Business review Sales improve by 17% to €3,244 million due to higher prices and volumes 53% increase in EBIT before special items to €793 million mainly from higher prices In the Oil & Gas segment, sales to third parties increased by €476 million year-on-year to €3,244 million as a result of higher prices and volumes. The price of a barrel of Brent crude oil averaged $54 in 2017 (previous year: $44). Gas prices on European spot markets rose by 24% compared with the previous year. Volumes growth was mainly driven by higher gas sales volumes. Production volumes matched the prior-year level. Oil & Gas – Factors influencing sales Oil & Gas – Sales by region (Location of customer) Income from operations (EBIT) before special items grew by €276 million to €793 million in 2017. This is primarily attributable to the increase in oil and gas prices as well as the higher earnings contribution from our share in the Yuzhno Russkoye natural gas field. Comprehensive measures aimed at optimizing exploration and technology projects as well as the successful implementation of operational cost-saving measures also had a positive effect. EBIT rose by €544 million to €1,043 million. This included special income from the reversal of impairments in Norway and the Netherlands as well as from the sale of shares in the Aguada Pichana concession in Argentina. This was partially offset by an impairment on exploration potential in Norway. Net income increased by €357 million to €719 million. Click here for the Outlook for 2018 At 164 million barrels of oil equivalent (BOE), our oil and gas production was on a level with the previous year. In the search for new oil and gas reservoirs, we completed a total of seven exploration and appraisal wells in 2017, of which three were successful. Our proven oil and gas reserves rose by 3% compared with the end of 2016, to 1,677 million BOE. We replenished 133% of the volumes produced in 2017. The reserves-to-production ratio is around 10 years (2016: 10 years). This is based on Wintershall’s production in 2017 and the reserves at year-end. (XLS:) Download Segment data1 (million €) 2017 2016 Change in % 1 Supplementary information on the Oil & Gas segment 2 Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments) 3 Additions to intangible assets and property, plant and equipment 4 More on this figure can be found in the reconciliation reporting for Oil & Gas in the Notes to the Consolidated Financial Statements. Sales to third parties 3,244 2,768 17 Intersegmental transfers 409 331 24 Sales including intersegmental transfers 3,653 3,099 18 Income from operations before depreciation and amortization (EBITDA) 2,069 1,596 30 EBITDA margin % 63.8 57.7 – Depreciation and amortization2 1,026 1,097 (6) Income from operations (EBIT) 1,043 499 109 Special items 250 (18) . EBIT before special items 793 517 53 EBIT after cost of capital (175) (744) 76 Assets 11,967 12,829 (7) Investments including acquisitions3 988 1,115 (11) Research and development expenses 46 39 18 Exploration expenses 104 94 11 Net income4 719 362 99 back next