Mannheim. The management board of Deutsche Rohstoff AG has adjusted the projected consolidated group net profit for 2016 after receipt of draft financial statements of Deutsche Rohstoff AG and the groups US subsidiaries. The adjusted forecast is based on unaudited and interim figures.
The group net profit after taxes, which as part of the last intermediate financial results was forecasted to be around EUR 8-10 million, is now expected to be significantly lower. Based on current interim numbers the net profit is expected to be slightly below last year’s results (EUR 0.5 million). The main reason is the later than forecasted start of oil production in the 4th Quarter 2016 which has shifted revenues from 2016 into the 1st Quarter 2017. Furthermore, positive effects relating to the valuation of current and non-current assets will be lower than expected and the anticipated tax refund of more than USD 10 million for Deutsche Rohstoff USA, Inc. as the holding company for the US subsidiary will only to a small extent contribute to a positive tax effect.
The adjusted forecast currently does not contain any asset impairment. Some effects of the re-evaluation of balance sheet items may be realized as part of the audit process in order to prevent balance sheet risks.
Deutsche Rohstoff AG continues to expect a significant positive annual net profit and the management board still anticipates to be able to propose to the annual shareholder meeting the distribution of a dividend for the year 2016 at least at the same level as last year.
Thomas Gutschlag, CEO of Deutsche Rohstoff AG, comments: „The adjusted forecast mainly results from the shift of activities into the new year. In 2016 we have built a solid foundation for a successful year 2017, which is clearly underpinned by the latest oil production results. The good groundwork laid in the previous years will pay-off even more in the years to come.”
Mannheim, 15 February 2017
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