Wintershall Dea: High loss of millions due to low gas prices and depreciation

Wintershall Dea: High loss of millions due to low gas prices and depreciation

Wintershall Dea's oil and gas production remained largely stable in the summer, but prices fell significantly compared to the previous year. This, together with special costs, resulted in the company recording a loss of €535 million. In the same period last year, Wintershall Dea made a profit of 388 million euros. The losses were mainly caused by impairments and restructuring provisions totaling 587 million euros. A majority of the impairments are due to the company's 10 percent interest in the Ghasha gas and condensate field in the United Arab Emirates. The increased capital costs have led to revised planning assumptions. The company is also implementing a savings program that will result in the reduction of around 300 jobs in Germany. The company hopes to achieve annual savings of 200 million euros through these measures. The legal separation from the Russian business, which was expropriated due to the Ukraine conflict, is scheduled to be completed by mid-2024. In the third quarter, the company's operating profit fell by more than half to 964 million euros due to low gas prices.

According to a report by www.n-tv.de, Wintershall Dea recorded a loss of 535 million euros in the summer. These financial losses were mainly caused by impairments and restructuring provisions totaling 587 million euros. Low gas prices severely impacted the company's operating results in the third quarter. Wintershall Dea expects production of 325,000 to 340,000 barrels of oil equivalent per day for the year as a whole. The reduction of around 300 jobs in Germany as part of the austerity program will lead to further savings of 200 million euros. The separation from the Russian business is expected to be completed by mid-2024.