Hungarian MOL H1 Profits Rise, Output Flat

Hungarian producer, refiner and gas transporter MOL reported August 3 first-half pre-tax earnings (Ebitda) of $1.3bn, prompting the company to raise its full-year target by almost a tenth, from around $2.2bn to $2.4bn. For the second quarter alone, pre-tax earnings (Ebitda) were up 7% on the same period last year, at $688mmn.

Upstream accounted for almost half, with Ebitda at $325mn for the quarter, up by 37% year-on-year, driven by rising oil and gas prices. In Q2, it gained 5,600 barrels of oil equivalent (boe)/day on the UK Catcher field coming on-stream and then ramping up (MOL 20%); receivables were also better. But it lost 4,500 boe/d in central Europe, mainly owing to lower onshore gas production. Upstream further boosted its free cash flow (FCF) by more than 50%, becoming the largest FCF contributor in the quarter with $261mn. At 109,300 boe/d, 2Q output was practically unchanged from last year's 109,400 boe/d.

Midstream gas Q2 Ebitda fell 16% year on year to $31mn as around flat revenues were coupled with rising energy costs thanks to higher gas prices, and as a 13% rise in transmission volume was offset by lower income from shippers. MOL wholly owns the Hungarian gas transmission network FGSZ. Excluding special items, operating profit fell 31% to $18mn; even the more intensive use of gas storage and higher demand for short-term products could not compensate for lower annual capacity bookings.