Deutsche Rohstoff AG

Earnings Release • Aug 14, 2020

News Details

Ad-hoc | 14 August 2020 12:08

Deutsche Rohstoff AG: Half-year financials published

Deutsche Rohstoff AG / Key word(s): Half Year Results

Deutsche Rohstoff AG: Half-year financials published

14-Aug-2020 / 12:08 CET/CEST

Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP – a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

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**Deutsche Rohstoff: Half-year financials published

Sales and EBITDA above guidance/Impairment weighs on earnings/Forecast adjusted**

Mannheim. Deutsche Rohstoff reports a loss of EUR 13.4 million in the first half of 2020. This is due to non-cash impairment charges of EUR 17.2 million due to lower oil and gas price forecasts. Around EUR 10.7 million of impairments were realized for Elster Oil & Gas producing assets and EUR 6.5 million for the shares held in Northern Oil & Gas.

Consolidated net income before impairment losses amounted to EUR 1.2 million. Revenues amounted to EUR 26.1 million (previous year: EUR 24.2 million) and EBITDA to EUR 15.8 million (previous year: EUR 15.2 million). Income from hedging, which is reported as revenues, amounted to EUR 10.1 million.

The 2020 full year forecast changes as follows:

• Revenues are expected to be at the higher end of the forecast of EUR 33 to 37 million
• EBITDA is now expected to reach EUR 15 to 18 million (previously EUR 15 million).
• The consolidated loss will increase to around EUR 20 million (previously: single-digit negative consolidated net income) due to the impairment charges.

The forecast is based on an assumed oil price of USD 40 in the second half of 2020 and a EUR/USD exchange rate of 1.17.

The interim report for the first half of 2020 of Deutsche Rohstoff Group will be available next week on the company’s homepage at www.rohstoff.de.

For the definition of the term EBITDA we refer to the homepage of Deutsche Rohstoff AG at http://rohstoff.de/apm/.

Mannheim, 14 August 2020

Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten complete the portfolio. Further information can be found at www.rohstoff.de

Contact

Deutsche Rohstoff AG

Dr. Thomas Gutschlag, CEO

Phone +49 621 490 817 0

info@rohstoff.de

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Information and Explanation of the Issuer to this News:

Explanatory section

Thomas Gutschlag, CEO of Deutsche Rohstoff AG, commented: ‘The COVID-19 crisis and the ongoing difficulties in the oil market have prompted us to recognize substantial impairment charges as part of our half year financials. With the reduced book values we assume that we have significantly reduced balance sheet risks. We now see a good basis for our targeted growth in the second half of the year and in the coming years. We have laid further foundations for this with our successful share portfolio and the acquisition of large areas of land in Wyoming.’

Unrealized gains from the purchase of shares and bonds (see press release of 13 July 2020), currently amounting to around EUR 8 million, is neither part of the half-year result nor of the forecast.

Group liabilities decreased by EUR 26.0 million to EUR 143.9 million as of 30 June 2020 compared to 31 March 2020. Liquid funds (bank balances and securities held as current and non-current assets) amounted to EUR 46.2 million as of 30 June 2020. In the coming months, Deutsche Rohstoff USA will receive an additional tax refund of probably USD 7.5 million. The equity ratio as of 30 June 2020 was 26.2% (previous year: 27.8%).

A resumption of full production at Cub Creeks legacy pads is planned in the coming weeks, which is expected to increase current production by around 500 barrels of oil per day from October onwards. The Olander pad is not expected to resume production until prices have recovered even further. Net Production has been significantly reduced since April and at the end of the second quarter was at 1,000 barrels of oil per day, which is about 25% of capacity, which will average 4,000 barrels of oil for 6 months when all wells are producing at full capacity again.

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Language:	English
Company:	Deutsche Rohstoff AG
	Q7, 24
	68161 Mannheim
	Germany
Phone:	0621 490 817 0
Fax:	0621 490 817 22
E-mail:	gutschlag@rohstoff.de
Internet:	www.rohstoff.de
ISIN:	DE000A0XYG76, DE000A1R07G4,
WKN:	A0XYG7, A1R07G
Indices:	Scale 30
Listed:	Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	1118335

End of Announcement	DGAP News Service