EQS-Adhoc: Deutsche Rohstoff AG: EUR 20 million net income in the 3rd quarter

Deutsche Rohstoff AG: EUR 20 million net income in the third quarter

• EUR 52.6 million net income after 9 months
• Increased Forecast for 2022 and 2023
• Revenue and EBITDA 2022 slightly above the "increased price scenario" forecast
• Revenues in 2023 expected to be around 20 million higher than previously planned

Mannheim. In the first 9 months of 2022, Deutsche Rohstoff Group generated sales of EUR 118.2 million (previous year: EUR 53.2 million), earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 102.3 million (previous year: EUR 52.1 million) and consolidated net income of EUR 52.6 million (previous year: EUR 21.4 million). Other operating income in the third quarter amounted to EUR 5.6 million, of which around EUR 3.1 million came from currency gains. In the third quarter, production amounted to around 9,340 BOEPD.

Forecast 2022
Due to continued high commodity prices and the favorable EUR/USD exchange rate, as well as very stable production from existing wells in Colorado and Wyoming, the company is increasing its 2022 forecast based on the 9-month numbers as follows:

• Sales of EUR 152 to 157 million (previous forecast EUR 140 to 150 million)
• EBITDA EUR 128 to 133 million (previously EUR 120 to 130 million)

This forecast is based on an oil price of 85 USD/barrel, a EUR/USD exchange rate of 1.00 and a gas price of 6.00 USD in Q4 2022.

Despite the increased forecast and stable production from existing wells, the company expects production to be at the lower end of the forecast range of 9,300 to 10,000 BOEPD (barrels of oil equivalent per day). The start of production from some wells in Utah is expected to be delayed until the first quarter of 2023. In addition, gas production from the Knight pad is increasing slightly later than expected, not least due to slightly higher than expected oil production. This results in higher revenues despite a lower than expected BOE volume.

Forecast 2023
Due to the recently announced cooperation with Occidental, the start of production of the wells in Utah and generally positive production development in Colorado and Wyoming, Deutsche Rohstoff AG adjusts its forecast for revenues and EBITDA in 2023 as follows:

Base scenario

• Group sales: EUR 140 to 160 million (previously EUR 125 to 135 million)
• EBITDA: EUR 110 to 125 million (previously EUR 100 to 110 million)

Increased price scenario

• Group sales: EUR 155 to 175 million (previously EUR 140 to 150 million)
• EBITDA: EUR 125 to 140 million (previously EUR 115 to 125 million)

The assumptions for the basis of the forecast remain unchanged at a EUR/USD exchange rate of 1.12 EUR/USD, a Natural Gas price of USD 4, and a WTI price of USD 75 in the base scenario and USD 85 in the increased price scenario.

For the year 2024, the Management Board already expects revenues above EUR 120 million and EBITDA above EUR 100 million. This is based on only 4 additional net wells at Cub Creek until mid-2023, non-operated wells in Utah until mid-2023 and the already entered Occidental joint development.

For a definition of the term EBITDA, please refer to the Deutsche Rohstoff AG homepage at https://rohstoff.de/en/guidance/.

The detailed quarterly report will be published on Deutsche Rohstoffs website by the end of October.
Mannheim, 14 October 2022