Hungarian oil and gas company MOL significantly outperformed its initial target for 2016 of 2 billion dollars and delivered a clean CCS EBITDA in the amount of 2.15 million dollars, which is only moderately lower compared to the previous year.
Upstream segment has shown great resilience to the deteriorating external environment as a 17 % decline in crude oil and 23 % decline in natural gas prices were offset by higher production and cost discipline. The segment’s EBITDA remained at 675 million dollars and it generated over 250 million dollars free cash flow equaling 7 dollars per barrel of oil equivalent. Production increased by 6 % in 2106 and reached 112,000 barrels of oil equivalent per day.
At the same time, Downstream segment posted a clean CCS EBITDA in the amount of 1.5 billion dollars in the past year, which is slightly below the all time high level recorded in 2015. This decline was caused by the expected normalization of the refining and petrochemical margins. Retail segment EBITDA increased by 40 %, due to acquisition of nearly 450 petrol stations in five CEE countries.
In its guidance for 2017, MOL put EBITDA at at least 2 billion dollars with the expected upstream production of around 110,000 barrels of oil equivalent per day.