The Strategist

German oil giant reports 9 months loss

11/24/2020 - 03:32

German oil and gas company Wintershall Dea recorded a net loss of €748 million in January-September 2020, the company said.

German oil giant reports 9 months loss
The company compared this figure with its first financial results for May-December 2019 after the merger of the assets of Wintershall and Dea into a single structure; during this period it recorded a net profit of €315 million.

At the same time, the adjusted net profit of Wintershall Dea for the reporting period amounted to €82 million, which is 2.5 times less than the adjusted net profit in May-December 2019. EBITDAX (profit before taxes, interest, amortization and exploration costs) in the reporting period decreased by 36.4% compared to May-December 2019, to €1.132 billion. The company's revenue reached €2.675 billion, which is 31% less than in May-December 2019.

Net income in the third quarter was up 28.6% year-on-year to €45 million. Adjusted net income for the period increased by 42.8% to €70 million. EBITDAX was 44% lower than a year ago, and revenues were €882 million, down 32% in annual terms. The company notes that the company's results in the reporting period were affected by the decline in oil prices.

The company's hydrocarbon production in the third quarter amounted to 606 thousand barrels of oil equivalent per day versus 588 thousand barrels of oil equivalent per day a year earlier (an increase of 3%). It is noted that the indicator does not include production in Libya.

Wintershall Dea is Europe's largest independent gas and oil producer.