Wintershall Dea books quarterly loss, cuts capex

  • Business & Finance

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 €78 million ($85.4 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“.

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