Hungary's MOL reports strong upstream, petchems

Hungarian energy company MOL reported May 7 Q1 2021 pre-tax earnings (EBIT) of $664mn on a clean current cost of supplies basis, up 7% on Q1 2020. This was despite the third wave of the Covid-19 pandemic and the subsequent travel restrictions and lockdowns in central and eastern Europe. Free cashflow was up 17% at $383mn and the company has resumed dividend payments.

Strong oil and gas prices, a record high petrochemical margin and the good performance of consumer aervices contributed to the results. Gas Midstream EBITDA however fell 33% year-on-year in Q1 2021 to $48mn, as both transit revenues and regulated income fell. Cross border capacity sales "materially decreased" and there was less demand for transmission  services generally.

CEO Zsolt Hernadi said the "strong performance" was the product of previous strategic initiatives combined with an integrated resilient business model." And the vaccination and gradual ease of lockdowns in the region give reasons for optimism, he said. 

Upstream EBITDA reached $307mn, an increase of 66% compared with last year's Q1 result and 70% higher than in Q4 2020. The good performance was driven by the continuously higher oil and gas prices and the contribution of the ACG oilfield in Azerbaijan. Output of 116,7000 barrels of oil equivalent/day was lower than in the previous quarter, but up 6% year-on-year. Free cash-flow from the upstream side doubled to $218mn.