Business review

Oil & Gas

At €12,998 million, the Oil & Gas segment’s sales to third parties were €2,147 million lower than in 2014 (volumes 15%, prices/currencies –9%, portfolio –20%). This was largely a result of the asset swap with Gazprom completed at the end of September, which meant that contributions from the natural gas trading and storage business, as well as from Wintershall Noordzee B.V., ceased starting in the fourth quarter of 2015. The significant drop in the price of oil led to slightly lower sales in the Exploration & Production business sector. However, sales were positively impacted by a volumes increase in both the Exploration & Production and Natural Gas Trading business sectors. The drop in sales meant a decline in income from operations before special items by €429 million to €1,366 million. Special charges totaled €636 million in 2015; these arose predominantly from impairments on exploration and production projects and on goodwill as a result of our reduced oil and gas price assumptions. Special income of €342 million, particularly from the asset swap with Gazprom, was only partly able to compensate for this. Income from operations therefore decreased by €616 million to €1,072 million. Net income declined by €414 million to €1,050 million.

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

Our planning for the 2016 business year is based on an average oil price of Brent crude of $40 per barrel and an exchange rate of $1.10 per euro. On average, gas prices are likely to hover considerably below the level of 2015. We expect to expand production; however, sales and income from operations before special items are likely to see a considerable decline compared with 2015, largely on account of the significant drop in oil and gas prices as well as the divestiture of the gas trading and storage business. Furthermore, we will generate lower sales and earnings from our share in the Yuzhno Russkoye natural gas field, as the surplus quantities produced over the last ten years will be compensated in 2016 as contractually agreed with our partner Gazprom.