Wintershall Dea, Europe’s leading independent gas and oil company, has 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 Russia-Ukraine war-related impairments and losses:
- 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.
(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.
Source: Wintershall Dea
