Are you sure?

Narrowing margin, FX loss put MOL in red

Hit by a narrowing margin and a big, albeit mainly unrealized, foreign exchange loss, Hungarian oil and gas company MOL reported a second-quarter loss of HUF 43.2 billion.

The loss, consolidated and calculated with IFRS, was roughly level with the HUF 42.6 billion estimate of analysts in a poll by portfolio.hu. It compared to net income of HUF 178.5 billion in the same period a year earlier.

Earnings per share came to negative HUF 512 during the period.

MOL booked a HUF 75.8 billion FX loss in Q2, but the company noted it was mainly unrealized. The item brought total financial losses to HUF 77.2 billion, compared to a financial gain of HUF 103.6 billion in Q2 2009.

The forint weakened 5% to the euro and 21% to the dollar in the twelve months to the end of June.

Revenue climbed 40% to HUF 1,055.4 billion, but operating costs rose 47% to HUF 995.9 billion, causing operating profit to fall 24% to HUF 59.5 billion.

MOL’s pre-tax loss was HUF 16.0 billion.

Excluding the effect of MOL’s 47.2% stake in Croatian peer INA, which was fully consolidated first in Q3 2009, Q2 losses came to HUF 33.9 billion. Without INA, revenue rose just 18% to HUF 873.7 billion.

In a breakdown by business segment, MOL said revenue of its refining and marketing division rose 47% to HUF 888.5 billion. Operating profit of the division plunged 50% to 20.8 billion.

The price of Ural crude, for which MOL’s refineries are specially outfitted, rose 32% during the period.

Revenue of the exploration and production division jumped 121% to HUF 177.0 billion and operating profit climbed 152% to HUF 38.3 billion. Excluding MOL’s stake in INA, revenue of the division was HUF 96.5 billion

Revenue of the gas and power segment nearly quadrupled to HUF 150.1 billion from HUF 39.7 billion. Operating profit was up 78% at HUF 20.7 billion.

Petrochemicals revenue increased 51% to HUF 122.3 billion and operating profit came to HUF 1.6 billion, compared to a HUF 9.3 billion loss in the same period a year earlier.

MOL’s first-half earnings were also hurt by a narrowing margin and financial losses. It booked a HUF 24.2 billion loss for the period compared to net income of HUF 63.7 billion in H1 2009.

First-half revenue rose 38% to HUF 1,931.9 billion, but operating costs climbed at a faster pace, increasing 44% to HUF 1,812.9 billion, causing operating profit to fall 19% to HUF 119.0 billion.

MOL had a HUF 100.7 billion net financial loss in H1, well over the HUF 43.6 billion loss in the same period a year earlier.

MOL said it aimed to add $210 million to its full-year EBITDA from 2012 compared to 2009 by integrating operation of its five refineries and two petrochemicals units.

MOL had total assets of HUF 4,732.3 billion on June 30, 9% more than twelve months earlier. Net assets rose 14% to HUF 1,907.0 billion. Non-current liabilities fell 5% to HUF 1,488.4 billion as long-term debt dropped 20% to HUF 1,028.5 billion. (MTI – Econews)