Page 9 - EurOil Week 30 2021

EurOil PERFORMANCE EurOil

Wintershall Dea sees earnings surge

on higher European gas prices

GERMANY GERMAN gas supplier Wintershall Dea up to $5.59 per 1,000 cubic feet from $2.12 a year
soared to a €636mn ($749mn) pre-tax profit in earlier.
The company benefitted the second quarter, the company reported on Wintershall Dea left its capital expenditure
from the spike in July 27, up 140% year on year thanks to higher target for this year unchanged at €1.0-1.1bn for
European gas prices.d gas prices. development and production, and €200-250mn
Gas prices in Europe have gone from strength for exploration. It also managed to shave over
to strength in recent months and weeks, with €2bn off its net debt, bringing it to €3.8bn, there-
average day-ahead prices on the Dutch TTF plat- fore reducing its net debt-to-LTM EBITDA ratio
form reaching $8.76 per 1,000 cubic feet ($309 to 1.7.
per 1,000 cubic metres) in the three months end- “Q2 proved to be an excellent quarter for
ing June 30, up from only $1.72 a year earlier. Wintershall Dea,” Mehren summarised. “Our
Wintershall Dea CEO Mario Mehren attrib- strong operational and financial performance
uted the price climb in Europe to a recovery in allowed us to reduce our leverage back to our
demand in the industrial sector. mid-term target range. This has stabilised our
“European gas prices were also impacted by credit ratings and gives us significant flexibility
a colder than usual spring in Europe, the recent to follow our strategic objectives.”
heatwave, and lower levels of electricity from Wintershall Dea produced 613,000 barrels of
wind, leaving storage levels significantly below oil equivalent per day during the second quar-
the norms for this time of year,” he said. “LNG ter, which was down 7% from a record level in
cargoes that usually supported European gas the first quarter, as a result of maintenance work,
supply were diverted to Asia, where the indus- although it was still stable y/y.
trial recovery took hold earlier than in Europe, The company expects production to average
driving demand for gas and increased prices.” 630,000-640,000 boepd for the full year, it said,
He forecast that oil and gas prices would which marks a tightening of a previous forecast
remain firm in the coming quarters, “providing of 620,000-640,000 boepd.
us with strong tailwinds to end the year in a very “Despite the fact we have a large number of
strong position.” planned turnarounds to get through in the third
Wintershall Dea estimates that it sold its own quarter, in particular in Russia, we have seen
gas at an average price of $2.37 per 1,000 cubic robust production delivery in the first half,” CFO
feet in the second quarter, up from $1.16 in the Paul Smith said on an earnings call. “As a result,
same period last year. But the comparison was we’ve tightened our production guidance range
greatest in north Europe, where the price leapt for the year.” ™

Week 30 29•July•2021 www. NEWSBASE .com P9