Higher oil prices, improved petchem margins lift MOL earnings

Figures

Hungarian oil and gas company MOL booked consolidated first-quarter net income of HUF 92.3 billion, improving from a HUF 48.4 bln loss in the base period, as oil prices rose and petrochemical margins widened, an earnings report released early Friday shows, according to a report by state news wire MTI.

Operating revenue fell 6% to HUF 1.116 trillion. The cost of raw materials and consumables dropped 7% to HUF 828.8 bln and total operating expenses declined 14% to nearly HUF 1.004 tln.

MOL booked HUF 112.2 bln in operating profit, up from HUF 26 bln in the base period.

Revenue of MOL's upstream business increased 24% to HUF 126.5 bln and operating profit in the segment jumped 64% to HUF 25.9 bln.

Downstream revenue edged down 2% to HUF 960.9 bln but the operating profit of the business came to HUF 74.7 bln, improving from an HUF 11.1 bln loss in the base period.

MOL's consumer services business generated a turnover of HUF 369.7 bln, down 1%, but operating profit of the segment climbed 77% to HUF 25.4 bln.

Earnings per share came to HUF 131. MOL acknowledged the impact of inventory gains, as well as higher EBITDA, on EPS.

MOL said its EBITDA, excluding one-offs and at the current cost of supplies, reached USD 664 million in Q1 and confirmed guidance for full-year clean CCS EBITDA of around USD 2.3 bln.

Oil and gas production for the quarter stood at 117,000 barrels of oil equivalent per day. Guidance for the year is about 110,000 boed per day.

MOL also confirmed it expects to spend USD 1.7 bln-1.9 bln on organic CAPEX. First-quarter CAPEX came to USD 281 mln.

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