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EQS-Ad-hoc: Deutsche Rohstoff AG / Key word(s): Forecast
Deutsche Rohstoff AG: Increased guidance for 2023 and 2024
Mannheim. Deutsche Rohstoff AG raises its guidance for 2023 and 2024, due to the strong development of the WTI oil price and the US Dollar, a strong operational development and, as a consequence of the increased planning certainty from the successful issuance of the corporate bond 2023/2028 a few days ago, an accelerated completion of the current drilling program with increased working interest in current development wells. Guidance 2023 (increase) REVENUE
EBITDA
Guidance 2024 (increase) The assumptions for the basis of the 2024 guidance remain unchanged at a EUR/USD exchange rate of 1.12 EUR/USD, a natural gas price of 3 USD, and a WTI price of 75 USD in the base scenario and 85 USD in the increased price scenario. For 2024, the Deutsche Rohstoff increases the guidance as follows: Base scenario:
Increased price scenario:
End of Inside Information Information and Explanation of the Issuer to this announcement: Notes:
Jan-Philipp Weitz, CEO, commented: “With the completion of the successful bond placement, we have been able to achieve even higher planning certainty and a solid financial base. On this basis, we intend to actively exploit the currently very attractive price environment and bring the ongoing drilling projects into production even faster. At the same time, we are taking the opportunity to develop new wells at rates higher than planned. Our ability to react quickly to changing oil prices and the short investment cycles help us optimize our operational and financial performance.” Oil prices recently rose significantly to USD 90, providing for increased revenues in September and Q4. The company now expects oil prices of USD 85/BBL WTI in Q4. The stronger US Dollar compared to the guidance of 1.12 EUR/USD also has a positive impact on revenues and earnings. The high prices of recent weeks were also used to further expand hedging. The hedge book has thus reached by far the highest volume ever hedged by Deutsche Rohstoff. For the fourth quarter, around 330,000 BO have been hedged at USD 77. For 2024, around 1 million BO at USD 76 and for 2025 already 300,000 BO at USD 70. The company has thus hedged a total of 1.6 million BO. New and existing production is hedged at approximately 50% on an ongoing basis and the hedge is being rolled steadily further into the future. Results from recent wells in Wyoming have been consistently very encouraging. In particular, the recent wells in the joint venture in Wyoming were well above original expectations in the first months of production. Based on the high oil prices and the financing security provided by the placement of the 2023/2028 corporate bond, the Company has decided to bring the four wells drilled in July and August by 1876 Resources in Wyoming into production as early as November. This means that the investments will be accelerated into the current year. In addition, the wells are now executed with a significantly higher working interest then originally budgeted. This is also the case for the other four wells planned by 1876. In total, this will increase capital expenditure by around EUR 30 million or to around EUR 230 million (previously around EUR 200 million) in 2023 and 2024. The increase in capex is exclusively due to accelerated commissioning of wells and higher working interest. For the definition of EBITDA, please refer to the website of Deutsche Rohstoff AG at https://rohstoff.de/en/apm/. Mannheim, 27 September 2023 Contact Deutsche Rohstoff AG Phone +49 621 490 817 0 info@rohstoff.de
27-Sep-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
| Language: | English |
| Company: | Deutsche Rohstoff AG |
| Q7, 24 | |
| 68161 Mannheim | |
| Germany | |
| Phone: | 0621 490 817 0 |
| E-mail: | info@rohstoff.de |
| Internet: | www.rohstoff.de |
| ISIN: | DE000A0XYG76 |
| WKN: | A0XYG7 |
| Indices: | Scale |
| Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1736045 |
| End of Announcement | EQS News Service |
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1736045 27-Sep-2023 CET/CEST
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