General – Wintershall Dea
In a special media call, Wintershall Dea CEO Mario Mehren has described the Russian war of aggression against Ukraine as a ‘fundamental turning point for Wintershall Dea.’
Days into the war, Wintershall Dea announced the impairment of Nord Stream 2 financing, stopped payments into Russia and said a clear ‘no’ to new projects in Russia.
The company plans to strengthen its portfolio outside Russia, including considering new country entries. It will also step-up planned investments in carbon management and hydrogen.
The war is a ‘fundamental turning point’, for geopolitics, and for Wintershall Dea itself, said Mehren. “There can be no ‘business as usual’ with Russia now. There will not be. There is no doubt about that.”
Wintershall Dea took a 1.5 billion euro impairment on its Russia related assets in Q1, leading to a net loss of 1 billion euros in the quarter.
However, the company’s underlying financial performance remains robust and – driven by the external environment and strong production – resulted in high cash flow generation. Furthermore, the company’s leverage is its lowest ever and underpins our strong balance sheet.
Mehren addressed demands for an energy embargo and an immediate stop to all existing projects in Russia. “I can well understand calls for an immediate import ban on Russian gas. But I also understand the complex dilemma the German government faces. It bears great responsibility for Germany, for its competitiveness, prosperity, and social stability.” Gas imports from Russia “might be substituted. But not quickly”, he added.
After intensive discussion, Wintershall Dea has decided to maintain its participation in existing projects in Russia. In the event of a withdrawal, billions in assets would fall to the Russian state.
There is “a lot of uncertainty ahead” for the energy sector. But two strategic themes for Wintershall Dea are clear: portfolio strengthening and energy transition.
The company will strengthen its portfolio: “To diversify European energy supply sources, and to improve the resilience of our business even further.”
Wintershall Dea is ‘looking at all options for additional gas volumes and additional energy supply.’
That includes through delivery of the Nova, Njord and Dvalin major projects in Norway.
Wintershall Dea is also looking at opportunities around the globe: in countries where the company is already active, and potential new country entries.
