Successful start of the new fiscal year

DGAP-News: Deutsche Rohstoff AG / Key word(s): Quarterly results
Deutsche Rohstoff AG: successful start of the new financial year
02.05.2022 / 10:41
The issuer is solely responsible for the content of this announcement.

Deutsche Rohstoff AG: successful start of the new financial year
Consolidated net income for the first quarter 12.8 million euros / Strong increase in equity

Mannheim. The Deutsche Rohstoff Group achieved a net profit of 12.8 million euros in the first quarter (previous year: 11.7 million euros). With 28.1 million euros, sales were significantly higher than those of the previous year (17.9 million euros). EBITDA jumped to 25.2 million euros in the first quarter, also higher than the previous year (21.3 million euros). The quarterly report is now available on the company’s website at www.rohstoff.de.

The result is based to a greater extent on the operating result than in the first quarter of the previous year. This time, other operating income contributed only 3.4 million euros to the consolidated result. The previous year, the contribution had more than doubled to 9.5 million euros. Losses due to hedging transactions, which amounted to 10.5 million euros (previous year: loss of 1.6 million euros), had a negative impact on the result. For the rest of the year, however, the hedged production ratio is only around 40% and for 2023 it is below 10%. In the first quarter, an average oil price of 68.74 USD/barrel after covering losses and transport costs was reached, well above the previous year (48.09 USD/barrel).

The consolidated balance sheet reflects the good results of the previous year and the first quarter. Consolidated shareholders’ equity increased to €95.2 million as of March 31, 2022, compared to €80.1 million at the end of 2021. In addition to the consolidated result, the strong increase in the US dollar exchange rate also had a positive impact on equity. The equity ratio reached 32.4% compared to 30.2% as of December 31, 2021. Liquid assets of the extended definition (bank assets + securities held as fixed and current assets + current receivables) amounted to 77, 9 million euros at the end of the first quarter. Liabilities increased slightly to EUR 154.8 million. This is mainly due to the placing of the 19/24 bond in early February.

The production of the American subsidiaries in the first quarter amounted to 709,511 barrels of oil equivalent (BOE; previous year 578,912 BOE) and 380,794 barrels of oil (BO; previous year 329,309 BOE). The important Knight well did not produce on schedule until March due to early well worovers. A satisfactory contribution to the Group’s production was made by the subsidiary Bright Rock Energy, whose production in the first quarter amounted to 140,635 boe (previous year 38,015 boe). The Buster well in Wyoming, drilled last year, continues to produce very encouragingly. It reached 611 barrels per day in the first quarter. In total, the well produced approximately 106,000 barrels from the start of production at the end of October 2021 until the end of March.

A profit contribution of 3.4 million euros was provided by the sales of securities in the first quarter. The sale of a third of the Northern Oil and Gas (NOG) position made a significant contribution. The NOG stock portfolio still stood at approximately 435,000 shares at the end of the quarter. The equity portfolio contributed around 0.9 million euros to the result. At the end of March, unrealized gains in the portfolio amounted to around another 4.0 million euros. Excluding NOG shares, around 12 million euros are currently still invested in the portfolio.

For the current year, the Management Board expects a significant jump in turnover and EBITDA. According to forecasts published at the end of April, sales in the base scenario would be between 130 and 140 million euros and EBITDA between 110 and 120 million euros. Net profit should be clearly positive. The forecast is based on an oil price of 85 USD/barrel for the rest of the year, a gas price of 4 USD/mmBtu and an exchange rate of 1.12 EUR/USD (see press release of 25 April 2022). Further scenarios and guidance for 2023 can be found here www.rohstoff.de/en/guidance/.

Deutsche Rohstoff AG’s Board of Directors will hold a Zoom Call on Tuesday, May 3 at 11:00 a.m. to discuss the first quarter results. Interested investors can register for the call via the website www.rohstoff.de.

Mannheim, May 2, 2022

Deutsche Rohstoff identifies, develops and sells attractive commodity deposits in North America, Australia and Europe. The focus is on the development of oil and gas fields in the United States. Metals such as gold and tungsten complete the portfolio. Further information can be found at www.rohstoff.de

Contact
Deutsche Rohstoff AG
Dr. Thomas Gutschlag, CEO
Telephone +49 621 490 817 0
[email protected]

02.05.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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