Preliminary quarterly figures/Forecast for the full year 2017
Mannheim. Deutsche Rohstoff Group completed the fiscal year 2016 with a consolidated net profit of EUR 0.1 million (previous year: EUR 0.5 million) (all figures according to German GAAP/HGB and audited). Deutsche Rohstoff AG, the parent company, generated a net profit of EUR 14.0 million for the year. The Management and Supervisory Board will propose a further increased dividend of EUR 0.60 per share (previous year: EUR 0.55) to the Annual General Meeting, which will be held in Mannheim on 7 July 2017.
In the financial year 2016, sales in the Group amounted to EUR 9.2 million (previous year: EUR 1.9 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 6.4 million (previous year: EUR 4.9 million). Sales mainly originate from oil and gas sales of the three US companies Cub Creek Energy, Elster Oil & Gas and Salt Creek Oil & Gas. Other operating income contributed with EUR 10.5 million (previous year: EUR 8.5 million) to the total operating performance, which increased to EUR 21.4 million (previous year: EUR 11.3 million). For definition of Total Operating Performance and EBITDA please see the company’s website under https://rohstoff.de/en/apm/
The Group’s equity rose to EUR 66.1 million (previous year: EUR 61,8 million) as of 31 December 2016. Cash (bank deposits and securities in current and fixed assets) amounted to EUR 35.6 million (previous year: EUR 83.0 million). The decrease in cash and cash equivalents is due to the high investments in the oil and gas production in the US, which totaled more than USD 90 million in 2016. The high investments also lead to an expected tax refund of USD 13 million for 2016 to Deutsche Rohstoff USA, the parent company of the three US subsidiaries.
In the first quarter of 2017, the Group generated sales of EUR 21 million, an EBITDA of EUR 17 million and a group result of EUR 5 million, according to preliminary figures (German Gaap, unaudited). Final quarterly figures will be published on May 11th.
For the full year 2017, the Management Board expects Group sales of EUR 55 to 65 million as well as an EBITDA of at least EUR 40 million. This forecast is based on the assumption that the existing producing wells will continue to produce according to current forecasted production profiles, the Haley wells, that are currently being drilled, will commence production in August and the additional wells, which are expected to be drilled from the second half of May on will not contribute to revenue and earnings in 2017. The forecast expects Salt Creek to participate in drilling and production start of approximately 10 wells during the course of the year. The forecast is based on the assumption of an average oil price of USD 50/barrel and an exchange rate EUR/USD of 1.08. Sales in the oil and gas division in the US are reported after deducting third party working interest, royalties and production-related taxes.
Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: “In 2016, we significantly invested in our business in the US, which is mainly visible in the balance sheet. In the first quarter of 2017, these investments show a high impact on the result and revenues. We are expecting a solid performance in 2017 and a further increase in earnings and revenues for 2018. ”
The consolidated financial statement of Deutsche Rohstoff Group, including the Group’s management report, as well as the financial statement of Deutsche Rohstoff AG, are now available on the Company’s website. The Annual Report has also been published today. Currently only the German version is available, the English version will follow shortly.
Mannheim, 8 May 2017
Deutsche Rohstoff identifies, develops and divests attractive resource projects in North America, Australia and Europe. The focus is on the development of oil and gas opportunities within the United States. Metals, such as gold, copper, rare earth elements, tungsten and tin complete our portfolio. For more information please visit www.rohstoff.de.