EUR 8.2 million profit realized so far in the first quarter/Oasis Petroleum with strong performance
Mannheim. The equity and bond portfolio, which Deutsche Rohstoff AG built up in oil and gold stocks and bonds last year in response to the COVID crisis, continues to deliver very good results. In the first quarter of 2021 (reporting date 15 March), realized gains amounted to EUR 8.2 million. Unrealized gains still existed in the amount of EUR 3.8 million.
In the past few days, the shares of Oasis Petroleum (NASDAQ: OAS) were sold in full. In total, the position accrued a gain of EUR 7.5 million, of which around EUR 6.4 million in the first quarter of 2021.
In the second and third quarters of 2020, a bond of Oasis Petroleum had been purchased for the portfolio at very low prices. The calculations of the DRAG team showed, that if the debt were restructured, bondholders would receive shares in the company at a price significantly higher than the purchase price of the bonds. Oasis conducted the Chapter 11 restructuring process from September through the end of November. In early December, existing bondholders received the company’s new shares. In the first quarter of 2021, the share price rose steadily. The average selling price now realized represents more than a threefold increase compared with the purchase price.
Mannheim, 18 March 2021
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