Oil and gas company Wintershall Dea has decided to reduce its capital expenditures for 2020 by 30 per cent after booking a loss in the first quarter of the year amid low oil price environment.
The company on Wednesday posted an adjusted net loss of €88 million ($106.2 million) for 1Q 2020.
This compares to an adjusted net income of €320 million ($350.4 million) in 1Q 2019.
WIntershall Dea’s production during the quarter was 626,000 boe/d, unchanged year-over-year.
The company reduced its full-year capex guidance by 30 per cent to €1.0-1.2 billion.
Exploration costs will be reduced by 20 per cent to €150-250 million.
The company’s common dividend has been suspended until further notice.
Mario Mehren , Wintershall Dea Chairman & CEO, said: “Looking at the first quarter 2020, the situation in the oil and gas markets has become even more challenging.
“ However, we are in a good position to weather the storm given our low-cost, gas heavy portfolio, stable cash flows from our midstream business and a healthy balance sheet.
“Against this challenging backdrop, we have taken decisive actions by reducing our capex by 30%, operating costs by 10% and as previously announced suspended our common dividend “.