Q4 and Full Year 2022 Results: Financial Flexibility and Strong Operational Basis
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Source
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Press Release
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Company
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Wintershall Dea GmbH |
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Tags
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Exploration, Hydrogen, Carbon Capture (CCS/CCUS), Production/Development, Discovery, Upstream Activities, Capital Spending, Guidance, Financial & Operating Data
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Date
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February 23, 2023
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Wintershall Dea, Europe’s leading independent gas and oil company, today reported its fourth quarter and full year 2022 results.
FY 2022 SUMMARY (EXCLUDING SEGMENT RUSSIA UNLESS STATED OTHERWISE):
- Stable operational performance, average daily production of 321,000 boe;
- Strong underlying financial performance driven by macroeconomic tailwinds and solid operations:
- EBITDAX €5.9 billion, up 91% YoY;
- Adjusted net income €928 million, up 130% YoY;
- Capex of €863 million, 9% lower YoY, below original 2022 guidance of €1.0-1.1 billion;
- Free cash flow of €2.5 billion, up 58% YoY;
- Year-end cash and cash equivalents of €3.1 billion;
- Net debt of €1.3 billion, leverage of 0.2x;
- Overall Group FY results (including segment Russia) impacted by significant impairments and losses due to Russia’s war against Ukraine:
- Group 2022 net loss of €4.8 billion, includes €7 billion one-off, non-cash losses related to the Russian upstream and associated midstream business;
- Project development:
- Norway, major projects Nova and Njord brought on stream;
- Norway, eight PDOs submitted, including own operated Maria Phase 2 and Dvalin North projects as well as six partner operated developments;
- Argentina, Fénix Final Investment Decision taken, first gas expected in 2025;
- Successful exploration campaign:
- Six nearfield discoveries in the Skarv, Gjøa, Aasta Hansteen and Oseberg areas in Norway with estimated gross resources of 88-286 mmboe;
- Natural gas discovery in the East Damanhour exploration block in Egypt, in close proximity to the Disouq field and infrastructure;
- Portfolio diversification through acquisitions of producing assets:
- Increased share in Reggane Nord gas project in Algeria through acquisition of 4.5% stake from Edison (subject to customary closing approvals);
- Acquisition of 37% stake in the Hokchi Block in Mexico from Hokchi Energy (subject to customary closing approvals);
- Carbon Management and Hydrogen:
- Collaboration agreement signed with Equinor on extensive CCS value chain development, connecting Germany and Norway;
- Awarded operatorship of “Luna” CO2 storage licence in Norwegian North Sea with potential to safely and reliably store more than 5 million tonnes CO2 per year;
- Start-up approval awarded for project “Greensand” in Denmark with first CO2 pilot injections expected in Q1 2023.
HIGHLIGHTS (EXCLUDING SEGMENT RUSSIA):
| Production (mboe/d)(1) |
323 |
333 |
-3% |
321 |
331 |
-3% |
| EBITDAX (€ million) |
1,258 |
1,128 |
12% |
5,924 |
3,103 |
91% |
| ANI (€ million) |
73 |
83 |
-12% |
928 |
403 |
130% |
| Production costs (€/boe) |
6.0 |
7.5 |
-20% |
5.8 |
5.6 |
4% |
| Capex (€ million)(2) |
226 |
278 |
-19% |
863 |
946 |
-9% |
| Free Cash Flow (€ million) |
151 |
643 |
-77% |
2,484 |
1,577 |
58% |
| Net Debt (€ million) |
1,303 |
2,804 |
-48% |
1,303 |
2,804 |
-48% |
| Leverage (x)(3) |
0.2 |
0.9 |
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0.2 |
0.9 |
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HIGHLIGHTS (INCLUDING SEGMENT RUSSIA):
| Production (mboe/d)(1) |
484 |
678 |
-29% |
597 |
634 |
-6% |
| EBITDAX (€ million) |
1,437 |
1,509 |
-5% |
7,675 |
3,832 |
100% |
| ANI (€ million) |
229 |
376 |
-39% |
2,357 |
950 |
148% |
| Production costs (€/boe) |
4.9 |
5.2 |
-6% |
4.4 |
4.0 |
10% |
| Capex (€ million)(2) |
227 |
280 |
-19% |
869 |
952 |
-9% |
| Free Cash Flow (€ million) |
251 |
878 |
-71% |
3,869 |
2,082 |
86% |
| Net Debt (€ million) |
1,303 |
2,510 |
-48% |
1,303 |
2,510 |
-48% |
| Leverage (x)(3) |
0.2 |
0.7 |
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0.2 |
0.7 |
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(1) Excluding Libya onshore production
(2) Production and development capex
(3) Net debt to LTM EBITDAX
2023 GUIDANCE:
- Production of 325,000-350,000 boe/d;
- Development capex of €1.2-1.4 billion;
- Exploration (and appraisal) budget of €200-250 million.
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