Wintershall Dea Profits Dive, Output Stable

German oil and gas producer Wintershall Dea kept output stable in the second quarter of 2020, averaging 606,000 barrels of oil equivalent (boe)/day, compared with 614,000 boe/d in Q2 2020, it reported August 19. But a more than halving of the average oil and gas price cut adjusted net income to €90 ($107)mn from €330mn and pre-tax and exploration (Ebitdax) earnings to €254mn from €683mn in Q2 2019. Production and development capex was €356mn, but it did not provide a figure for Q2 2019.

CEO Mario Mehren said the quarter "was without doubt one of the most challenging that the industry has seen in a long time. However, I am pleased with the underlying business performance, and the way the company is dealing with the challenges that face us."

Despite Covid-19 the company remains "well positioned," cutting its production costs from $4.1/boe to $3.5/boe, "providing a robust and resilient cost structure. And it "reacted quickly and decisively" to protect its balance sheet.

Its 2020 project delivery is on track: the Dvalin gas project in  Norway is due on stream as planned around the turn of the
year. Achimov 4A and 5A in Russia and Raven in Egypt will follow at the beginning of 2021. "By delivering in this way we can continue to successfully navigate the uncertainty brought about the pandemic,” it said.