Wintershall grows successfully in 2013: Net income of 1.8 billion euros (+48 percent)

Sales of the BASF subsidiary rose by 16 percent to 14.8 billion euros (2012: 12.7). At 132 million barrels of oil equivalent (boe)*1, oil and gas production remained at the previous year’s high level despite the production stop in Libya. In 2014, the company anticipates a slight increase in income from operations before special items.

“We are on course and want to continue growing while adding value,” said Rainer Seele, Chairman of the Board of Executive Directors of Wintershall, at the company’s Annual Press Conference in Kassel. The integration of the acquired shares in the Brage (32.7 percent), Gjoa (15 percent) and Vega (30 percent) fields from Statoil in Norway from August 2013 and the accelerated expansion of natural gas production in Russia increased production in these countries significantly and created the foundations for the good result in 2013. This compensated for the decreased oil production from the onshore fields in Libya, which was suspended in July 2013 because of strikes at the export terminals. One-time special income from the sale of a 15 percent share in the Edvard Grieg field in Norway as well as the reclassification of GASCADE Gastransport GmbH*2 due to loss of control also contributed positively to the result. The sales volumes and sales of natural gas sold in 2013 were slightly above the previous year’s level, however, income declined, mostly as a result of pressure on retail margins*3.

“The good results in 2013 form part of a continuing successful decade in which we have increased oil and gas production by four percent a year on average. That is more than twice the industry average,” Seele said. In 2015 the company plans to further extend oil and gas production, to more than 160 million boe. “That corresponds to an increase in our production of more than 50 percent within a decade,” Seele explained. Wintershall will continue making a significant and reliable contribution to the success of the BASF Group, he added. To this end, four billion euros will be invested in expanding the oil and gas business, concentrating on Norway and Russia, in the next five years.

In the search for new crude oil and natural gas deposits, Wintershall finished drilling a total of 20 exploration and appraisal wells in 2013, of which eight were successful. With the Asha Noor exploration well in the southern Norwegian North Sea, Wintershall has discovered an additional crude oil reservoir, which the company operates itself. Two other appraisal wells in the Skarfjell discovery in Norway were also successful. The company also discovered a new crude oil reservoir (Hibonite) in the southern North Sea in Danish territorial waters near the Ravn field. In addition, the Ockley and Bonneville wells in the British North Sea were also successful. Both wells in concession 4N in Qatar confirmed hydrocarbon deposits of 450 million boe.

Wintershall’s proven crude oil and natural gas deposits totaled 1.5 billion boe at the end of 2013, 20 percent more than in the previous year. The company replenished 280 percent of the volumes produced in 2013. The reserve-to-production ratio, which is based on Wintershall’s share of production in 2013 and refers to the reserves at year end, is eleven years (2012: nine years).
“Our growth strategy focuses on expanding our oil and gas production in our core regions Europe, Russia, North Africa, South America and the Middle East. We are good at turning our plans into results and will continue to expand Wintershall, already Germany’s leading oil and gas producer, internationally,” Seele explained: “German engineering virtues are part of the basic equipment we will take with us. Furthermore, we have 120 years of history in searching for natural resources, so we will continue our commercial success with innovative technologies and targeted cooperation agreements.”