Deutsche Rohstoff AG: Strong growth in sales and earnings in the first quarter
Mannheim. In the first quarter of 2017, Deutsche Rohstoff Group generated sales in the amount of EUR 20.9 million (1st quarter of 2016: EUR 0.3 million) and more than doubled its sales compared to the full year 2016 (2016: 9.2 Mio. EUR). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 17.2 million (1st quarter of 2016: EUR -2.9 million) which is three times as high as for the full year 2016 (2016: 6.4 Mio. EUR). Even the group's profit of EUR 5.0 million (1st quarter of 2016: EUR -3.6 million) already exceeded the previous year by far. The increase in sales results from the oil and gas production of the three US subsidiaries. Total net production, which is the share of production that is attributed to Deutsche Rohstoff, amounted to 582,994 BOE, of which 435,885 barrels are oil, the remainder represents natural gas and condensates. The largest revenue contribution came from the subsidiary Cub Creek. Cub Creek drilled 21 wells in the second half of 2016 and successfully brought all wells into production by the end of the year.
Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: "The results of the first quarter show the profit potential of our activities in the US. We still have a lot of wells with the same quality in our portfolio. The development is just beginning."
Cub Creek has started further drilling at the end of March. Those wells will be completed by the end of this week, as Deutsche Rohstoff and Cub Creek have decided to drill only seven instead of the originally planned nine wells. Management expects a higher return per well by reducing the number of wells due to lower investment cost and a higher recovery per well. The new wells are expected to commence production in early August. For the full year 2017, Cub Creek is planning to drill more wells than in 2016.
The quarterly report can be downloaded on the companies website:
www.rohstoff.de/en/investor-relations/
Mannheim, 11 May 2017
Deutsche Rohstoff identifies, develops and divests attractive resource projects in North America, Australia and Europe. The focus is on the development of oil and gas opportunities within the United States. Metals, such as gold, copper, rare earth elements, tungsten and tin complete our portfolio. For more information please visit www.rohstoff.de.
Contact:
Deutsche Rohstoff AG
Thomas Gutschlag
Tel. +49 621 490 817 0
info@rohstoff.de