Wintershall Dea, Germany's biggest upstream oil and gas player, expects deferrals of some projects and a possible delay of its initial public offering this year, as the coronavirus pandemic squeezes the energy sector, its chief executive said.
"When it comes to development projects and that's a mixed bag, some are progressing as planned, while others see deferrals because of a lack of materials that are needed," Mario Mehren told The National in an interview.
The company, a subsidiary of the world's largest chemicals company, BASF is "IPO ready" but the planned listing of as much as 30 per cent of the company this year remains uncertain, he said.
"I would assume given the situation we are currently in, in terms of depressed equity markets and also extremely low oil and gas prices, it is difficult to imagine an IPO this year but you never know what's going to happen," Mr Mehren said.
The German company, which merged with DEA, owned by Russia's LetterOne in May 2019 had initially targetted a listing by the second half of the year, possibly in Frankfurt.
Wintershall Dea, which operates a clutch of concessions in places such as Egypt, Russia, Norway, Mexico, the UAE, and Libya is revising its upstream production portfolio in line with global demand for crude.
Crude prices have dropped as much as 80 per cent from their most recent peak in January, while demand has plunged following worldwide lockdowns and social distancing measures to contain the coronavirus outbreak.
Wintershall is considering adjusting its current production target of between 600,000 and 630,000 barrels of oil equivalent per day for 2020.
"It's too early to say now whether this will change or not," said Mr Mehren. The German company will disclose its first-quarter earnings on May 20.
Oil and gas majors in Europe have faced a challenging first quarter as demand for crude crumbled globally. Wintershall Dea was one of the earliest to revise its capital expenditure for 2020, reducing spending by 10 per cent to between €1.2 billion (Dh4.8bn) and €1.5bn.
Wintershall Dea, which had initially targetted raising its global output to 750,000 boepd by 2023 is preparing to revise its targets, keeping some projects on hold.
"For the time being I would not say that it would be 2023 exactly but the growth path that we're on is absolutely ok and the projects in Norway etc are all in the execution phase so time will tell," Mr Mehren said.
Production across its various concessions currently averages 617,000 boepd and has been "stable" so far, he added.
The company is concerned, however, about the situation in Libya, where a force majeure in early January halted export of all production from onshore oil fields.
Output from the North African country has subsequently dwindled to 80,000 barrels per day, with the National Oil Company stating that losses have amounted to $4bn (Dh14.7bn).
Wintershall Dea, which operates across nine oil fields in Libya says production onshore has completely ceased. Its onshore stake in the Al Jurf field is minor and has little impact on the company's overall production figures, Mr Mehren said.
"We are more concerned about the situation in Libya because of our more than 500 employees that we have there and that are obviously facing a severe crisis in terms of economic impact, production impact," he added.
He dismissed the possibility of an exit from the country noting that Wintershall Dea will continue to produce if allowed to do so.
The company, which commemorates one year of its merger with Russia's DEA, will lay off around 1,000 employees across the organisation as part of the integration process. However, there are no additional layoffs related to the pandemic, Mr Mehren said.
The energy company will not seek any aid from the German government, which has sanctioned €750bn to prevent bankruptcies or foreign takeovers in the wake of the pandemic.
Wintershall Dea doesn't plan to tap debt markets this year as it's well-financed, Mr Mehren said.
"We have sufficient working capital lines so, for the time being, I don't feel the need to do any additional refinancing or additional finance," said Mr Mehren.
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A list of the animal rescue organisations in the UAE
The biog
First Job: Abu Dhabi Department of Petroleum in 1974
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work
Company%20profile
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
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Price: From Dh117,059
Brief scores
Day 1
Toss England, chose to bat
England, 1st innings 357-5 (87 overs): Root 184 not out, Moeen 61 not out, Stokes 56; Philander 3-46
Awar Qalb
Director: Jamal Salem
Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman
Two stars
Expert advice
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
Monster
Directed by: Anthony Mandler
Starring: Kelvin Harrison Jr., John David Washington
3/5
THE BIO:
Favourite holiday destination: Thailand. I go every year and I’m obsessed with the fitness camps there.
Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.
Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.
Personal motto: Believe it and you can achieve it.
SHAITTAN
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Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
Mubadala World Tennis Championship 2018 schedule
Thursday December 27
Men's quarter-finals
Kevin Anderson v Hyeon Chung 4pm
Dominic Thiem v Karen Khachanov 6pm
Women's exhibition
Serena Williams v Venus Williams 8pm
Friday December 28
5th place play-off 3pm
Men's semi-finals
Rafael Nadal v Anderson/Chung 5pm
Novak Djokovic v Thiem/Khachanov 7pm
Saturday December 29
3rd place play-off 5pm
Men's final 7pm
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
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The specs
Engine: 2.0-litre 4-cyl, 48V hybrid
Transmission: eight-speed automatic
Power: 325bhp
Torque: 450Nm
Price: Dh359,000
On sale: now
MATCH INFO
Chelsea 1 (Hudson-Odoi 90 1')
Manchester City 3 (Gundogan 18', Foden 21', De Bruyne 34')
Man of the match: Ilkay Gundogan (Man City)
