Hungary, MOL recorded strongest quarterly result ever in Q2 2021, SEE Energy News
In the first six months of 2021, MOL Group delivered EBITDA of 1.559 billion dollars, while in Q2 Clean CCS EBITDA jumped by 153 % year-on-year to an all-time high 893 million dollars, driven by stronger oil macro, record high petrochemical margins and the easing of Covid-related restrictions with a subsequent positive effect on sales volumes. Strong Q2 EBITDA allows MOL Group to raise its 2021 full year guidance to around 3 billion from around 2.3 billion dollars.
Downstream Q2 Clean CCS EBITDA increased by 305 % year-on-year to 447 million dollars, boosted by very strong petrochemical performance while refining margins gradually recovered from the lows of Q2 2020. In H1 2021,
Downstream generated 73 % better result than in the same period last year. The strong Downstream result was primarily driven by outstanding performance in petrochemicals, which saw its integrated petchem margin reaching an all-time high of 1,035.8 euros/ton during April. Downstream became the largest cash contributor to the Group in Q2 with 307 million dollars free cash-flow generation As for the ongoing investments, the polyol project exceeded 84 % overall completion at the end of Q2.
Upstream EBITDA jumped to 336 million dollars in Q2, amounted exactly three times higher than a year ago and H1 result came in at 645 million dollars that means a 117 % increase since the same period last year, driven by the continuously higher oil and gas prices. Oil and gas production volume decreased slightly by 5 % compared to Q1
2021 to 111.2 mboepd, due to the maintenance in UK, natural decline in the UK and CEE and lower ACG net entitlement production affected by the higher oil prices. Upstream is still one of the largest cash contributors of the Group, as simplified free cash flow rose year-on-year, as well as quarter-on-quarter to 230 million dollars in Q2.
Consumer Services reached an all-time high Q2 EBITDA in Q2 2021, increasing by 48 % year-on-year to 164 million dollars. The excellent performance resulted in strong free cash-flow, generating 230 million dollars in the first half of
the year, 50 % more than a year ago. The easing of pandemic-related lockdowns and restrictions in MOL’s core CEE countries had a positive effect on sales volumes and non-fuel margin. Non-fuel margin increased by 34 % in Q2, driven by strong performance across a broad category range in the Hungarian, Romanian, Czech and Slovakian markets. Total sales volumes increased by 25 % year-on-year in Q2 as a result of increased travel activity following easing of restrictions. In Q2 2021, MOL together with its subsidiary INA, agreed to acquire OMV Slovenia, including 120 service stations and the wholesale operation.
Gas Midstream Q2EBITDA fell by 48 % to 23 million dollars compared to the same period last year, as both transit revenues and regulated income fell as a result of materially decreased crossborder capacity and transmission demand. Domestic transmission volumes increased by 32 % in Q2 year-on-year, while export transmission
volumes (to Ukraine, Romania, Croatia and Slovakia) decreased significantly by almost 87 %.