MOL Group Q1 Shows Robust Earnings Growth
MOL Group announced its financial results for Q1 2017 in which all business segments – Upstream, Downstream, Consumer Services, Gas Midstream – managed to increase their contributions compared with the same period of the previous year.
Upstream EBITDA surged year-on-year by 50% and reached USD 219mn capitalizing on higher oil prices and the very competitive asset base. Production remained stable at 111,500 barrels of oil equivalent per day.
Downstream posted an all-time high first quarter clean CCS EBITDA delivering USD 324 mn, which is 15% higher than in the same period of the previous year. The growth was the result of much improved asset availability (and thus strong volumes and yields) and fairly supportive margins in both refining and petrochemicals.
Consumer Services also reported the best ever first quarter achievement with an EBITDA increase of 17% year-on-year. The USD 55mn result was due to stronger fuel sales volumes and higher non-fuel contribution. Motor fuel consumption rose 5% year-on-year in the Central Eastern Europe region, providing a supportive environment.
The Gas Midstream segment, a stable contributor to MOL Group’s overall results, reached USD 70mn EBITDA in the first quarter, up 4% year-on-year.
Chairman-CEO Zsolt Hernádi commented the results: “The first quarter was an excellent start to the year 2017 with all our business segments posting robust earnings growth, as we were able to fully capture the benefits of a supportive external environment on the back of our systematic efficiency improvement efforts and low-cost, high-quality asset base."
Zsolt added: "Downstream had its best ever Q1 on much improved asset availability and strong margins, Consumer Services (Retail) continued its impressive ascent, while Upstream successfully captured the benefit of higher oil prices and a very competitive cost base. These achievements provide a strong foundation for the rest of the year as we plan to deliver again at least USD 2bn EBITDA and pass major milestones in the implementation of our MOL Group 2030 strategy.”
