected in recent years, which is also reflected in SBO's sales figures, but I expect sales to grow in 2026. Profits have suffered along with turnover.
Conclusion and decision:
I think that shares in the sector in question will experience a comeback in 2026, as people around the world have bet too hastily on the green horse and now have to look after the sick, neglected horse, as they have a duty of care while it is still alive.
I opted for SBO for two reasons. As I mentioned in my previous tea post, I want to keep my share in the US sector small or reduce it, which is why the two competitors Schlumberger and Halliburton were left out. Another factor is that I am liable for tax in Austria. I pay withholding tax on pretty much every dividend abroad, in addition to my capital gains tax, which therefore only helps the countries that collect it and hardly anything reaches me. Reclaiming the tax is often not easy, which is often a "total financial loss" for smaller amounts.
Hence my decision to opt for the SBO. What do you think! :)
Of course, this is not advice or an investment recommendation!
