Hungarian oil and gas company MOL on Tuesday reported a first-quarter after-tax loss of HUF 7.1 billion as operating costs climbed.
The consolidated IFRS loss compared to after-tax profit of HUF 66.5 billion in the base period. Net income plunged 99% to just HUF 676 million.
Analysts polled by Portfolio.hu had estimated the company would report net profit of about HUF 23 billion.
Basic earnings per share attributable to ordinary equity holders of the parent fell 99% to HUF 8.
Revenue edged up 1% to HUF 1,316.7 billion. Cost of raw materials and consumables was flat at HUF 1,012.4 billion. But total operating costs rose 7% to HUF 1,315.6 billion, lifted by higher payroll costs and "other" operating costs.
Operating profit fell 99% to HUF 1.1 billion.
The bottom line was further hit by a HUF 18.3 billion net financial loss, up 60% over the base period.
MOL said in the report that profit was negatively influenced by lower hydrocarbon output in the upstream segment and depressed regional demand and inventory losses in the downstream segment.
MOL announced earlier that revenue from upstream operations of its Croatian unit INA in Syria had ceased because of political unrest. INA group declared force majeure regarding the operations in February 2012.
Revenue of the upstream segment slipped 2% to HUF 194.7 billion but its operating profit fell at a faster rate, dropping 19% to HUF 59.8 billion.
In the downstream segment, revenue edged up 3% to HUF 1,158.4 billion but MOL booked a HUF 44.0 billion loss at operating level, compared to a HUF 5.4 billion gain in the base period.
Revenue of the gas and midstream segment jumped 182% to HUF 97.3 billion but operating profit was down 45% at HUF 8.0 billion.
MOL booked after-tax profit of HUF 73.8 billion in the first half, down 59% from the same period a year earlier.
Basic earnings per share came to HUF 847, done 50%.
First-half revenue was up 7% at HUF 2,677.0 billion, but total operating costs climbed 12% to HUF 2,592.6 billion on the back of higher raw material and consumables costs and "other" operating costs.
MOL said the lack of revenue in Syria came to HUF 43 billion in the first half or about 10.5% of total upstream revenue.
Operating profit fell 55% to HUF 84.4 billion.
The company booked a HUF 17.0 billion financial gain in H1 compared to a HUF 23.0 billion loss in the base period.
CAPEX rose 9% to HUF 102.9 billion in the first half.
MOL booked HUF 14.3 billion on a crisis tax energy sector companies must pay in H1.
MOL had total assets of HUF 4,770.1 billion on June 30, up 5% from twelve months earlier. Net assets rose 8.4% to HUF 2,171.8 billion.
Its gearing ratio fell to 27.7% from 28.1%.