MOL Group announced its third quarter financial results. In Q3 2015 MOL Group generated a clean CCS EBITDA of HUF 199bn (or USD 708mn), which is once again the best ever result with the Downstream business remaining the key contributor.
In the first three quarters of 2015 MOL Group delivered a clean CCS EBITDA of HUF 532bn (USD 1.92bn) indicating that the company is fully on track to meet the upgraded 2015 target of USD 2.2bn. Net profit reached HUF 163.1bn (USD 583mn), more than doubling the results from the same period last year.
Source: MOL Group
In Downstream, Q1-Q3 clean CCS EBITDA was HUF 348.5bn (USD 1.25bn), significantly higher than the base period HUF 132.3bn (USD 573mn). As a result of the continuous internal efficiency improvements within the framework of the Next Downstream Program, the Refining and Petrochemicals businesses succeeded in fully capturing the favorable external conditions.
Despite the fact that the oil price in Q1-Q3 nearly halved year-on-year, the Upstream segment’s results decreased by a much smaller extent, 23%. Average hydrocarbon production exceeded the base period by over 7%. In the matured CEE region output grew as a result of successful production intensification initiatives in Croatia by 3,000 boepd or 9%, while decline in Hungary was 1%, significantly below the previously targeted 5% level.
“The all-time high results of the third quarter once again provided evidence of MOL Group’s robust and resilient integrated business model and its ability to leverage the outstanding Downstream operating environment. Our Downstream business continues to surpass every expectation with its exceptional performance on the back of our superior asset base and the very supportive macro. With the uninterrupted delivery of efficiency measures and the expansion of the value chain in both petrochemicals and retail we are well-positioned to seize further opportunities in the segment. In Upstream, I am very satisfied that we have managed to considerably increase production contribution from the mature Central Eastern European fields compared to previous year’s levels, whilst our international projects have faced significant challenges amid low oil prices. With over USD 1.9bn delivered already in the first nine months, we are more than confident of reaching our USD 2.2bn EBITDA target set for this year. Furthermore, despite some likely softening of the downstream macro in 2016, we aim to preserve our strong EBITDA and free cash flow generation next year.” – commented Chairman-CEO Zsolt Hernádi the results.
MOL Group signed a farm-in agreement in October with the Det norske oljeselskap ASA for equity in three licences in the Norwegian Continental Shelf. The licences are located within MOL Norge’s strategic core area. The deal is subject to approval by the Norwegian government. MOL Group has also submitted bids for five new licences in the Norwegian 2015 Awards in Predefined Areas (APA) licensing round. The licenses are expected to be awarded in January 2016.