MOL Earnings Slip On Poor Market Conditions

Hungarian oil and gas firm MOL reported a slight dip in profits in the second quarter, owing to weaker oil and gas prices and slimmed refining margins.

Net income stood at $270mn in the three-month period, down from $274mn a year earlier, the company reported on August 2. Meanwhile its clean current cost of supplies (CCS)-based Ebitda declined to $634mn from $668mn. MOL generated $4.67bn in sales revenues, marking a 6% yr/yr decline.

MOL’s upstream business – which is concentrated in Europe and the Middle East – recorded a 17% yr/yr drop in Ebitda excluding special items to $269mn. Its downstream, comprising refineries and petrochemicals in central and eastern Europe (CEE), suffered a 29% decrease in Ebitda to $266mn.

Oil and gas production edged down 3% quarter on quarter to 111,800 boe/day in the three months ending June 30, as a result of natural decline at central and east European fields, although it was still up 2% yr/yr. MOL’s full-year guidance of around 110,000 boe/day remains unchanged.