Hungary mining: Prospex Oil invests in MOL owned firm

19. April 2016. / Mining

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The company’s downstream operations housing its refineries and petrochemicals.

Prospex Oil & Gas PLC Monday said it acquired a stake in the parent company of the integrated group of oil and gas companies, MOL Group.

The London-listed investment firm focused on the energy sector and wider natural resources industry has purchased 1,100 shares in MOL Hungarian Oil & Gas Public Ltd Co, the parent company of MOL Group.

Prospex paid a total of USD67,714 for the shares, implying it paid around USD61.56 for each share.

MOL Group is listed on Budapest, Luxembourg and Warsaw Stock Exchanges and the parent company that Prospex has invested in is headquartered in Hungary.

MOL Hungarian Oil & Gas reported net sales revenue of around GBP6.18 billion in 2014, leading to a pretax profit of around GBP311.0 million.

MOL’s upstream operations which produce oil and gas are based in eight different countries around the world, with further exploration happening in a further five countries. The group produced 98.0 million barrels of oil equivalent per day in 2014.

The company’s downstream operations housing its refineries and petrochemicals business is mainly based within central Europe.

Overall, MOL has assets worth around GBP8.24 billion under its belt.

“The investment is consistent with the company’s investment strategy being a minority position in a quoted company with the potential for growth and income. The directors believe investment increases the range of investments, by including a larger geographic area, and introduces a downstream element to the portfolio,” said Prospex.

The investment in MOL is the second investment to be made by Prospex since it became an investment company back in April 2015, following on from its GBP620,000 investment in Hutton Poland Ltd to acquire a 49% stake in the exploratory-stage company operating within Poland earlier this year.

Prospex shares were down 6.5% to 1.69 pence per share on Monday afternoon.

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