MOL Q3 profit reaches HUF 28.5 bln on lower operating costs, depreciation

Telco

Net income of Hungarian oil and gas company MOL reached HUF 28.5 bln in the third quarter, improving over a loss of HUF 30.0 bln in the same period a year earlier, an earnings report published Thursday shows. The improvement was supported by falling operating costs and lower amortisation.

Revenue fell 7% to HUF 1,346.1 bln during the period, but cost of raw materials and consumables fell at a slightly faster rate, dropping 8% to HUF 1,074.9 bln. The "depreciation, depletion, amortisation and impairment" line on the profit and loss statement also fell sharply, from HUF 214.7 bln to HUF 66.3 bln.

MOL booked operating profit of HUF 90.9 bln, up from a HUF 57.0 bln loss in the base period.

A bigger financial loss, of HUF 40.9 bln, up 164%, weighed on the bottom line.

Basic earnings per share came to HUF 294.

MOL's adjusted EBITDA came to HUF 163.9 bln, well over the HUF 145.9 bln estimate by analysts polled by Portfolio.hu.

Revenue in all of MOL's business segments fell during the period. Upstream turnover was down 13% at HUF 127.8 bln, downstream revenue fell 6% to HUF 1,239.4 bln and revenue of the gas business fell 49% to HUF 36.5 bln. EBITDA of the upstream segment declined 22% to HUF 72.6 bln and it was down 35% at HUF 11.9 bln for the gas segment. But downstream EBITDA climbed 18% top HUF 67.7 bln.

MOL had total assets of HUF 4,772.9 bln at the end of September, up 2% from twelve months earlier. Net assets rose 3% to HUF 2,289.6 bln. Its gearing ratio fell to 17.2% from 20.7%.

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