[West Dayton, Middx, United Kingdom, November 3, 2023 — msch — The SiLLC Assembly / crocon media] In an unprecedented surge of financial success, Deutsche Rohstoff AG has reported a staggering net income of EUR 21.4 million for the third quarter, culminating in a nine-month pinnacle of EUR 42.6 million. The Mannheim-based resource group has not only eclipsed its previous sales records but has also set a new benchmark in EBITDA and earnings for the third quarter of 2023.
The company’s revenue soared to EUR 57.5 million, with EBITDA reaching EUR 45.6 million, signaling robust operational health and strategic acumen. This performance is a significant leap from the previous year, where sales were reported at EUR 132.6 million and EBITDA at EUR 101.6 million, showcasing a consistent upward trajectory in the company’s financials.
A notable highlight is the all-time high in oil and gas production, touching 14,600 BOEPD in Q3, marking the highest quarterly production in 2023. The cash flow from operating activities stood at EUR 96 million, despite a slight dip from the previous year’s EUR 108.1 million. The Group’s aggressive investment strategy is evident in the EUR 125 million funneled into new wells, fortifying its future production capabilities.
The strategic foresight of Deutsche Rohstoff AG is further exemplified by its hedge book, which reached a record level of 1.8 million barrels at USD 75.50/bbl in mid-October. This move not only secures the company’s financials against volatile market swings but also underscores its commitment to long-term stability.
The balance sheet reflects a solid liquidity position, bolstered by the issuance of a new bond, with cash and marketable securities totaling EUR 76.1 million. Equity has seen a healthy increase to EUR 172.7 million, although the equity ratio has experienced a slight decrease to 36.5%.
Looking ahead, Deutsche Rohstoff AG’s executive board remains optimistic, with an expected production of 12,000 to 12,500 BOEPD for the full year. The company is well on its way to achieving the increased guidance issued in September, thanks to the acceleration of well completions and the recent commencement of production from the first four wells of 1876 Resources.
For the fiscal year 2023, the company maintains its sales forecast between EUR 188 to 198 million and EBITDA projections of EUR 138 to 148 million. The subsequent year looks equally promising, with sales and EBITDA expected to range between EUR 190 to 210 million and EUR 145 to 160 million, respectively.
As Deutsche Rohstoff AG gears up for its virtual Capital Markets Day on 22 November 2023, stakeholders and investors alike are keenly anticipating further insights into the company’s strategic initiatives and financial planning.
In summary, Deutsche Rohstoff AG’s record-breaking quarter is a testament to its strategic foresight, operational excellence, and financial acumen. The company’s robust hedging strategy, aggressive investment in production capabilities, and solid financial standing position it favorably for sustained growth and profitability in the dynamic commodities market.
Read the press release: https://rohstoff.de/en/record-result-in-q3-2023-and-confirmation-of-guidance/
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