Oil & Gas

1st Quarter 2016

• Considerable sales and earnings decline due to discontinued contribution from gas trading and storage business as well as falling oil and gas prices

Sales in the Oil & Gas segment were considerably lower compared with the previous first quarter (volumes 2%, prices/currencies –4%, portfolio –86%). This was essentially a result of the asset swap completed with Gazprom at the end of September 2015, which meant that contributions from the natural gas trading and storage business in particular ceased as of the fourth quarter of 2015. In the continuing oil and gas business, volumes grew by 12% compared with the first quarter of 2015, whereas price and currency effects were minus 27%. The price of a barrel of Brent blend crude oil in the first quarter of 2016 was $34 on average (first quarter of 2015: $54 per barrel). Gas prices on European spot markets also fell sharply compared with the previous first quarter. We were able to ramp up our production volumes, especially in Norway.

Income from operations before special items declined considerably, as well. Falling prices were the main reason for this, along with the divestiture of our gas trading and storage business to Gazprom. An additional factor was the reduced earnings contribution from our share in the Yuzhno Russkoye natural gas field. Net income decreased significantly.