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Higher revenue, lower financial loss lift MOL Q4 profit 79%

Hungarian oil and gas company MOL had net income of HUF 33.0 billion in Q4, up 79% from the same period a year earlier as revenue rose and financial losses narrowed, MOL’s consolidated IFRS report for the period show.

Profits were under the HUF 45.1 billion estimate by analysts in a poll by

Basic earnings per share (EPS) came to HUF 391 for the period, up from HUF 219 in Q4 2009. Diluted EPS rose to HUF 362 from HUF 219.

Revenue climbed 16% to HUF 1,186.5 billion.

Cost of raw materials and consumables rose 14% to HUF 868.4 billion and total operating costs increased 16% to HUF 1,123.6 billion. Operating profit increased 18% to HUF 62.9 billion.

Net financial costs narrowed to HUF 23.5 billion from HUF 36.0 billion.

Pre-tax profit came to HUF 42.7 billion, up sharply from HUF 8.9 billion.

For the full year, MOL's consolidated net income rose 6% to HUF 100.8 billion. The bottom line was hit by HUF 25.8 billion paid in crisis tax, levied on energy companies for the first time in 2010, and by HUF 35.2 billion in additional royalty payments the state was ordered to recover by the European Commission, the company noted. MOL booked HUF 19.8 billion of the crisis tax payment in Q3 and HUF 6.0 billion in Q4.

Revenue rose 29% to HUF 4.330.4 billion last year.

Excluding revenue of MOL's Croatian unit INA, turnover climbed 19% to HUF 3.481.7 billion and net income rose 78% to HUF 99.2 billion. MOL holds a 47.2% stake in INA.

Consolidated cost of raw materials and consumables increased 27% to HUF 3,253.4 billion and total operating costs were up 30% at HUF 4.089.8 billion.

Operating profit rose 4% to HUF 240.6 billion.

MOL booked a HUF 83.4 billion net financial loss in 2010, up from a HUF 60.3 billion loss in 2009. MOL recognized a HUF 46.6 billion forex loss but did not say if it was realized or unrealized.

In a breakdown of revenue and including intersegment transfers, MOL said its refining and marketing division generated HUF 3,636.3 billion, up 34%. Revenue of the upstream segment jumped 58% to HUF 772.7 billion as developments started producing and because of price and foreign exchange changes. Revenue of the petrochemicals segment rose 35% to HUF 524.2 billion and revenue of the gas and power division inched up 1% to HUF 516.6 billion.

Capital expenditures came to HUF 332 billion, down 13%. CAPEX at INA reached HUF 106.2 billion.

MOL had total assets of HUF 4,487.3 billion on December 31, 2010, up 8% from twelve months earlier. Net assets were also up 8% at HUF 1,973.9 billion.

Net debt fell to HUF 898.5 billion to give it a 31.3% gearing ratio at the end of 2010. Excluding the consolidation of INA, net debt reached HUF 577.4 billion.

MOL had 1,623 petrol stations at the end of the period, including 364 in Hungary and 467 in Croatia.

MOL's headcount was 32,410 at the end of 2010, including 14,671 at INA. Total headcount fell 1,680 from the end of 2009, and about a third of the decline was at INA. (MTI – Econews)