MOL Commits to Downstream

Hungary’s MOL Group reported a full year result for 2014 in line with 2013 levels, with downstream strengths almost offsetting weaknesses in the upstream and midstream segments. 

‘In 2014, MOL delivered a clean CCS EBITDA of HUF 510bn (USD 2.2bn) which is a mere 1% decrease compared to 2013’ reads a note released on Friday.

According to MOL, the Upstream business bore the brunt of lower oil prices, but beat expectations.

‘The Upstream business exceeded the forecasted production level at 98,000 boepd in 2014, above the original target of 91-96,000 and also surpassed the 100% organic reserve replacement ratio.’ 

The Upstream segment registered a 24% year-on-year decrease, but the Midstream did worse with a 37% plunge. 

On the other hand, the Downstream division reported comforting results. 

‘The Downstream division’s clean results of HUF 205.2bn (USD 870mn) are 31% ahead of similar figures of 2013.’ 

The company reported stronger results in the second half of the year, suggesting a renewed focus on this division and on a new project meant to increase efficiency and growth ‘leading to USD 500 million Downstream EBITDA improvement with very strong free cash flow generation over the coming years.’