Venezuela 'back on agenda' for oil equipment supplier SBO, CEO says

SBO's chief executive stated on Thursday that Venezuela was "back on the agenda" after receiving an order to deploy the company's?precision?technology in South America. Venezuela has signed contracts for a number of oil and gas projects. Large foreign companies like Shell have taken advantage to invest early in the country's energy resources after the U.S. captured President Nicolas Maduro.

In a post-earnings meeting, Klaus Mader said: "There is a lot to upgrade in technology, but this is not a short-term situation, but a medium and long-term one." Mader stated that?companies who invest in Venezuela? were seeking security guarantees and that SBO had no intention of opening a facility there as it has an existing presence in Mexico and Houston Texas.

Mader responded that he expects customers to defer investments in the Middle East where SBO has three facilities, and generates 15% of its total turnover. He added that SBO still has an order in its inventory for Iraq, scheduled for March.

"The Middle East Conflict, unlike an oil'major' who is in refinery business, and is happy with oil prices north of $100 is not good for the business of SBO," said Mader. The war caused disruptions that led to a drop in core earnings of nearly half for the company. Danny Callaghan, Paolo Laudani and Danny Callaghan report.

(source: Reuters)