Hungary, MOL continues with good financial results in Q3 2021

, SEE Energy News

Supported by the macro-economic environment, the doubling petrochemicals margins compared to last year and the internal performance of the company, Clean CCS EBITDA strongly rebounded and came in at 1.025 billion dollars in Q3 2021.

This result brought Q1-Q3 2021 EBITDA to 2.583 billion dollars that allows MOL to further upgrade full year guidance to reach or even exceed 3.2 billion dollars. Organic capital expenditure was 18 % higher year-on-year in Q3 2021, reaching 360 million dollars of which 68 million was spent on transformational projects including the Polyol plant construction. Meanwhile, world market perturbances, soaring commodity prices, logistics difficulties and the 4th wave of Covid-19 pandemic create an overall relatively unpredictable operational environment.

MOL CEO Zsolt Hernadi said that the good results of the third quarter have been supported by the favorable external environment and the rebounding regional economic growth. Very strong year-to-date 2021 delivery allows the company to further upgrade its annual EBITDA guidance, which is expected to reach or even exceed 3.2 billion dollars. As a result, MOL remains focused to maintain financial and operational resilience and deliver on its longer-term sustainability related commitments. A higher year-to-date free cash flow generation allows the company to fund our sizeable upcoming transformational investments within the framework of its 2030+ strategy.

Upstream became the largest free cash-flow contributor of the Group in Q3 2021 as EBITDA jumped by 87 % year-on-year to 396 million dollars and it was 18 % higher even in comparison with the strong previous quarter, supported by the macro-economic environment. Production volumes slightly decreased and resulted in 107.4 million barrels of oil equivalent per day, due to higher crude oil prices reducing net entitlement production in the ACG asset in Azerbaijan and due to the natural decline in Central and Eastern Europe.

Downstream Clean CCS EBITDA increased by 116 % to 436 million dollars compared to the same period last year, supported by stronger petrochemicals and refining contribution, rebounding from the 2020 lows. Sales volumes grew by 7 % year-on-year in Q3 due to stronger regional fuel demand. Integrated petchem margin doubled in Q3 year-on-year, however declined from the record high levels of Q2, due to rising oil- and lower polymer product prices. The polyol plant construction project progressed well and exceeded 89% overall completion at the end of Q3 2021.

Consumer Services Q3 2021 EBITDA reached 211 million dollars supported by recovering regional sales volumes and non-fuel contribution. The increase was backed by the strong economic recovery in core markets. Motor fuel demand surpassed Q3 2019 consumption levels in Hungary, Slovakia and in Croatia. The number of transactions increased by 12 % year-on-year, as in the same quarter last year customer’s behavior was more influenced by the pandemic situation. The number of Fresh Corner sites rose to 1,028 in Q3 from 1,008 in the previous quarter.

Gas Midstream EBITDA decreased by 30 % year- on-year in Q3 to 30 million dollars, as both transit revenues and regulated income fell as a result of decreased cross-border capacity and transmission demand. Both domestic transmission volumes and export transmission volumes further declined by 26 % in Q3 compared to the same period in 2020. Capital expenditures increased due to the Serbian- Hungarian interconnector project.