Deutsche Rohstoff (DR0) Q2 2024 earnings summary

Executive summary

• Achieved record half-year revenue of EUR 112.2m, up 49% year-over-year, driven by expanded oil & gas production in the US and favorable oil prices.

• Group production reached 14,763 BOEPD, a 40% increase compared to 1H23, with significant growth in Wyoming.

• EBITDA rose 50% to EUR 83.8m, and net income increased 16% to EUR 24.8m year-over-year.

• Equity climbed to EUR 212.5m, with an equity ratio of 41.5%.

• 15 new wells brought into production, including 10 in a JV with Oxy; continued operational expansion in Wyoming and Colorado.

Financial highlights

• Revenue: EUR 112.2m (+49% YoY); EBITDA: EUR 83.8m (+50% YoY); EBIT: EUR 44.1m (+90% YoY).

• Net income: EUR 24.8m (+16% YoY); EPS: EUR 5.0 (+25% YoY).

• Operating cash flow: EUR 84.9m (+19% YoY); Free cash flow: EUR -28.9m (improved YoY).

• Investments totaled EUR 113.8m (+12% YoY), mainly in new drilling programs.

• Net debt increased to EUR 126.0m due to investments and dividend payments; gearing ratio at 0.7.

Outlook and guidance

• 2024 guidance: Revenue EUR 210–230m, EBITDA EUR 160–180m, production 14,700–15,700 BOEPD.

• 2025 guidance: Revenue EUR 180–200m, EBITDA EUR 125–145m, production 8,800–9,400 BOPD.

• Elevated scenario assumes higher oil/gas prices, potentially increasing revenue and EBITDA by EUR 25–30m and EUR 20–25m, respectively.

• Planned investments: EUR 145–165m in 2024, EUR 100–110m in 2025, focused on new wells in Wyoming.