MOL Q3 net income falls 29% as margins narrow
Third-quarter net income of oil and gas company MOL fell 29% year-on-year to HUF 47.7 billion as margins narrowed, an earnings report published early today shows.
Revenue rose 7% to HUF 1.039 trillion during the period, but the costs of raw materials and consumables climbed at nearly twice that rate, increasing 13% to HUF 792.7 billion. Operating profit declined 29% to HUF 66.1 bln. Earnings per share came to HUF 68.
In a press release quoted by national news agency MTI, MOL said that Q1-Q3 EBITDA, excluding one-offs and adjusted for current cost of supply, had risen 12% year-on-year to USD 1.87 bln, putting the company "on track" to reaching guidance for full-year clean CCS EBITDA of above USD 2.3 bln. After releasing its second-quarter earnings, MOL had raised the guidance from "at least USD 2 billion".
MOL also noted the launch of a program dubbed Downstream 2022 that targets an additional USD 500 million of EBITDA by 2022 on the back of USD 2.1 bln of CAPEX. MOL chairman-CEO Zsolt Hernádi called Downstream 2022 "a program of efficiency, transformation and growth", adding that the company had secured all the technological licences and engineering resources for the programʼs flagship project, a USD 1 bln polyol plant.
Third-quarter revenue of MOLĘĽs downstream business climbed 13% year-on-year to HUF 923.6 bln, a breakdown by business segment shows. EBITDA of the business dropped 24% to HUF 66 bln. Revenue of the upstream business edged up 1% to HUF 91.6 bln but its EBITDA fell 10% to HUF 42.2 bln. The consumer services business generated revenue of HUF 308 bln and EBITDA of HUF 34.5 bln, up 4% and 11%, respectively. MOL said both fuel and non-fuel earnings of the business had continued to grow, producing its best every quarterly result.
MOL had total assets of HUF 4.042 tln at the end of September, up 1% from 12 months earlier. Net assets rose 11% to HUF 1.988 tln. Non-current liabilities fell 3% to HUF 905.1 bln. MOLĘĽs net gearing ratio dropped to 17%.
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