Hungarian oil and gas group MOL booked net income of HUF 54 billion in the second quarter, lifted by growing output of its upstream segment and higher crude prices from a HUF 43.2 billion loss in the same period a year earlier, when the bottom line was hit by a big financial loss, MOL said in its consolidated IFRS report published Tuesday.

Analysts polled by Portfolio.hu had put net income at HUF 46.5 billion for Q2.

Total income was down 53% at HUF 36.6 billion.

Basic earnings per share were HUF 618 in Q2. Diluted EPS came to HUF 420.

Total operating revenue rose 23% to HUF 1,308.9 billion. The cost of Ural Blend climbed 48% to USD 113.7 per barrel during the period.

Cost of raw materials and consumables used increased 34% to HUF 1,023.4 billion. But total operating expenses rose just 21% to HUF 1,230.4 billion, at a slower pace than revenue, lifting operating profit by 70% to HUF 78.4 billion.

MOL booked a HUF 10.3 billion financial loss in Q2, well under the HUF 77.5 billion loss in the base period.

In a breakdown by business, MOL said net sales revenue of its upstream segment rose 13% to HUF 199.2 billion. Operating profit of the segment more than doubled from HUF 35.9 billion to HUF 73.8 billion.

Revenue of the downstream segment increased 19% to HUF 1,197.8 billion. But operating profit fell 60% to HUF 5.4 billion.

Revenue of the midstream gas segment was down 81% at HUF 34.5 billion. Operating profit fell 16% to HUF 14.5 billion.

MOL’s first-half profit was also supported by higher output of the upstream segment and a narrowing margin. Net income came to HUF 146.6 billion in H1, compared to a loss of HUF 24.2 billion in the base period, when a big financial loss ate up profit.

Revenue rose 29% to HUF 2,510.6 billion. Cost of raw material and consumables was up 36% at HUF 2,012.0 billion, but total operating expenses climbed just 25% to HUF 2,323.0 billion, raising operating profit 99% to HUF 187.6 billion.

MOL booked a HUF 18.4 billion financial gain in H1, compared to a HUF 101.3 billion loss in the base period.

MOL had total assets of HUF 4,548.6 billion at the end of June, down 4% from twelve months earlier. Net assets were up 5% at HUF 2,004.2 billion. MOL’s gearing ratio was 27.7% at the end of June.

MOL chairman-CEO Zsolt Hernádi said in the report that the company aimed to carry out “intensive investment programs” in Russia, Syria, the Kurdistan Region of Iraq and “of course in the core CEE countries” to further improve profitability of the upstream segment.

In the downstream segment, MOL’s assets are “delivering good results despite the still challenging refinery environment”, he said. “We are on the right track to transforming INA,” he added.