MOL Q3 earnings jump on higher crude prices, wider refining margins
Third-quarter net income of Hungarian oil and gas company MOL rose 145% year-on-year to HUF 139.2 billion as crude prices climbed and refinery margins improved, state news wire MTI reports, citing an earnings report published Friday.
Revenue increased 56% to HUF 1.658 trillion.
Cost of raw materials and consumables rose 53% to HUF 1.199 tln and total operating costs climbed just 47% to HUF 1,468 tln.
Operating profit jumped 171% to HUF 190.6 bln.
A breakdown by business segment shows downstream turnover rose 67% to HUF 1.473 tln, while operating profit of the business rocketed 273% to HUF 88 bln.
Upstream revenue rose 73% to HUF 172.5 bln and the business had an operating profit of HUF 65.2 bln, compared to a HUF 1.7 bln loss in the base period.
MOL's consumer services business had turnover of HUF 573.3 bln, up 36%, while operating profit climbed 18% to HUF 54.3 bln.
"The good results of the third quarter have been supported by the favorable external environment and the rebounding regional economic growth. At the same time we also leveraged our strengths, the resilient integrated business model and our highly cost-efficient asset base and operation," chairman-CEO Zsolt Hernádi said, commenting on the report.
"At the same time soaring commodity prices and the implications of the coronavirus pandemic pose a significant risk to the economy and generate a very volatile operational environment," he added.
In updated guidance, MOL put full-year EBITDA, adjusted for one-offs and at current cost of supply, "around or above USD 3.2 bln", up from USD 2.05 bln in 2020.
It sees organic CAPEX reaching about USD 1.7 bln, rising from USD 1.41 bln in 2020.
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