Deutsche Rohstoff - Solid H1 results, strong cash flow generation

Strong production and oil prices led to Deutsche Rohstoff’s (DRAG’s) solid results in H121 with EBITDA up 150% to c €40m (c €16m in H120) and net cash flow generation of c €17m. Management, which is typically conservative, has increased earnings guidance for 2021 and 2022. An extensive $60m drilling programme, comprising 12 wells at Cub Creek’s Knight pad and one well at Bright Rock’s new acreage in Wyoming, is due for completion by end-Q3 with production commencing in Q4.