Wintershall Dea today reported its Q4 and Full Year 2023 Results.

FY 2023 SUMMARY: (1)

• Stable operational performance, average daily production of 323,000 boe, 1% higher YoY, slightly below plan for the year, due to unplanned maintenance in partner operated fields and third-party facilities in Norway, as well as Dvalin commissioning;
• Robust underlying financial performance:

  • EBITDAX €4.2 billion, 29% lower YoY amid lower commodity price environment, with TTF and Brent -65% and -18% YoY respectively;

  • Adjusted net income €513 million, 45% lower YoY;

  • Free cash flow of €-27 million;

  • Capex €1.2 billion, in line with revised FY guidance of €1.0 – 1.2 billion, 33% higher YoY due to higher development activity particularly in Latin America and MENA regions;

  • Cash and cash equivalents of €1.2 billion;

  • Net debt of €2.4 billion, leverage of 0.6x;

  • Outstanding €901 million 2023 Senior Notes repaid;
• Business Combination Agreement with Harbour Energy:

  • Our shareholders and Harbour Energy aim to create a large, geographically diverse and independent oil and gas company with strong free cash flow to support enhanced shareholder returns and continued growth;

  • ‘Target Portfolio’ consists of producing and development assets as well as exploration rights in Northern Europe, Latin America, MENA and CCS licences;

  • Agreed enterprise value for the Wintershall Dea assets amounts to $11.2 billion, including outstanding bonds of Wintershall Dea;

  • Legal separation of Russia-related business is ongoing; BASF and LetterOne will remain the owners of the company holding the Russia-related business;

  • Staff reduction of ~850 employees planned; Restructuring provisions of €386 million recognised in 2023;
Transaction closing is expected for Q4 2024;
• Project development:
  • Norway – Production from own operated Nova field ramped up to planned levels during the year; Production start from own operated Dvalin field; Maria Phase 2 subsea template in Norway successfully installed, start-up planned for 2025;
  • Argentina – Fénix project progressing ahead of schedule, start-up is now expected for Q4 2024;
  • Mexico – Successful own-operated Kan prospect, preliminary volume estimate of 200 to 300 million boe in place;
  • Egypt – FID for Raven West development (West Nile Delta), start-up planned for Q2 2025;
• Other developments:
  • Norway – Successful appraisal of Bergknapp and Ofelia discoveries; 8 PDO’s approved by Norwegian ME;
  • Mexico – Acquisition of a 37% interest in producing Hokchi-Block closed;
  • Carbon Management and Hydrogen:
    • CCS portfolio continues to progress with 3 additional licences acquired; Among top five North Sea CCS player with portfolio of 5 offshore licences in 3 countries;
  • Russia – Formally expropriated as shareholder in Russian JVs with Gazprom, following the de facto economic expropriation that had already occurred in 2022;

  • Sustainalytics ESG Top-Rated Company for the fourth year in a row.   
    

HIGHLIGHTS: (1)