✓ audited

Business review

Oil & Gas segment

  • Sales increase considerably due to higher volumes and prices
  • Earnings improve significantly thanks to continuous production of crude oil in Libya; net income also rises substantially
  • Oil price in 2013 expected to remain around previous year’s level; planning based on the following annual average assumptions: oil price of $110 per barrel, euro/dollar exchange rate of $1.30 per euro
  • Outlook 2013: sales and earnings above previous year’s level, mainly driven by volumes

In the Oil & Gas segment, sales to third parties in 2012 rose by €4,649 million to €16,700 million, driven by higher volumes and prices (volumes 29%, prices/currencies 10%). Income from operations grew by €1,793 million to €3,904 million. This was mainly the result of the continuous production of crude oil in Libya, which had been suspended there from February to October 2011. Net income also grew; at €1,201 million, it exceeded the level of the previous year by €137 million.

Sales – Oil & Gas (million €)
Oil & Gas – Sales (bar chart)Enlarge image
Sales by division
Oil & Gas – Sales by division (pie chart)Enlarge image
Factors influencing sales – Oil & Gas
 
Oil & Gas – Factors influencing sales (bar chart)Enlarge image
Income from operations – Oil & Gas
(million €)
Oil & Gas – Income from operations (bar chart)Enlarge image

Our planning for 2013 is based on an average oil price of $110 per barrel and a U.S. dollar exchange rate of $1.30 per euro. We strive to increase sales and earnings, primarily through higher production volumes.

Oil & Gas – Sales by region
(Location of customer)
Oil & Gas – Sales by region (pie chart)Enlarge image
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Segment data Oil & Gas 1 (million €)

 

 

2012

2011

Change in %

1

Supplementary information on the Oil & Gas segment

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

 

16,700

12,051

39

Thereof Exploration & Production

 

5,330

3,182

68

Natural Gas Trading

 

11,370

8,869

28

Intersegmental transfers

 

1,143

1,015

13

Sales including intersegmental transfers

 

17,843

13,066

37

Income from operations before depreciation and amortization (EBITDA)

4,721

2,616

80

Thereof Exploration & Production

 

4,057

2,042

99

Natural Gas Trading

 

664

574

16

EBITDA margin

%

28.3

21.7

Income from operations (EBIT) before special items

4,104

2,111

94

Thereof Exploration & Production

 

3,622

1,686

115

Natural Gas Trading

 

482

425

13

Income from operations (EBIT)

 

3,904

2,111

85

Thereof Exploration & Production

 

3,422

1,686

103

Natural Gas Trading

 

482

425

13

Income from operations (EBIT) after cost of capital 2

884

667

33

Assets

 

11,130

10,232

9

Thereof Exploration & Production

 

5,841

5,315

10

Natural Gas Trading

 

5,289

4,917

8

Exploration expenses

 

222

184

21

Additions to property, plant and equipment and intangible assets

1,206

1,274

(5)

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

1,880

439

328

Net income 3

1,201

1,064

13