German exploration and production firm Wintershall has reported lower profit in 2014 compared to the year before, despite strong oil price in the second half of 2014.
Wintershall’s net income dropped to $1.6bn from $1.9bn in 2013, while its income from operations before special items (IBET) were deducted stood at $1.96bn, down from $2.03bn a year earlier.
Meanwhile, the company’s proven crude oil and natural gas reserves rose by 17% on the 2013 year-end figure to 1.7bn boe.
In 2014, Wintershall also upped the number of exploration and appraisal wells and hydrocarbon discoveries.
The German oil and gas giant has set production target of 190mn barrels of oil per day (bofd) by 2018.
Despite several months of interruptions in the past year, production in Libya increased to 136mn barrels of oil equivalent (boe), up from 132mn boe in 2013.
In Libya, Wintershall operates eight oil fields in the onshore concessions 96 and 97 and since February this year the company has been producing at a pace of 30,000 bopd.
In May 2014, the company started work on its first own-operated exploration well for the development of the Shuwaihat sour gas and condensate field in Abu Dhabi.
The project is in partnership with ADNOC and the Austrian oil and gas company OMV.
“Despite the low oil price, especially in the fourth quarter, in 2014 we achieved the second-best result in the company’s history,” said Wintershall CEO Rainer Seele.
“Future performance demands continuous investments and innovation.” However, he added, these must be weighed up carefully and be well-balanced.
“Wintershall will invest at least four billion euros in expanding its oil and gas activities during the next five years, in particular in Norway, Argentina and Russia. The strategy remains the same: we want to achieve more profitable growth at the source and continue our focused diversification.”
