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MOL Group Announces 2016 Q3 Results
* MOL upgrades its 2016 clean CCS EBITDA guidance to around USD 2.2 bn
* Upstream EBITDA is up 12% year-on-year, first increase since 2011
* Downstream was flat quarter-on-quarter after major maintenance in Hungary
* Strong free cash flow generation of almost USD 1bn in Q1-Q3
Last Friday, MOL Group announced its financial results for Q3 2016. Clean CCS EBITDA reached HUF 165bn (USD 590 mn) in Q3, a stetement sent to ACTmedia reads. On the back of a strong first nine months delivery (USD 1.68bn), MOL upgraded its Clean CCS EBITDA target to around USD 2.2 bn for 2016.
MOL had a major planned maintenance at its Danube refinery and Tiszaujvaros petrochemicals plant, which had some effect on the Downstream results. Downstream clean CCS EBITDA was stable quarter-on-quarter, but declined compared with record-high level of the same period last year. The acquisitions of Eni Hungaria and Eni Slovenia already contributed to the retail results, which reached an all-time high.
Oil and gas production was 107 thousand barrels of oil equivalent per day in Q3, up by 6% compared with the same period last year driven by an increase in oil production. Over the first nine months production averaged 110 thousand boepd, which means that MOL is on track to reach the high-end of its production target range (105-110,000). Due to higher production and MOL’s relentless efforts to control costs, Upstream has delivered its first EBITDA growth (+12%) since 2011.
MOL has been once again included in the Dow Jones Sustainability World Index, implying top 15% performance among global upstream and integrated oil and gas companies based on its corporate sustainability. Furthermore, MOL Group also won the prestigious Petroleum Economist Awards 2016 for Best Downstream Company of the year.
Chairman-CEO Zsolt Hernádi commented on the results: “MOL continued to deliver strong results and cash flows in Q3 2016 helped by its resilient integrated business model and relentless focus on efficiency and cost discipline. We are now confident that we can even outperform our initial plans for the year, hence we upgrade our 2016 Clean CCS EBITDA guidance to around USD 2.2bn. We also look forward to unveiling more details regarding our strategic plans and targets next week at our Capital Markets Day. We believe that our high quality, efficient asset base and resilient integrated business model, which have been tested by extreme macro conditions and proved to be capable of consistently generating strong free cash flows over the years, serve as an excellent base for the implementation of our new long-term strategy (“MOL Group 2030 – Enter Tomorrow”), which the Board of Directors approved in October.”
About MOL Group
MOL Group is an integrated, international oil and gas company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 8 countries and exploration assets in 13 countries. MOL Group operates four refineries and two petrochemicals plants under integrated supply chain management in Hungary, Slovakia and Croatia, and owns a network of nearly 2,000 service stations across 10 countries in Central & South Eastern Europe.