Deutsche Rohstoff (DR0) Q3 2024 earnings summary

Executive summary

• Achieved strong operational performance in Q3 and first nine months of 2024, with significant cost reductions per well and record revenues and EBITDA, despite lower net income due to higher depreciation and a weaker US dollar.

• Production increased 24% year-over-year to 14,702 BOEPD, with oil share rising to 59% and realized oil price slightly below prior year at $74.01/bbl.

Financial highlights

• Revenue for the first nine months rose to EUR 171.6 million (up from EUR 132.6 million), EBITDA reached EUR 122.2 million (up from EUR 101.6 million), and net income was EUR 36.2 million (down from EUR 42.6 million).

• Equity increased to EUR 209.7 million, and the equity ratio improved to 41.4%.

• Net debt rose to EUR 134.2 million, with a low leverage ratio of 0.75 based on LTM EBITDA.

• Operating costs were USD 8.97/BOE, and depletion costs increased to USD 16.83/BOE.

Outlook and guidance

• Full-year 2024 revenue and EBITDA expected in the range of EUR 210–230 million and EUR 160–180 million, respectively.

• Production guidance for 2024 remains at 14,700–15,700 BOEPD.

• 2025 capital expenditure planned up to EUR 110 million, with drilling program decisions pending based on cost and market conditions.