MOL Q3 profit falls as margins narrow, financial losses grow

Telco

Net income of Hungary’s MOL fell 60% to HUF 36.4bn in the third quarter from the same period a year earlier as margins narrowed and financial losses grew, the oil and gas company’s consolidated IFRS report published early Tuesday shows.

The result was far better than the HUF 32.7bn loss estimated by analysts polled by Portfolio.hu.

Basic earnings per share came to HUF 417 during the period.

Revenue rose 14% to HUF 1,366.0bn in Q3 from the same period a year earlier. But cost of raw materials and consumables climbed at a faster rate, increasing 18% to HUF 1,066.7bn. Total operating costs were also up 18% at HUF 1,315.2bn, causing operating profit to drop 39% to HUF 50.8bn.

MOL booked an HUF 18.3bn financial loss in Q3, well over the HUF 10.3bn loss in the base period.

MOL noted that the price of Ural Blend jumped 48% and the price of Brent was up 47% during the period.

MOL had net income of HUF 183.0bn in Q1-Q3, well over the HUF 67.9bn in the base period. Costs rose at about the same rate as revenue and the company had a slight financial gain compared to a big financial loss in the base period.

Revenue rose 23% to HUF 3,876.6bn. Cost of raw materials and consumables was up 29% at HUF 3,078.7bn, but total operating costs rose at the same pace as revenue to HUF 3,638.2bn.

MOL booked a tiny HUF 71m financial gain in Q1-Q3 compared to a HUF 59.9bn loss in the base period.

In a breakdown by segment, MOL said its downstream division generated revenue of HUF 3,505.9bn in Q1-Q3, up 16% from the same period a year earlier. Downstream operating profit plunged 68% to HUF 13.2bn.

Upstream revenue was up 7% at HUF 565.9bn and operating profit climbed 42% to HUF 234.4bn.

The gas and midstream segment had revenue of HUF 281.5bn, down 48%, but operating profit rose 42% to HUF 48.9bn.

MOL’s capital expenditures came to HUF 165.1bn in Q1-Q3, down 31% from the base period.

MOL said it paid more than HUF 20bn during the period on a crisis tax levied on energy companies.

MOL had total assets of HUF 4,771.1bn on September 30, 2011, up 3.2% from twelve months earlier. Net assets rose 11.7% to HUF 2,156.5bn. MOL’s gearing ratio reached 26.5% at the end of the period.

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.