Germany’s Wintershall Dea has increased production in the third quarter while cutting costs amid a “challenging commodity price environment”.

The company reported on Wednesday a 6% boost to output to 613,000 barrels of oil equivalent per day in the three-month period compared to 578,000 boepd in the same period last year.

Wintershall Dea revised its full-year production guidance 640,000 boepd ahead of previous guidance of 635,000 boepd.

During the quarter, production costs fell 21% to $3.8 per barrel of oil equivalent due to higher production from low cost fields and further cost efficiencies, the company said.

Earnings before interest, taxes, depreciation, amortization and exploration expense (Ebitdax) in the quarter hit €708 million ($779 million) compared to €957 million year-on-year.

The drop was due to the significantly weaker commodity price environment, with Brent down 20%, and European gas down 60% respectively.

Capital expenditures in the third quarter were €400 million, with full-year guidance revised down by €100 million to €1.6 billion, the company said.

Mario Mehren, Wintershall Dea chief executive said: “Wintershall Dea made good progress during our first full quarter since the merger. In the face of a challenging commodity price environment Wintershall Dea has worked hard to maximise value from every barrel we produce”.

Updated to reflect Wintershall Dea's production for the third quarter was 613,000 barrels of oil equivalent per day and not 613 million boepd.

Production

Wintershall Dea boosts output, cuts capex