Revenue and EBITDA 2022 around 7% above forecast of 14 October
Forecast 2023 and outlook 2024 unchanged
EBITDA increases by a further ca. EUR 10 million
Mannheim, Dezember 12, 2022 16:30h Deutsche Rohstoff Group recorded higher oil production in the current quarter than expected in October. The four US-subsidiaries produced an average of over 9,650 BOEPD (barrels of oil equivalent per day) in the first 11 months of 2022. Compared to 30 September (9,339 BOEPD), this represents an increase in expected total production of about 110,000 BOE.
The increase in revenue is mainly due to higher production volumes from the existing wells in Colorado, as well as very high initial production from the wells in Utah, which started production in Q4. Some additional wells in Utah will start production in H1 2023. In Wyoming, the wells were also all able to produce at or above plan.
Forecast 2022 (increase)
Sales of EUR 163 to 168 million (previous forecast EUR 152 to 157 million)
EBITDA EUR 138 to 143 million (previously EUR 128 to 133 million)
Forecast 2023 (unchanged)
For 2023, the Company confirms the forecast as follows:
Base scenario
Group sales: EUR 140 to 160 million
EBITDA: EUR 110 to 125 million
Increased price scenario
Group sales: EUR 155 to 175 million
EBITDA: EUR 125 to 140 million
The assumptions for the basis of the forecast remain unchanged at a EUR/USD exchange rate of 1.12 EUR/USD, a natural gas price of USD 4, and a WTI price of USD 75 in the base scenario and USD 85 in the increased price scenario.
For 2024, the Executive Board continues to expect sales above EUR 120 million and EBITDA above EUR 100 million. This is based on only 4 additional net wells at Cub Creek until mid-2023, non-operated wells in Utah until mid-2023 and the already contractually secured Occidental joint venture.
For a definition of the term EBITDA, please refer to the Deutsche Rohstoff AG website at https://rohstoff.de/en/apm/.
Mannheim, 12 December 2022
Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten round off the portfolio. Further information is available at www.rohstoff.de
Contact
Deutsche Rohstoff AG
Phone +49 621 490 817 0
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Disclaimer All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.
Coinbase has acquired One River Digital Asset Management (ORDAM), a premier institutional digital asset manager and SEC-registered investment adviser. ORDAM will transition to become Coinbase Asset Management (CBAM), and will operate as an independent business and wholly-owned subsidiary of Coinbase. The acquisition aligns with our long-term strategy to unlock further opportunities for institutions to participate in the cryptoeconomy.
With over $130 billion of quarterly institutional trading volume and over $50 billion of institutional assets on platform, Coinbase operates at the center of the institutional digital asset market. Our products are purpose-built to provide secure access to digital assets and Web3. Premier global institutions including asset managers, corporations, financial institutions, and other market participants entrust Coinbase as their platform of choice in the cryptoeconomy. As of Q4 2022, roughly 25% of the 100 largest hedge funds in the world by reported assets under management have chosen to onboard with Coinbase.
In furthering our goal of bridging the gap between institutions and the cryptoeconomy, we’re excited to announce that Coinbase has acquired One River Digital Asset Management, a subsidiary of One River Asset Management. An SEC-registered investment adviser, ORDAM will form the foundation of Coinbase Asset Management and offer investment advisory services to a range of new and existing institutional clients.
ORDAM is a leading digital asset manager focused on providing institutional clients exposure to digital assets via robust investment products. Coinbase and ORDAM have a history of close partnership. ORDAM leverages Coinbase Prime to deliver differentiated investment solutions to sophisticated institutions and we’re partnering to build innovative digital asset management infrastructure such as ONE Digital SMA, a suite of digital investment strategies and indexes in an easy-to-use separately managed account (SMA) platform powered by Coinbase Prime and Coinbase Custody, a New York DFS qualified custodian. Coinbase Ventures was also an early investor in ORDAM.
Coinbase and ORDAM share an ethos grounded in prudent risk management, a trait which has enabled both firms to successfully navigate the recent market turmoil. Culturally, our two organizations are strongly aligned on pursuing the opportunity in digital assets with an uncompromising priority on safety and soundness. With this acquisition, we are excited to welcome ORDAM’s best-in-class team to Coinbase and to partner more deeply to expand institutional access to digital assets.
Eric Peters will continue to serve as the CEO/CIO of ORDAM (now CBAM) as well as the CEO/CIO of One River Asset Management, an unaffiliated and independent business. Eric has over 30 years of experience in the asset management industry and founded One River Asset Management in 2013. ORDAM will continue to operate as an independent entity under Coinbase, segregated from our trading and exchange businesses, with minimal disruption to current business activities and standard controls implemented among well-regulated and diversified financial institutions.
We welcome top talent at Coinbase, and the One River Digital Asset Management team represents the best expertise in their field. We look forward to working with them in building our asset management business and providing industry-leading products and services to the institutions we support.
About Coinbase
Coinbase is building the cryptoeconomy – a more fair, accessible, efficient, and transparent financial system enabled by crypto. The company started in 2012 with the radical idea that anyone, anywhere, should be able to easily and securely send and receive Bitcoin. Today, Coinbase offers a trusted and easy-to-use platform for accessing the broader cryptoeconomy.
Disclaimer All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.
Klöckner & Co SE reports strong earnings and cash flow in fiscal year 2022 despite challenging economic environment 09.03.2023 / 07:00 CET/CEST The issuer is solely responsible for the content of this announcement.
Klöckner & Co SE reports strong earnings and cash flow in fiscal year 2022 despite challenging economic environment
Strong operating income (EBITDA) of €417 million before material special effects (2021: €848 million)
Exceptionally high operating cash flow of €405 million due to consistent net working capital management (2021: negative cash flow of €306 million)
Sales increased by 26% to €9.4 billion (2021: €7.4 billion)
Strengthened role as pioneer of a sustainable steel and metal industry with launch of Nexigen® brand and expansion of related product and service portfolio
Leading position in North America extended with agreed acquisition of National Material of Mexico by Kloeckner Metals Corporation
Dividend of €0.40 per share (2021: €1.00) to be proposed to Annual General Meeting
EBITDA before material special effects in Q1 2023 expected to be very considerably higher than in the preceding quarter at €40 million to €90 million; positive outlook for fiscal year 2023
Duisburg, Germany, March 9, 2023 – Despite the challenging economic environment, Klöckner & Co generated strong operating income (EBITDA) of €417 million before material special effects in 2022 (2021: €848 million). Driven by higher average price levels, Group sales increased significantly year-on-year from €7.4 billion in 2021 to €9.4 billion. Based on the positive net income of €259 million (2021: €629 million) and earnings per share of €2.54 (2021: €6.21), Klöckner & Co will propose a dividend of €0.40 (2021: €1.00) per share to shareholders at the Annual General Meeting.
As forecast, consistent net working capital management and an actively enforced inventory reduction in the second half of 2022 resulted in an exceptionally positive cash flow from operating activities of €405 million (2021: negative cash flow of €306 million). The equity ratio increased over the prior year’s level to 51% at the end of the year (2021: 47%).
Guido Kerkhoff, CEO of Klöckner & Co SE: “Despite the challenging macroeconomic environment, we continued to successfully execute our corporate strategy in fiscal year 2022. We made significant progress toward our goal of becoming the leading one-stop shop for steel, other materials, equipment and processing services in Europe and the Americas. In addition, with Nexigen® and the Product Carbon Footprint, we have further strengthened our role as pioneer of a sustainable steel industry.”
Further strengthening of role as sustainability pioneer
Klöckner & Co further expanded its range of sustainable products and services in the past year, thus strengthening its role as a pioneer in this regard. The Company brought together its CO2-reduced products and services under the Nexigen® brand launched in fiscal year 2022. This marked an important step in execution of the Group’s “Klöckner & Co 2025: Leveraging Strengths” strategy, in which sustainability plays a pivotal role as a strategic growth driver. With the new brand, the Company enables customers to reliably procure CO2-reduced steel and metal products, providing them with full transparency about their CO2-footprint. The past year saw Klöckner & Co already deliver the first quantities of CO2-reduced steel to longstanding customers such as Mercedes-Benz and Siemens. Thanks to a partnership launched in 2022 with Outokumpu, the world’s leading supplier of sustainable stainless steel, Klöckner & Co now also supplies CO2-reduced stainless steel in a further addition to the range of emission-reduced metals.
CO2-categorization and Product Carbon Footprint for transparency on emissions
Combined with a comprehensive range of logistics solutions, circularity solutions and Sustainability Advisory Services (SAS), the Company supports customers in building sustainable value chains. To this end, Klöckner & Co further added to its CO2-categorization offerings. From the beginning of 2023, in addition to the established five-category classification of CO2-reduced steel, stainless steel and aluminum, customers can now have the individual Product Carbon Footprint (PCF) calculated for nearly all of the around 200,000 Klöckner products. The PCF reflects a product’s cumulative CO2-emissions across the entire value chain, from resource extraction to production and delivery at the customer’s factory gate (“cradle to customer entry gate”) and is determined using the Nexigen® PCF Algorithm, which has been certified by TÜV SÜD.
The Company’s wide-ranging sustainability activities have also been recognized by external sources. December 2022 saw Klöckner & Co win the German Sustainability Award 2023 in the Climate Transformation category. In addition, in April 2022, Klöckner & Co became the first company in the world to have all of its net zero carbon targets, including its decarbonization path, recognized as science-based in the standard validation process in accordance with the latest Science Based Targets initiative (SBTi) standards.
Expansion of product portfolio with acquisitions in North America and Europe
With the acquisition of National Material of Mexico (NMM) by the US subsidiary Kloeckner Metals Corporation (KMC) announced at the end of 2022, Klöckner & Co is strengthening its leading position in steel and metals distribution and the steel service business in North America. Customers stand to benefit from the transaction with improved access to steel, aluminum and stainless steel in Mexico. NMM and KMC notably complement each other in terms of regional coverage, customer segments and in view of NMM’s strong position in the automotive sector. In addition, the acquisition represents an attractive opportunity to enter the exclusive electrical steel market, which has considerable growth potential. Mexico is also highly attractive for KMC due to its proximity to the US and to the highly qualified local labor market. All of the world’s major automotive manufacturers produce in the country and the number of vehicles made there is expected to increase significantly in the future. As a combined player, Klöckner & Co will be ideally positioned to meet the resulting demand. The transaction is subject to the necessary antitrust approvals and is expected to close before summer 2023.
In addition, Klöckner & Co has further strengthened its partnership with US steel producer Nucor and is investing in a heavy plate processing plant on the site of the new Nucor steel mill in Brandenburg, Kentucky. Nucor Steel Brandenburg is a state-of-the-art electric steel mill where scrap is recycled into new heavy plate for offshore wind turbines and other infrastructure projects. With this investment, Klöckner & Co is driving ahead the development of sustainable, innovative and complex solutions for the entire supply chain and extending its portfolio of higher value-added services.
The Company has also made selective acquisitions to expand its product and service range in Europe. The acquisition of Hernandez Stainless GmbH and RSC Rostfrei Coil Center GmbH by the German subsidiary Becker Stahl-Service marked Klöckner & Co’s entry into stainless steel processing in a further addition to its product and service portfolio.
Focus on internal process digitalization
Klöckner & Co also continued to forge ahead in the strategic focus areas of digitalization and automation. In fiscal year 2022, the Company launched additional initiatives to streamline, harmonize and modernize the Group IT landscape. These initiatives lay the groundwork for further digitalization and automation of processes between sales and processing and enhance internal operational efficiency. By improving supply chain transparency, Klöckner & Co is also enhancing the shopping experience for customers, for example with real-time order tracking. This gives Klöckner & Co a competitive edge over smaller competitors. In order to continue developing innovative digital solutions in the future, the digital innovation hub kloeckner.i is to be tied in even more closely with the operating business and will intensify internal collaboration with other units.
Outlook
Although the economic environment remains challenging, the Company expects that the global steel market will increasingly normalize this year. A stronger demand trend in the Company’s key European and US markets is thus expected to bring a considerable increase in shipments compared to fiscal year 2022. Despite the rise in steel prices at the beginning of 2023, Klöckner & Co expects a lower price level overall compared to the prior-year period and correspondingly lower sales. Given the overall considerable improvement in the Company’s operational positioning, substance and profitability base, Klöckner & Co is targeting EBITDA before material special effects at a strong level, albeit below the prior-year figure, which was significantly positively impacted by price effects.
Due to a strong improvement in the macroeconomic environment, a positive price trend and very rigorous net working capital management, the Company expects that first-quarter EBITDA before material special effects will be very considerably higher than in the preceding quarter, at €40 million to €90 million.
About Klöckner&Co:
Klöckner & Co is one of the largest producer-independent distributors of steel and metal products and one of the leading steel service companies worldwide. Based on its distribution and service network of around 150 sites in 13 countries, Klöckner & Co supplies more than 90,000 customers. Currently, the Group has around 7,300 employees. Klöckner & Co had sales of some €9.4 billion in fiscal year 2022. With the expansion of its portfolio of CO2-reduced materials, services and logistics options under the new Nexigen® umbrella brand, the company is underscoring its role as a pioneer of a sustainable steel industry. At the same time, Klöckner & Co leads the way in the steel industry’s digital transformation and has set itself the target of digitalizing and largely automating its supply and service chain. In this way, the Company aims to develop into the leading one-stop shop for steel, other materials, equipment and processing services in Europe and the Americas.
The shares of Klöckner & Co SE are admitted to trading on the regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with further post-admission obligations (Prime Standard). Klöckner & Co shares are listed in the SDAX® index of Deutsche Börse.
ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576.
Contact Klöckner & Co SE:
Press Christian Pokropp – Press spokesman Head of Corporate Communications | Head of Group HR +49 203 307-2050
Investors Felix Schmitz Head of Investor Relations | Head of Strategic Sustainability +49 203 307-2295
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Disclaimer All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.
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