Higher gas prices: NAM makes a profit of 2.4 billion euros

The Nederlandse Aardolie Maatschappij (NAM) made a profit of 2.4 billion euros last year. That is more than 2 billion more than the 390 million euros profit of 2021. That profit was made, despite the fact that NAM produced less gas.

“This profit was caused by a combination of the downsizing of the company in recent years and the high gas prices,” NAM director Johan Attema explains the profit increase of 2 billion euros.

The company calls this profit ‘exceptional’ and expects to make less profit this year. This is because gas prices have so far been ‘considerably lower’, the NAM reports.

All in all, NAM, with its head office in Assen, produced 8.4 billion cubic meters of gas last year. Two years ago, this involved 11 billion cubic meters of gas. Less gas was obtained, especially from Groningen.

Oil did not come from the Drenthe soil. “The oil production of Schoonebeek has been at a standstill for the whole of 2022,” says Atema. The NAM wants to inject wastewater at Schoonebeek. This happened in Twente until the end of 2021. The NAM does not yet have the permit to carry out this process in Schoonebeek. Until then, oil production has come to a standstill.

Atema: “We take the time to discuss their concerns with stakeholders in this region, in particular about the injection of water released during oil production into the gas field under Schoonebeek. We are also working with the government and the region on a model that allows residents to benefit from the benefits of oil extraction, which is expected to be completed this year.”

NAM’s income increased by more than 6.5 billion euros last year, to 9.7 billion euros. This is mainly due to the sale of gas and the increased gas prices. Last year that brought in 5.4 billion euros, compared to 2.2 billion two years ago.

There is also a significant increase in the compensation for adjusting the gas storage at Norg. The government must compensate NAM for this. Gas from Groningen was stored in Norg, but the storage is now used for the storage of other gas. As a result, gas extraction in Groningen can stop earlier. The state reimburses the extra costs that NAM incurs for this. Last year that was 5.4 billion euros, just under three billion more than in 2021.

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