Preliminary Group figures for 2023 confirm record year

• Sales in 2023 at EUR 196.6 million, 19% above previous year
• EBITDA 2023 at EUR 158.2 million, 14% above previous year
• Consolidated net profit after minority interests rises to EUR 65.1 million
• Earnings per share increase by 7% to EUR 13.01 (previous year EUR 12.15)
• Q4 2023: strongest quarter in the Group's history to date with sales of EUR 64.0 million and EBITDA of EUR 56.5 million

Jan-Philipp Weitz, CEO, commented: "With sales of over EUR 196 million and a profit of EUR 65 million, Deutsche Rohstoff AG has not only achieved a new record both operationally and in terms of profitability, but has also confirmed that the Group has established itself at this high level. We have created an excellent basis for the current year and the coming years and are confident that we can continue to generate earnings (EBITDA) of well over EUR 100 million."


Strong increase in sales and EBITDA

In the 2023 financial year, Deutsche Rohstoff Group generated sales of EUR 196.5 million (forecast: EUR 188 to 198 million; previous year: EUR 165.4 million), earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 158.2 million (forecast: EUR 152 to 162 million; previous year: EUR 139.1 million) and consolidated earnings after minority interests of EUR 65.1 million or EUR 13.01 per share (previous year: EUR 60.8 million or EUR 12.15 per share). Consolidated earnings before minority interests amounted to EUR 67.5 million (previous year: EUR 66.2 million). Sales and EBITDA are therefore at the upper end of the increased forecast range published in November (see press release dated 14 November 2023). Overall, the forecast was raised twice in the course of 2023 due to the good operating performance, the expansion of the drilling programs and the sale of the Utah acreage.


Operating performance drives results

With around 15,300 BOEPD, the fourth quarter was the highest-volume quarter in the company's history to date. This is also reflected in record sales of EUR 64.0 million, EBITDA of EUR 56.5 million and a consolidated profit of EUR 22.5 million in the fourth quarter.

The very strong operating performance in 2023 with production of around 12,700 BOEPD (barrels of oil equivalent per day; previous year: 9,600 BOEPD) forms the basis for this best consolidated result in the company's history to date. For the year as a whole, around USD 74/BBL (previous year: USD 76.50/BBL) was realized for oil after hedges. The average realized price after hedges for natural gas was around USD 2.90/mcf (previous year: USD 4.25/mcf). The significant increase in sales and earnings is therefore mainly due to higher production volumes.

In addition to the high income from operating activities, around EUR 20.7 million (previous year: EUR 24.9 million) in other operating income was generated in 2023. Around EUR 18.1 million of this is attributable to the sale of space in Utah and the sale of shares in fixed and current assets.

The cost of materials rose from EUR 30.4 million in 2022 to EUR 34.3 million in 2023 as a result of higher production. The cost of materials per BOE fell by around 12% to around USD 8.0/BOE (previous year: USD 9.04/BOE).

At 7%, consolidated net income rose at a slightly lower rate than sales and EBITDA (14%), in particular due to increased depreciation and amortization of EUR 65.1 million (previous year: EUR 47.7 million) as a result of higher production volumes and more capital-intensive drilling in Wyoming. Interest expenses rose to EUR 9.7 million (previous year: EUR 6.9 million) due to increased bank and bond liabilities and higher interest rates in the USA.


Solid balance sheet supports further growth

As of 31 December 2023, the Group had cash and cash equivalents (bank balances and marketable securities) of around EUR 82.2 million (previous year: EUR 54.2 million) at its disposal. Equity increased to EUR 187.3 million (previous year: EUR 132.4 million). As in the previous year, the equity ratio amounted to 38.0% (previous year: 37.8%). The balance sheet total was EUR 493.5 million (previous year: EUR 350.3 million). Liabilities increased to EUR 205.0 million (previous year: EUR 149.1 million) and provisions to EUR 47.2 million (previous year: EUR 32.7 million). Net financial liabilities (liabilities from bonds and to banks less cash and cash equivalents) increased to EUR 79.1 million (previous year: EUR 55.7 million). The gearing ratio (net financial liabilities in relation to EBITDA) was 0.5 (previous year: 0.4).

Preliminary operating cash flow amounted to around EUR 135 million in 2023, while 2023 also marked record investments of around EUR 200 million in drilling and pipeline infrastructure. Adjusted for the sale of the Utah areas and other effects, cash flow from investments amounted to around EUR 145 million. Free cash flow before financing expenses such as interest, bond repayments and dividends was therefore negative by EUR 10 million.

Henning Döring, CFO, commented: "Thanks to the strong production and the Utah sale, we were able to finance the record investments in 2023 by 95% from operating cash flow. The gearing ratio has only increased slightly. This has created a solid basis for continuing our profitable growth in 2024 and further strengthening our balance sheet structure."

All figures for 2023 are preliminary and unaudited. Deutsche Rohstoff AG expects to publish the audited consolidated financial statements and the annual report on 23 April 2024.


Mannheim, 12 March 2024


Contact
Deutsche Rohstoff AG
Phone +49 621 490 817 0
info@rohstoff.de