Second-quarter net income of Hungarian oil and gas company MOL rose 7% year-on-year to HUF 77.8 billion, as it booked a smaller financial loss and paid less in tax, an earnings report released Friday shows, according to state news wire MTI.
Revenue was flat at HUF 1.345 trillion, but the cost of raw materials and consumables rose 4% to HUF 1.073 tln, causing margins to shrink. Total operating costs were up 3% at HUF 1.255 tln. Operating profit dropped 25% to HUF 89.4 bln.
MOLʼs bottom line was lifted by a smaller financial loss: HUF 2 bln, down from HUF 24.3 bln in the base period. It also booked HUF 12.6 bln in corporate profit tax, down from HUF 20.8 bln in Q2 2018.
Earnings per share came to HUF 111 for the period. MOLʼs net income was above the HUF 68.7 bln estimate by analysts polled by Portfolio.hu
MOLʼs consumer services business continued to expand in Q2, a breakdown by business segment shows. Revenue of the unit rose 7% to HUF 435.3 bln, while its operating profit climbed 6% to HUF 24.8 bln.
MOLʼs upstream revenue fell 4% to HUF 125.4 bln, and operating profit of the segment dropped 9% to HUF 45.1 bln. Downstream revenue stagnated at HUF 1.199 tln and profit of the business plunged 40% to HUF 47 bln.
MOL chairman-CEO Zsolt Hernádi noted that the companyʼs EBITDA, excluding one-offs and adjusted for current cost of supplies, reached USD 1.15 bln in the first half, putting MOL "well on track to meet or beat" full-year guidance for clean CCS EBITDA of USD 2.3 bln.
He added that MOL continued to generate positive simplified free cash flow even as it spent almost USD 300 million on strategic transformational projects, such as a polyol plant. MOLʼs guidance for full-year CAPEX is also unchanged at USD 1.9 bln-2.1 bln.
MOLʼs net gearing ratio rose to 19% from 15% during the period.