MOL Q3 profit drops as financial losses grow

Telco

Hungarian oil and gas company MOLʼs third-quarter net income fell 34% year-on-year to HUF 59.8 billion as revenues declined and financial losses grew, an earnings report released early Thursday shows, state news agency MTI reported.

Net income was under the HUF 68.7 bln estimate by analysts polled by business news site Portfolio.hu.

Revenues slipped 3% to HUF 1.405 trillion during the period. Total operating costs edged down 2% to HUF 1.302 tln. Operating profit dropped 15% to HUF 102.6 bln.

MOL booked a HUF 16.7 bln financial loss for the quarter, well over the HUF 3.7 bln loss in the base period. Earnings per share came to HUF 85.

MOL had total equity and liabilities of HUF 4.936 tln at the end of September, up 7% from 12 months earlier. Total equity was up 9% at HUF 2.451 tln.

Long-term liabilities increased 14% to nearly HUF 1.027 tln, while short-term liabilities inched 1% lower to HUF 1.457 tln.

MOL said its net debt-to-EBITDA ratio and net gearing were "broadly unchanged" in Q3 at 0.79 and 18%, respectively. The company added that it has maintained "considerable financial headroom and liquidity."

MOL noted a negative current cost of supplies (CCS) impact equivalent to around USD 43 million on net income.

MOL noted in a presentation of the Q3 results that clean CCS-based EBITDA fell 3% to USD 689 mln. Upstream EBITDA, excluding special items, dropped 26% to USD 235 mln on lower oil and gas prices and a slight decline in production.

Clean CSS-based downstream EBITDA increased 4% to USD 272 mln as "refining macro rebounded strongly," but the margin in the petrochemicals segment narrowed. EBITDA in the consumer services segment climbed 10% to USD 161 mln.

For the period Q1-Q3, clean CSS EBITDA fell 8% year-on-year to USD 1.837 bln.

In light of the strong Q3 EBITDA, MOL said it is raising annual guidance for clean CCS EBITDA to "around USD 2.4 bln."

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