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MOLʼs revenues, profits surge in third quarter

Third-quarter net income of Hungarian oil and gas company MOL rose 89% year-on-year to HUF 90.0 billion, supported by higher revenues, an earnings report published early Wednesday shows, Hungarian news agency MTI reported.

MOLʼs total revenues climbed 40% to HUF 1,454.3 bln during the period. Total operating costs rose at a slightly slower pace, increasing 37% to HUF 1,332.9 bln, lifting operating profit 84% to HUF 121.4 bln.

Net income was well over the HUF 78.6 bln estimate by analysts polled by business news portal Portfolio.hu, with earnings per share coming to HUF 129.

A breakdown by business segment in the report shows net revenue of MOLʼs downstream business rose 39% to HUF 1,284.5 bln, while the segmentʼs EBITDA increased 35% to HUF 89.3 bln.

Net upstream revenue climbed 66% to HUF 151.7 bln, and EBITDA in the segment jumped 111% to HUF 88.9 bln. MOLʼs consumer services business had net sales of HUF 467.0 bln, up 52%. The businessʼs EBITDA rose 19% to HUF 40.9 bln. 

Net sales of the gas midstream business fell 5% to HUF 18.6 bln, while EBITDA dropped 39% to HUF 7.0 bln.

Hernádi confident of meeting guidance

MOL Chairman-CEO Zsolt Hernádi said the "very strong" Q3 results would allow the company to "comfortably meet or beat" earlier guidance for full-year EBITDA, at current cost of supplies and adjusted for one-off effects, of USD 2.4 bln.

The companyʼs clean CSS Q1-Q3 EBITDA reached USD 2.0 bln, the report shows. In 2017, MOLʼs clean CSS EBITDA came to USD 2.45 bln.

MOL had total assets of HUF 4,615.7 bln at the end of September, up 14% from twelve months earlier. Current liabilities rose 28% to HUF 1,468.1 bln, while non-current liabilities edged down 1% to HUF 897.7 bln. MOLʼs gearing ratio fell from 17.2% to 13.2% during the period.

The companyʼs capital expenditures came to USD 713 mln in Q1-Q3, but it targets full-year CAPEX of USD 1.1-1.3 bln. Consumer services capex nearly doubled in Q1-Q3, in line with plans, as MOL added Fresh Corner coffee shops at petrol stations and launched new mobility services.