Business review

  • Sales grow considerably, especially as a result of increased volumes in both business sectors
  • Income from operations before special items improves slightly through higher contribution from Exploration & Production
  • Net income considerably above previous year’s level
  • Current reserves increase from 9 to 11 years

Oil & Gas

Sales – Oil & Gas (million €)
Oil & Gas – Sales (bar chart)Enlarge image

Sales to third parties in the Oil & Gas segment grew by €2,036 million to €14,776 million in 2013. This was primarily the result of increased volumes in both business sectors (volumes 14%, prices/currencies –1%, portfolio 3%). At €1,969 million, income from operations before special items exceeded the previous year’s level by €93 million thanks to the higher contribution from the Exploration & Production business sector. Various special items led to an increase of €840 million in income from operations, for a total of €2,516 million. Net income improved by €579 million to €1,780 million.

Our planning for 2014 is based on an average oil price of $110 per barrel and a U.S. dollar exchange rate of $1.30 per euro. We expect sales considerably below the 2013 level as a result of the divestiture of the gas trading and storage business planned for the middle of 2014. We anticipate a slight increase in income from operations before special items, driven by the first all-year inclusion of the Norwegian activities acquired from Statoil and the further expansion of Achimgaz production. We also expect to be able to resume onshore production in Libya. The asset swap planned with Gazprom will negatively affect income from operations before special items in 2014 as a result of the missing contributions from the current businesses to be disposed of.

Sales by division
 
Oil & Gas – Sales by division (pie chart)Enlarge image
Oil & Gas – Sales by region (Location of customer)
Oil & Gas – Sales by region (pie chart)Enlarge image
Factors influencing sales – Oil & Gas
 
Oil & Gas – Factors influencing sales (bar chart)Enlarge image
Income from operations before special items – Oil & Gas (million €)
Oil & Gas – Income from operations (bar chart)Enlarge image
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Segment data Oil & Gas1 (million €)

 

 

2013

2012

Change in %

1

Supplementary information on the Oil & Gas segment.

2

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

 

14,776

12,740

16

Thereof Exploration & Production

 

2,929

2,584

13

Natural Gas Trading

 

11,847

10,156

17

Intersegmental transfers

 

1,160

1,104

5

Sales including intersegmental transfers

 

15,936

13,844

15

Income from operations before depreciation and amortization (EBITDA)

3,144

2,445

29

Thereof Exploration & Production

 

2,133

1,775

20

Natural Gas Trading

 

1,011

670

51

EBITDA margin

%

21.3

19.2

Income from operations (EBIT) before special items

 

1,969

1,876

5

Thereof Exploration & Production

 

1,540

1,387

11

Natural Gas Trading

 

429

489

(12)

Income from operations (EBIT)

 

2,516

1,676

50

Thereof Exploration & Production

 

1,659

1,187

40

Natural Gas Trading

 

857

489

75

Income from operations (EBIT) after cost of capital

 

1,283

530

142

Assets

 

11,916

11,252

6

Thereof Exploration & Production

 

7,731

5,766

34

Natural Gas Trading

 

4,185

5,486

(24)

Research and development expenses

 

53

32

66

Exploration expenses

 

187

221

(15)

Additions to property, plant and equipment and intangible assets

 

2,954

1,172

152

Net income2

 

1,780

1,201

48