MOL Q4 profit plunges as sales decline

Figures

The fourth-quarter net income of Hungarian oil and gas company MOL fell 53% year-on-year to HUF 17.3 billion on a decline in sales against the backdrop of the pandemic, an earnings report released early Friday shows.

Revenue dropped 29% to HUF 1.002 trillion.

Material costs fell at a faster rate, declining 34% to HUF 720.4 bln, but overall costs were down just 25% at HUF 1.023 tln.

MOL booked a HUF 21 bln loss at operating level, but deferred tax income lifted the bottom line.

MOL books full-year loss

For the full year, MOL booked a net loss attributable to owners of the parent of HUF 15.9 bln.

Revenue fell 23% to nearly HUF 4.067 tln. Total costs dropped 20% to just over HUF 3.999 tln.

MOL had an operating profit of HUF 67.4 bln, but a big financial loss weighed on the bottom line.

A breakdown by business segment shows MOL's upstream revenue fell 19% to HUF 398.1 bln, and the business had a HUF 48.5 bln loss at operating level.

Downstream sales dropped 27% to nearly HUF 3.38 tln, while operating profit of the segment plunged 91% to HUF 7.7 bln.

Sales of MOL's consumer services business fell 15% to almost HUF 1.453 tln but the segment's operating profit increased 12% to HUF 114.4 bln. The number of MOL petrol stations with Fresh Corner coffee shops rose to 955 in Q4 from 877 at the end of 2019.

Guidance for rising EBITDA    

In guidance for 2021, MOL put its full-year EBITDA at around USD 2.3 bln, excluding one-offs and at current cost of supplies, up from USD 2.05 bln in 2020.

Organic group CAPEX is set to rise to USD 1.7 bln-1.9 bln from USD 1.41 bln, as capital investments "need to catch up", chairman-CEO Zsolt Hernádi said.

"Even under major stress we are not losing sight of our vision and we will be doubling our efforts in 2021 to progress with our business transformation," he added.

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