MOL Numbers Hold Firm in Q3

Earnings at Hungary's MOL were relatively strong in the third quarter, according to results published on November 6, as strong downstream performance and higher oil production compensated for low oil and gas prices.

The company's clean current cost of supply (CCS) Ebitda came to $610mn in the three months ending September 30, down from $689mn a year earlier and up from $353mn in Q2 2020. Its net profit came to $185mn, versus $204mn in Q3 2019 and a loss of $142mn in Q2 2020.

MOL's upstream Ebitda, excluding special items, came to $211.7mn from $235.2mn a year earlier, as its average price for liquids fell to $40.6/barrel from $58.4, and its average gas price to $16.2/barrel of oil equivalent from $24.3. Oil production surged to 70,800 boe/d from 46,200 boe/d, largely due to Mol's acquisition of a 9.6% stake in the giant Azeri-Chirag-Gunashli fields in Azerbaijan, completed in April.

The growth in crude more than offset a drop in gas output to 41,600 from 46,400 boe/d.

Downstream, Ebitda excluding special items rose to $245mn from $229.2mn, as production saw modest growth, making up for weaker margins.

"Earnings strongly rebounded in the third quarter from the Q2 lows, which will in all probability allow us to deliver full-year 2020 Ebitda at the higher end of our guidance range, around $1.9bn," Mol CEO Zsolt Hernadi said in a statement. "All business segments generated positive free cash flow so far this year despite the pandemic, clear evidence of the robustness and resilience of our operations."