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Deutsche Rohstoff AG Shatters Records: Q3 Earnings Soar Amidst Strategic Hedging and Production Triumphs

[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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Disclaimer
All transactions are carried 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 provide 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 relate to The SiLLC Assembly International.

The author(s) of this article may or may not hold a position in the mentioned stock. None of the companies discussed in the above article have paid for this content. The information provided in this article should not be considered financial advice, and readers should always do their own research before making investment decisions. However, as with any investment, there are potential risks and uncertainties to consider, such as potential regulatory changes, market volatility, and competition from other players in the industry. It is important for investors to carefully monitor this stock and its performance over time to make informed decisions about their investments. This site is for entertainment purposes only. The owner of this site is not an investment advisor, financial planner, nor legal or tax professional and articles here are of an opinion and general nature and should not be relied upon for individual circumstances.

This article is for informational purposes only and should not be considered financial advice. Investing in stocks involves risk, and readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.

Deutsche Rohstoff Group Starts 2023 with Strong Q1 Earnings and Increased Production

May 11, 2023 [crocon media – msch] – Deutsche Rohstoff Group has reported a strong start to 2023, with increased earnings and growth in oil and gas production. In Q1 2023, the company generated earnings of EUR 14.6 million, corresponding to EUR 2.86 per share, which is an improvement from the previous year’s EUR 12.8 million and EUR 2.36 per share. Key highlights include:

Revenue of EUR 42.7 million, a 50% increase from the previous year’s EUR 28.1 million
EBITDA at EUR 32.3 million, significantly higher than the previous year’s EUR 25.2 million
Operating cash flow of EUR 42.9 million, compared to EUR 6.8 million in the previous year
Oil and gas production growth of over 38%, amounting to 976,832 barrels of oil equivalent (BOE) and 477,191 barrels of oil (BO)
Net income from hedging transactions balanced, compared to EUR -10.5 million losses in the previous year
Equity ratio surpassing 40% for the first time since 2015

In the first quarter, the average realized oil price after hedges was USD 74.62/bbl, with WTI trading at an average of USD 75.93/bbl. The consolidated balance sheet reflects the positive results, with consolidated equity increasing to EUR 144.8 million at the end of Q1 2023 and the equity ratio reaching 40.2%.

Cash flow from operating activities amounted to EUR 42.9 million, while cash flow from investing activities reached EUR 37.6 million. The company expects a significant increase in production volumes in the second half of the year, particularly with the start of production from ten wells in a joint venture with Oxy and three of 1876 Resources’ own wells.

For 2023, the company’s guidance projects revenues between EUR 150 and 170 million, EBITDA between EUR 115 and 130 million, and a clearly positive Group result.

Read the original press release for more details : https://rohstoff.de/en/eur-42-7-million-revenue-in-q1-2023/

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Disclaimer
All transactions are carried out by The SiLLC Assembly, 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 provide 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 relate to The SiLLC Assembly International.

Preliminary consolidated figures for 2021

Preliminary consolidated figures for 2021

In fiscal year 2021, the Deutsche Rohstoff Group generated sales of EUR 73.3 million, EBITDA of EUR 65.9 million and consolidated net income of EUR 26.1 million.

Consolidated net income rises to EUR 26.1 million/Sales and EBITDA in line with forecast

March 14, 2022 – Mannheim – Deutsche Rohstoff AG – In fiscal year 2021, the Deutsche Rohstoff Group generated sales of EUR 73.3 million (forecast EUR 68 to 73 million; previous year: EUR 38.7 million), earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 65.9 million (forecast EUR 64 to 67 million; previous year: EUR 23.9 million) and consolidated net income of EUR 26.1 million (previous year: consolidated net loss – EUR 16.1 million). Sales and EBITDA are thus in line with the increased forecast published in January (see release dated 20 January 2022). Overall, the forecast was raised three times during the year due to the good operating performance, acquisitions and rising oil & gas prices.

For the current year, the Executive Board expects a further significant increase in sales and EBITDA. According to the forecast published in January, sales will amount to EUR 126 to 134 million and EBITDA to EUR 97 to 102 million. This does not yet include revenues from the cooperation with Oxy, which may be incurred from Q4 2022 onwards. Drilling from one of the two well sites in which Salt Creek has an interest commenced on schedule in mid-February.

The equity and bond portfolio, which had been established from April 2020, contributed a realized return of EUR 17.5 million in 2021. There was also unrealized income of EUR 4.4 million as of 31 December 2021. Oil and gas hedging to hedge price risks resulted in a loss of EUR 14.3 in 2021 (previous year: gain of EUR 12 million).

Liquid funds (bank balances and securities held as current and non-current assets) available to the Group as of 31 December 2021 amounted to approximately EUR 36.8 million (previous year: EUR 36.0 million). Equity rose to EUR 79.8 million (previous year: EUR 45.6 million), increasing the equity ratio to 30% (previous year: 22%). Liabilities amounted to EUR 148 million (previous year: EUR 138.6 million). Net liabilities (cash and cash equivalents minus liabilities from bonds and to banks) decreased to EUR 80.5 million (previous year: EUR 92.4 million).

All figures for 2021 are preliminary and unaudited. Deutsche Rohstoff AG is expected to publish the audited consolidated financial statements and the annual report on 25 April 2022.

The Knight pad is on track for peak production. As reported, it is expected in Q2 2022. Currently, the wells are already producing 3,000 to 3,500 barrels of oil per day.

Mannheim, 14 March 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 complete the portfolio. Further information can be found at www.rohstoff.de

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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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.