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MOL Group Announces 2013 Full Year Results

February 27, 2014



ENP Newswire - 27 February 2014

Release date- 26022014 - Budapest - Today, MOL Group announced its financial results for 2013. Despite deteriorating market conditions, CCS-based Group downstream results improved exceptionally.

The Upstream portfolio faced significantly lower realised hydrocarbon prices and declining production. At the same time the Group preserved its excellent cash flow generation capability and strengthened its financial position further.

In 2013, MOL delivered a clean CCS EBITDA of HUF 516bn which is 9% behind last year's performance. Reported operating profit was negatively affected by Syrian and Croatian asset write-downs, the latter due to the loss making INA Downstream operation, and items associated with the conversion of the Mantova refinery.

In line with the guidance given at the beginning of this year, the Downstream segment outperformed last year's clean CCS-based EBITDA. Amid strong macroeconomic headwinds, including a collapsing product margin environment and a tightening Brent-Ural spread, this outstanding result can be attributed to the efficiency improvement actions achieved as part of the New Downstream Programme as well as higher refined product sales and improving petrochemicals margins.

In Upstream, on the one hand, performance was negatively affected by a drop in average realised hydrocarbon prices (down by 10%), mainly attributable to a decline in natural gas prices in Hungary and Croatia while on the other hand, MOL Group faced shrinking production as well, mostly driven by gas production decreases in the CEE region. In addition, MOL divested its Russian ZMB production field in August. Excluding the contributions of ZMB and Syria, production amounted to 100 mboepd, a drop of 7% compared to 2012.

Gas Midstream delivered similar results to those of last year as the negative effects of the tightening Hungarian gas transmission regulation were compensated for by a lower level of losses in the Croatian gas trading business due to lower sales volumes.

As a result of strong operating cash flow achieved, the Group's financial position improved further. The year-end gearing ratio of 16% is the lowest since 2008.

MOL Chairman-CEO Zsolt Hernadi commented on the results: 'I'm very glad to say that we successfully preserved the excellent cash flow generation capability of MOL Group. Nevertheless our clean results decreased as our Upstream portfolio faced declining production. To mitigate this decline and return to growth as soon as possible we are accelerating our key projects further. These include the fast-track development of the Akri-Bijeel Block, which could already deliver its first oil by the second quarter of 2014.

In line with our strategy we also took inorganic steps when we announced our entry into the North Sea region. We acquired interests in oil producer projects which will support our production growth even in short-term. Going forward down this road, we are looking for attractive M & A opportunities to achieve a step change in Upstream. In Downstream, we can be proud that we kept our promise to deliver similarly strong results as a year before even in a worsening external environment. Our intention is to continue our internal efficiency improvement programme in 2014.'

About MOL Group

MOL Group is an integrated, independent, international oil and gas company, headquartered in Budapest, Hungary. It has operations in over 40 countries and employs almost 29,000 people worldwide. MOL's exploration and production activities are supported by more than 75 years' experience in the hydrocarbon field. At the moment, there are production plants in 7 countries and exploration assets in 11 countries. The Group operates four refineries and two petrochemicals plants, under integrated supply chain management, in Hungary, Slovakia and Croatia. MOL Group also owns a network of over 1,700 filling stations across 11 countries in Central & South Eastern Europe.

Press Contact:

Judit Nemeth

Tel: +36 20 254 5169

Tamas Berzi

Tel: +36 20 409 7632


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Source: ENP Newswire


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