General
Information
Last Update:
Mar. 10, 2011
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Part of the audited Consolidated Financial Statements and Management´s Analysis

Business review

  • Sales in 2010 decline; earnings improve slightly primarily due to high contribution from Exploration & Production
  • Construction starts on Nord Stream pipeline; delivery of first gas volumes expected in October 2011
  • Work continues on Jemgum natural gas storage facility and OPAL pipeline (Baltic Sea Pipeline Link)
  • The oil price in 2011 is expected to be higher than the 2010 average price; our planning is based on the following annual average assumptions: oil price of $90 per barrel, euro/dollar exchange rate of $1.35 per euro
  • Outlook 2011: significant increase in sales; substantial improvement in earnings

Sales by business sector

Oil & Gas – Sales by business sector (pie chart)

Sales to third parties in the Oil & Gas segment in 2010 decreased by €565 million to €10,791 million (volumes –2%, prices/currencies –3%). In contrast, income from operations improved by €45 million to €2,334 million. Net income increased by €211 million to €923 million.

We expect the oil price in 2011 to be higher than the average price seen in 2010. Our planning is based on an oil price of $90 per barrel and an average euro/dollar exchange rate of $1.35 per euro in 2011. Based on these assumptions, we aim for a significant increase in sales and a substantial improvement in earnings.

Oil & Gas – Sales by region
(location of customer)

Oil & Gas – Sales by region (pie chart)

Sales – Oil & Gas
(million €)

Oil & Gas – Sales (bar chart)

Factors influencing sales – Oil & Gas

Oil & Gas – Factors influencing sales (bar chart)

Income from operations – Oil & Gas
(million €)

Oil & Gas – Income from operations (bar chart)
  Download (Download XLS xls, 19 kB)

Segment data Oil & Gas1 (million €)

 

 

 

2010

2009

Change in %

1

Supplementary information on oil and gas producing activities

2

In the Oil & Gas segment, non-compensable foreign income taxes for oil production are deducted.

3

Information on the net income of the Oil & Gas segment can be found in the reconciliation reporting Oil & Gas in the Notes to the Consolidated Financial Statements

Sales to third parties

10,791

11,356

(5.0)

Thereof Exploration & Production

3,819

3,847

(0.7)

Natural Gas Trading

6,972

7,509

(7.2)

Intersegmental transfers

852

702

21.4

Sales including intersegmental transfers

11,643

12,058

(3.4)

Income from operations before depreciation and amortization (EBITDA)

2,977

2,830

5.2

Thereof Exploration & Production

2,428

2,188

11.0

Natural Gas Trading

549

642

(14.5)

EBITDA margin (%)

27.6

24.9

Income from operations (EBIT) before special items

2,430

2,289

6.2

Thereof Exploration & Production

2,014

1,781

13.1

Natural Gas Trading

416

508

(18.1)

Income from operations (EBIT)

2,334

2,289

2.0

Thereof Exploration & Production

1,918

1,781

7.7

Natural Gas Trading

416

508

(18.1)

Income from operations (EBIT) after cost of capital2

588

695

(15.4)

Assets

9,150

8,301

10.2

Thereof Exploration & Production

5,158

4,997

3.2

Natural Gas Trading

3,992

3,304

20.8

Exploration expenses

190

143

32.9

Additions to property, plant and equipment and intangible assets

996

1,012

(1.6)

Income taxes on oil-producing operations non-compensable with German corporate income tax

983

870

13.0

Net income3

923

712

29.6

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