Annual Report 2019 and new forecast for 2020 published, dividend proposal of 0,10 EUR

Following the withdrawal of its previous forecast (see ad hoc release dated 6 April 2020), Deutsche Rohstoff AG publishes a new forecast for the financial year 2020 which takes into account the effects of the Covid-19 pandemic and the current situation of the global oil market.
Cub Creek Olander-Bohrplatz Sunset

Mannheim. Following the withdrawal of its previous forecast (see ad hoc release dated 6 April 2020), Deutsche Rohstoff AG publishes a new forecast for the financial year 2020 which takes into account the effects of the Covid-19 pandemic and the current situation of the global oil market.

For the year 2020, consolidated revenue of EUR 33 to 37 million (previous year: EUR 41.2 million) with EBITDA of around EUR 15 million (previous year: EUR 22.7 million) is now forecasted. Negative consolidated net income in the mid single-digit million Euro range (previous year: EUR 0.2 million) is expected. Possible unscheduled write-downs and income or losses from securities transactions are not part of the forecast. The outlook is subject to uncertainties regarding the further development of the oil price. It is based on the assumption of an average oil price of 20 USD/barrel in the second quarter, 30 USD/barrel in the second half of the year and an exchange rate of 1.10 EUR/USD. The forecast is based on the assumption that less than 50  percent of the volumes still expected at the beginning of 2020 will probably be produced Group-wide in order to conserve resources and reserves for an improved price environment.

For 2020 as a whole, the Group expects net production of around 3,200 to 3,600 barrels of oil equivalent per day. The barrels of oil produced are 100 % hedged with forward contracts and are therefore sold at an average price of USD 58 per barrel.

The Management and Supervisory Boards will propose a dividend of EUR 0.10 per share (previous year: EUR 0.70 per share) to the Annual General Meeting, which will be held in Mannheim on 15 July 2019 as a virtual Annual General Meeting.

EXPLANATORY SECTION

Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: “The Covid-19 crisis will have a negative impact on our oil and gas production and thus also on sales and earnings this year. Due to the high automation of our production we are able to adjust production volumes very quickly and flexibly to price developments. A further increase in production is also possible at short notice. This would make economic sense from an oil price of around USD 35 per barrel. We started the fiscal year with a high level of liquidity and have hedged the now planned production volume in terms of price. Accordingly, we are also well positioned for the crisis and can take advantage of investment opportunities in the current market consolidation.”

As already reported in the context of the publication of the preliminary figures, the Deutsche Rohstoff Group achieved sales revenues of EUR 41.2 million (previous year: EUR 109.1 million), EBITDA of EUR 22.7 million (previous year: EUR 97.9 million) and consolidated net income of EUR 0.2 million (previous year: EUR 17.9 million; all figures according to HGB and audited) in the financial year 2019. All other key figures in the balance sheet and income statement have also changed only slightly compared to the preliminary figures.

The annual report for the financial year 2019 of Deutsche Rohstoff Group is available on the company’s homepage at www.rohstoff.de. An English version will follow shortly.

For the definition of EBITDA we refer to the homepage of Deutsche Rohstoff AG at http://rohstoff.de/en/apm/.

Mannheim, 11 May 2020

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, copper, rare earths, tungsten and tin complete the portfolio. Further information can be found at www.rohstoff.de

Contact

Deutsche Rohstoff AG
Dr. Thomas Gutschlag, CEO
Phone +49 621 490 817 0
info@rohstoff.de

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