Wintershall Dea demonstrated strong operational and financial performance for Q1 2022 even with the economic fallout of the Russia-Ukraine war, according to the company’s latest report.
Wintershall Dea’s Chief Financing Officer (CFO) Paul Smith said “We delivered exceptional operational performance across the portfolio during the quarter allowing us to produce 669,000 barrels of equivalent per day (boe/d).”
However, Wintershall Dea recorded net loss of EUR 1 billion during the Q1 due to Nord Stream 2 financing in addition to other Russia impairments of EUR 1.5 billion. Smith explained that the company achieved strong performance during 2022, despite the uncertainties of Ukraine’s war, in addition to dispositioning from interests in Argentina and Egypt.
He added that the company recorded earnings before interest, taxes, depreciation and amortization (EBITDAX) worth EUR 1.8 billion, up 161% year on year (YoY). It also achieved adjusted net income of EUR 669 million increasing by 291% YoY.
Moreover, the company decided to focus on low-cost and low-emissions assets. Thus, it announced its exit from Brazil and dispositioning the remaining shares in Aguada Federal and Bandurria Norte unconventional oil assets in Argentina.
In the same context, it assigned its entire interest in Gulf of Suez concessions to Egyptian General Petroleum Corporation (EGPC) after 40 years of operations, while maintaining its operations at assets in Disouq and the Western Delta.
At the meantime, Wintershall Dea’s CEO Mario Mehren announced that his company decided to keep its projects in Russia after conducting intensive discussions.
“After intensive discussions in the management board, we have decided to maintain our participation our existing projects in Russia. In the event of a withdrawal, billions in assets will have fallen to the Russian state,” Mehren said.
The CEO highlighted that his company has two strategic themes representing fundamental change at Wintershall Dea. “Firstly, portfolio strengthening outside Russia, to diversify European energy supply resources and to improve the resilience of our business even further,” Mehren declared.
He highlighted that Wintershall Dea has a commitment towards Europe in providing energy sources needed for economies and societies through building up on its existed investments such as with Norway, which is the second largest natural gas exporter to Europe, in addition to exploring growth opportunities in Algeria which the third largest gas exporter to Europe.
Mehren added also that the company is seeking more investments in hydrogen noting that it is working towards carbon management and hydrogen business that can abate up to 20 – 30 million tons of CO2 per year by 2040.