Fourth-quarter net income of Hungaryʼs MOL fell 53% year-on-year to HUF 37 billion as the oil and gas company footed a bigger tax bill, state news wire MTI reports, citing an earnings report released early Friday.
Revenue was practically flat at approximately HUF 1.401 trillion. Total operating costs were also close to level with the base period at a bit under HUF 1.357 tln.
A HUF 5.4 bln financial gain - compared to a HUF 6.7 bln loss in the base period - supported an 11% rise in pre-tax profit to HUF 45.5 bln. But an HUF 11 bln cost for corporate profit tax weighed on the bottom line, unlike in the base period, when deferred taxes lifted earnings by HUF 28 bln.
MOLʼs net income for the full year fell 26% to HUF 223.2 bln as operating costs rose a little more than revenue.
Revenue edged up 2% to about HUF 5.297 tln, while total operating costs increased 3% to approximately HUF 5.003 tln.
Operating profit fell 17% to HUF 294.1 bln.
A breakdown by business segment shows MOLʼs upstream operating profit dropped 5% to HUF 136.9 bln, while the operating profit of the downstream business was halved to HUF 80.8 bln. Operating profit of the gas and midstream business rose 10% to HUF 40.3 bln and the operating profit of the consumer services segment increased 17% to HUF 102.5 bln.
MOL said that its dollar EBITDA, cleared of one-off effects and adjusted for the current cost of supply (CCS), reached USD 2.44 bln for the full year, over the upgraded guidance for clean CCS EBITDA of USD 2.4 bln.
Downstream CCS EBITDA declined 13% to USD 866 million as refining and petrochemical margins narrowed, but MOL noted the expansion of consumer services, calling the business its "star performer".
MOL put 2020 clean CCS EBITDA "around USD 2.5 bln", in the middle of a USD 2.4 bln-2.6 bln guidance range it issued in an investor presentation last November.