Hungary: MOL 3rdQ sales revenue drop, profit increase, SEE Energy News
Net revenues from sales of Hungarian MOL Group amounted 5.7 billion dollars in the third quarter, which is 10 percent lower than a year earlier, while net CCS EBITDA reached 696 million dollars, 13 percent more than in the same period last year.
In comparison, however, to the previous quarter, pure CCS EBITDA grew by 72 percent in the third quarter, said the Hungarian company on Thursday. Strong increase in profit is primarily the result of significant improvements in the oil refining.
In the downstream segment it was achieved a record pure EBITDA of 345 million dollars, which is three times higher than in the second quarter.
As stand out from the MOL, it is a clear signal of successfully implemented measures for efficiency improving and on the other hand for the macro environment. The seasonal increase in sales volume and enhanced margins also improved the performance of the retail and petrochemical business.
“This was a strong quarter for MOL with a lot of good news. As we predicted, upstream segment again achieved growth, and we see significant potential for its growth in the coming quarters”, said Chairman of the Board and Executive Director of MOL, Zsolt Hernadi in the commentary of the achieved results.
Total MOL’s oil production rose in the third quarter to 5 percent, mainly due to the production of the fields in Kurdistan.
The total production of gas and condensate production also rose, by 2 percent. Among other things, the gas production from the Croatian offshore also increased, but these positive effects are modest due to planned maintenance activities on gas production on the Croatian mainland states, writes in the statement among other thing.
Hernadi expressed satisfaction that the MOL achieved one of its best quarterly results in the downstream segment.
“During the quarter, we announced the expansion of our coverage of the region of Central and Eastern Europe by Lukoil’s purchase of the network in the Czech Republic. We are continuing with further organic and inorganic development projects in order to lay the foundations for the value creation in the future”, said Hernadi.
He pointed out that the MOL signed an agreement on revolving credit line of about $ 1.5 billion dollars, which is lengthened maturities of loans and increased financial flexibility of the company in order to achieve its development strategy.
In the first nine months, MOL Group achieved net sales of 16.21 billion dollars, which is less by 10 percent compared to the same period last year, while the clean EBITDA fell by 9 percent to 1.589 billion dollars.
Price of MOL share rose 1.7 percent, to 11,840 forints this morning at the Budapest Stock Exchange.
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