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Wintershall Dea IPO: Revenue, Competitors, Valuation & How to Invest

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Fact checked by
Franklin Silva
Updated
May 21, 2024

Whether for good or bad reasons, energy has been on top of the agenda for most people (including investors) based in Europe and around the world. Wintershall Dea is one company that’s been around for a long time and has been a key player in the oil and gas industry, especially within Europe. This German energy giant falls mainly under the control of BASF, but it looks like it may spin off to become a more independent entity in the near future. 

Throughout this article, we’re going to take a look at the most important details relating to this European energy stock so that you can decide whether you’d like to invest in Wintershall Dea. We’ll dive into all the key areas, such as the company statistics and financials, its profit, the current valuation, key competitors, and everything you need to know about the Wintershall Dea IPO (initial public offering).

What does Wintershall Dea do?

Wintershall Dea is an energy firm with roots reaching back over a hundred years. The company was created through a combination of ‘Wintershall’ and ‘DEA Deutsche Erdoel AG’, two pioneering companies of oil and gas in Germany.

Both companies were at the forefront of oil drilling and production throughout the 20th century. They were also crucial to the development of the natural gas industry in Germany and Europe. This eventually resulted in a partnership between Wintershall and Russia to set up a long-term agreement for marketing Russian natural gas in Germany with Gazprom. This relationship of pipeline projects and joint ventures ended due to Russia’s war in Ukraine. 

In 2019, Wintershall and DEA Deutsche Erdoel AG merged to become ‘Wintershall DEA’, one of Europe’s leading independent oil and gas companies, producing over 575,000 barrels of oil a day. Following the merger, BASF took a 67% stake in the business and Russian-controlled LetterOne owned the remaining 33%. As of May 2022, BASF now owns 72.7% of Wintershall DEA. The company was also a key part of financing the Nord Stream 2 project.

Wintershall Dea Key Company Facts

Founded 2019 (1894 Wintershall, 1899 DEA Deutsche Erdoel AG)
Headquarters Kassel, Germany
Sector Energy
Industry Oil and Gas
Founders Carl Julius Winter and Heinrich Grimberg (Wintershall), 
CEO Mario Mehren
Number of employees +2,200 (LinkedIn February 2024)
IPO Date 2024 (expected)
Valuation estimate €7.6 billion – €10.1 billion euros

Wintershall Dea Company Statistics

Below is a breakdown of some key information, including Wintershall Dea’s adjusted net income, EBITDAX, cash flow, production costs, and top energy competitors.

Wintershall Dea adjusted net income

This is basically the profit of Wintershall Dea. ‘Adjusted’ just means this is what the profit is plus non-cash expenses (like depreciation of fixed assets) minus non-cash gains. It tells you what the profit would be if someone else were to buy and take over the company.

Year Adjusted net income (EUR)
2020 €195 million
2021 €950 million
2022 €928 million

Source: Wintershall Dea

Wintershall Dea EBITDAX

EBITDAX stands for ‘earnings before interest, tax, depreciation, amortisation and exploration expenses’ and gives a snapshot of profitability and performance.

Year EBITDAX (EUR)
2019 €2.8 billion
2020 €1.6 billion
2021 €3.8 billion
2022 €5.9 billion

Source: Wintershall Dea

Wintershall Dea operating cash flow

This measures the cash being generated by Wintershall Dea’s business operations.

Year Operating cash flow (EUR)
2019 €1.9 billion
2020 €1.6 billion
2021 €3 billion
2022 €3.4 billion

Source: Wintershall Dea

Wintershall Dea operating free cash flow

This is the cash being generated minus capital expenditures.

Year Free cash flow (EUR)
2019 €190 million
2020 €159 million
2021 €2.1 billion
2022 €2.5 billion

Source: Wintershall Dea

Wintershall Dea production costs per BOE (barrel of oil equivalent)

The BOE/D (barrel of oil equivalent per day) cost is a standardised way for energy and oil-related companies to measure and compare costs.

Year Costs per BOE (EUR)
2019 €3.9
2020 €3.5
2021 €3.8
2022 €5.8

Source: Wintershall Dea

Wintershall Dea’s competitors

Although Wintershall Dea is one of the largest gas and oil companies in Europe, it faces global competition due to the universal application of these fuels. Some examples of competitors include:

  • BP
  • Shell
  • Total
  • Enbridge
  • Rice Energy
  • ExxonMobil
  • Chevron
  • Repsol
  • Galp
  • Rosneft
  • Lukoil
  • Eni
  • Gazprom

When is the Wintershall Dea IPO?

Chief Executive Mario Mehren stated that an IPO would not take place for at least 6 months, which was back in November 2022. There is no date set, and it could take place shortly, but there are some broader issues preventing the Wintershall Dea IPO. 

When the original merger between Wintershall and DEA Deutsche Erdoel AG took place in 2019, the idea was to proceed with a stock flotation on the public market in 2020. It was (and still is) most likely to be listed on the Frankfurt Stock Exchange.

However, Russia’s invasion of Ukraine was a big spanner in the works. Wintershall Dea had close ties with Russia. The business is partly owned by LetterOne, which is controlled by Pro-Putin Russian Oligarch Mikhail Fridman. On top of this, Wintershall Dea also helped fund the Nord Stream 2 pipeline and had an ongoing partnership with Russian energy company Gazprom. 

This has created a complex situation as Wintershall Dea attempts to distance itself from its Russian business ties. So, the Wintershall Dea IPO plans were put on hold. The current high energy prices and squeezed supply have enabled Wintershall Dea to perform well financially. It is dealing with some short-term losses due to pulling out of Russia, which it should be able to recover from. But nevertheless, the ongoing conflict involving Russia has made it challenging for the company to proceed with its initial public offering. 

The Wintershall Dea could take place soon if the legal, regulatory, and business issues can be ironed out. This was due to be one of the biggest IPOs to take place in Europe, so investors are sure to be eagerly waiting for some good news relating to this stock market flotation. BASF shareholders are keen for the Wintershall Dea IPO to occur sooner rather than later so that the chemical company can focus on its usual business.

How to invest and buy shares after the Wintershall Dea IPO

After the Wintershall Dea IPO date, you can freely buy the newly listed stock. Interactive Brokers and eToro are two top-rated brokers where you can access Wintershall Dea shares and buy the stock with low fees after the IPO. Take a look at both these brokerage options below:

1# Interactive Brokers

Interactive Brokers logo
Visit brokerRead review

Interactive Brokers at a glance

Minimum deposit€/$/£0
Products availableStocks, ETFs, Options, Futures, Forex, Commodities, Bonds and Funds
RegulatorsFINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS, MNB
Countries Supported210+ countries globally
Visit Interactive BrokersRead review

Founded in 1978, the IBKR platform lets you access over 150 market destinations in 33 countries and trade any asset you may be looking for: Stocks, Bonds, ETFs, Forex, Funds, Commodities, Options, Futures, CFDs, Cryptos Futures, and even tiny small companies (a.k.a micro caps).

If you want to buy Wintershall Dea stock after the IPO, here’s how you can buy shares using Interactive Brokers:

  1. Open a trading account with Interactive Brokers.
  2. Deposit funds into your account.
  3. Once it’s available, search for the Wintershall Dea stock, there is no confirmed ticker symbol right now.
  4. Place the type of order you wish to use (e.g. market, limit, stop etc.).
  5. Once you’ve bought your desired number of Wintershall Dea shares, continue to monitor performance.

If you’d like to learn more about the IBKR platform, check out our full-length Interactive Brokers review.

2# eToro

eToro logo
Visit brokerRead review

eToro at a glance

Minimum deposit$10 (varies between countries)
Products availableETFs, Stocks and CFDs on Commodities, Forex, and Cryptocurrencies
RegulatorsFCA, CySEC, ASIC
Countries Supported60+ countries globally
Visit eToroRead review

51% of retail CFD accounts lose money.

Founded in 2006 in Israel, eToro now has over 30 million customers worldwide. The platform is widely known for its social and copy trading features. It allows users to trade stocks, forex, commodities, cryptocurrencies, CFDs, and ETFs.

If you’re planning to buy Wintershall Dea stock after the IPO, here’s how you can buy shares using eToro:

  1. Open an account with eToro.
  2. Head to the ‘Markets’ page, and select ‘Stocks’.
  3. Search for the Wintershall Dea stock and select ‘Trade’.
  4. Next, hit ‘BUY’.
  5. Choose how much you want to invest in Wintershall Dea or the number of shares you want to buy.
  6. Select your leverage (or ensure that leverage is set to X1).
  7. Decide on a take-profit parameter if you want to automate a future sale of your Wintershall Dea stock.
  8. Finally, hit ‘Open Trade’.

If you’d like to learn more about eToro, check out our in-depth eToro review.

Bottom line on investing in the Wintershall Dea IPO

There have been plenty of delays since the initial plan for the Wintershall Dea IPO (initial public offering) to happen in 2020. For a time, it looked like the flotation would be postponed indefinitely due to Russia’s invasion of Ukraine. However, it now looks like BASF shareholders are keen for the IPO to move forward while energy prices are high and Wintershall Dea has mostly disentangled itself from Russia. 

Oil and gas companies aren’t trendy investments, but the recent conflict and energy crisis in Europe has shown that we still need these fuels for the time being as we transition to cleaner energy. This green transition won’t take place overnight. Because Wintershall Dea has already had a significant interruption to its business, it’s forced the company to research sustainable long-term strategies for providing energy to Europe.

When the Wintershall Dea IPO takes place, it’s likely to be a big deal for investors and the European stock markets. The firm is still struggling with costs relating to its withdrawal from Russia, but long-term prospects look good in terms of the company’s finances. This is an IPO that could take place any moment now, and I’m sure investors across Europe and the rest of the world will be excited about picking up shares in Wintershall Dea after its IPO. 

FAQs

What is an IPO?

The acronym stands for ‘Initial Public Offering’, it’s a process used by large private companies to raise additional capital. This is done to further invest in the growth of the business or even pay off debt. An IPO creates public awareness, putting the company under the spotlight. Timing of an IPO is crucial for a company if it wants to maximise its capital-raising potential and increase its valuation due to demand from investors and the market.

Does BASF still own Wintershall Dea?

Yes, BASF owns a majority stake in Wintershall Dea (73%).

Who owns Wintershall Dea?

Ownership is split between BASF (73%) and LetterOne (27%).

Is Wintershall Dea public or private?

Right now, it’s private.

Did BASF shareholders say Russia exit sets up oil and gas IPO?

Yes, reports say that leaving Russia has cleared the way for the Wintershall Dea IPO to go ahead. 

Where is Wintershall Dea located?

The company has headquarters in Kassel and Hamburg (Germany).

Is Wintershall Dea going to IPO?

Yes, it sounds very likely, but the main question is when. The company is in the process of going ahead with a listing on the Frankfurt Stock Exchange now that it’s mostly pulled out of Russia.

Is Wintershall Dea publicly traded?

Not right now. Wintershall Dea is still a private company. But after the Wintershall Dea IPO, it will become a listed company, and shares will be publicly traded on a stock exchange.

What is the Wintershall Dea current valuation?

Back in 2020, estimates for the Wintershall Dea value was between €15 billion and €20 billion euros. However, a more recent estimate from Markus Mayer, an analyst at brokerage Baader Helvea, puts the Wintershall Dea total valuation at between €7.6 billion and €10.1 billion euros.

What is the stock ticker for Wintershall Dea?

There’s no confirmed stock ticker for Wintershall Dea right now because it’s still part of BASF.

Is Wintershall Dea profitable?

By some measurements, yes. However, the company posted a group net loss of €4.8 billion euros in 2022, but this included €7 billion euros worth of one-off, non-cash losses related to pulling out of Russia. 

Can you invest in Wintershall Dea now?

Not at the moment. After the company is listed on a stock exchange after its IPO, you will be able to buy Wintershall Dea stock (providing your stock broker lets you access the Frankfurt Stock Exchange). 

What is the IPO price for Wintershall Dea?

This won’t be known until very close to the initial public offering, when the underwriters and investment banks agree on a price.

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About the author
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George Sweeney, DipFA
Contributor

George is a freelance writer and qualified financial advisor who focuses on educating others in personal finance and investing. He has experience working in investing, insurance, and a number of other industries.

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