Wintershall DEA records lower gas prices in the third quarter and plans a cost-saving program.

Wintershall DEA records lower gas prices in the third quarter and plans a cost-saving program.

According to a report from finanzen.net, the oil and gas company Wintershall DEA felt the effects of lower gas prices in the third quarter. Earnings before interest, taxes, depreciation and exploration costs (Ebitdax) fell by 53 percent year-on-year to 964 million euros. This is due to unplanned maintenance work at two gas fields in Norway, as well as costs such as those related to the austerity program and asset impairments in the North Africa and Middle East region. The bottom line is that the company recorded a quarterly loss of 535 million euros. Wintershall DEA is now planning a cost-saving program in which around 500 jobs will be cut, primarily in Germany. In addition, administrative expenses are reduced by changing the organizational structure. The annual production target has been confirmed and Wintershall DEA continues to target production of 325,000 to 340,000 barrels of oil equivalent per day for 2023.

From a financial expert's perspective, the lower profit at Wintershall DEA could have an impact on the market and the financial industry. BASF shares, which hold a good 70 percent of Wintershall DEA, rose by 0.53 percent in XETRA trading. This could indicate that investors are optimistic and view the austerity program and the planned cost-cutting measures positively. Reducing jobs and administrative expenses could help increase Wintershall DEA's profits and improve the company's financial position in the long term.

Planned production of 325,000 to 340,000 barrels of oil equivalent per day in the coming years could also have an impact on the market. Higher production could lead to greater supply in the market and influence oil and gas prices. This could, in turn, impact other companies in the industry and potentially lead to a drop in prices.

Overall, the current situation at Wintershall DEA could lead the company to rethink its strategy and take measures to increase its profitability. This could have long-term positive effects on the market and the financial industry. However, it remains to be seen how gas prices and global demand for oil and gas will develop, as these factors will also play a role in Wintershall DEA's future development.