MOL withdraws 2020 EBITDA guidance

Deals

josefkubes / Shutterstock.com

Hungarian oil and gas company MOL on Wednesday said it is withdrawing its guidance for 2020 EBITDA because of uncertainty related to the coronavirus pandemic, according to a report by state news wire MTI.

Image by josefkubes / Shutterstock.com

The guidance is being withdrawn because of "the uncertainty related to the duration and impact of the coronavirus pandemic, the extreme volatility of the external environment and the unpredictability of volumes development across our businesses", MOL said.

MOL said 2020 CAPEX will be "at least 25% lower" than the original guidance of USD 1.9 billion-2.1 bln - at below USD 1.5 bln - because of the delay of non-essential investments and supply chain bottlenecks caused by lockdowns.

MOL said it will soon complete a comprehensive review of operating costs "to support our goal of cash preservation".

"All measures ultimately serve the purpose to preserve cash and allow for MOL to maintain cash neutrality, while our operations are running uninterrupted," it added.

Even after closing the acquisition of a stake in the Azeri-Chirag-Gunashli oil field in the Caspian Sea, MOL said it will continue to have ample liquidity with "around USD 2 bln-2.5 bln financial headroom in the form of cash and cash equivalents and undrawn credit facilities".

"This should allow MOL to successfully manage through these challenging times even in the case of a longer-lasting crisis and also to accelerate activities and grab opportunities once normalization begins," it added.

MOL said its board is proposing placing all of last yearʼs profit into retained earnings, in line with short-term efforts focusing on cash preservation and retaining maximum flexibility.

"Once the situation normalizes and circumstances allow for it, these retained earnings may be used for cash dividend distribution upon the decision of shareholders," it added.

ADVERTISEMENT

Almost half of Hungarians get fringe benefits, survey shows Analysis

Almost half of Hungarians get fringe benefits, survey shows

19,000 young jobseekers hired in expanded subsidy program Government

19,000 young jobseekers hired in expanded subsidy program

Manager screenings - not just for managers Interview

Manager screenings - not just for managers

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.