MOL Beats Expectations in Third Quarter

Lower-than-expected losses in the third quarter ensures Hungary’s MOL a “wide room for potential inorganic steps,” said Chairman-CEO Zsolt Hernádi.

Despite the difficult business environment due to worsening refining margins and the dispute with Croatia about INA Industrija Nafte, the company beat the expectations in different business segments. 

‘Upstream in the third quarter benefitted from higher than average realized hydrocarbon prices, following second quarter’s weaker results. Downstream segment improved its performance reaching one of the best quarterly result of the last three years… The improvement in Gas Midstream’s performance is mainly attributable to seasonal patterns which manifested lower losses in the Croatian gas trading business,’ reads a note released on Friday.

At the same time, the financial results well demonstrate the difficult business environment in which the company operates.

The EBITDA (excluding special items) for the first nine months was HUF 386.7 billion, registering a 15% year-to-year decrease. The profit from operation (excluding special items) decreased 41% to HUF 139.8 billion. Net profit for the first nine months of the year reached HUF 16.7 billion, from the HUF 142.0 billion registered in the same period of last year. 

“We are focusing on a more active portfolio management approach, especially in Upstream, to create near-term growth potential,” MOL Chairman-CEO Zsolt Hernádi commented.