Mol Profits Down, Midstream Gas Buoyant

Hungarian producer and refiner Mol said May 4 that its 1Q2018 net profit was $238mn, down 26% from its year-ago figure of $323mn.

Pre-tax earnings (Ebitda) on a current cost of supply (CCS) basis were 2% higher at $625mn. Mol judges these to reflect its underlying business performance; its full year target is $2.2bn.

Upstream Ebitda was 31% higher at $287mn thanks to rising oil price, higher production and lower costs, with production reaching 110,000 barrels of oil equivalent per day as the UK North Sea Catcher oil field came on stream and production at other UK fields normalised. Production in 1Q2017 was 107,000 boe/d. Mol’s target for full year 2018 is about 110,000 boe/d.

Mol's production in eastern Europe was generally lower due to natural field declines, but it completed 11 well workovers in Hungary during 1Q2018 that achieved a 0.6mn boe/d “instant production uplift”, adding that a fracking campaign is being prepared there too for seven wells.

Downstream earnings on the same basis fell by 33% to $218mn on weaker margins and because of refinery maintenance.

In contrast, Mol’s Gas Midstream segment earnings – chiefly from its Hungarian gas grid subsidiary FGSZ - grew by 21% to $85mn thanks to higher transit volumes and lower costs.