MOL Group Upgrades Its 2017 Target Following Outstanding Half Year Results
Today, MOL Group announced its financial results for H1 2017. All business segments increased their earnings implying a 23% growth of Clean CCS EBIDTA in comparison with the same period last year. MOL has also reached a significant milestone in its petrochemicals transformation journey set out in the 2030 strategy through the signing of key licencing contracts for its flagship Polyol Project.
Upstream achieved robust results in the first half of 2017, posting an EBITDA of HUF 128bn (USD 447mn), 45% higher year-on-year, and generating a hefty amount of free cash flow at USD 321mn. The primary drivers of this upsurge were higher realized hydrocarbon prices on the back of a 30% increase in Brent crude price as well as lower operating costs. Average hydrocarbon production reached 110,000 barrels of oil equivalent per day during the first six months, in line with MOL Group’s 2017 guidance.
Downstream once again posted record high half-year Clean CCS EBITDA, delivering HUF 186bn (USD 652mn). This represented an 8% increase year-on-year, driven by stronger refinery margins and improved asset availability, which offset the lower petrochemicals margins.
Consumer Services (Retail) continued to benefit from strong volumes growth and non-fuel contribution, resulting in an all-time high H1 EBITDA of HUF 43bn (USD 150mn), 18% higher than last year in the same period.
The Gas Midstream segment delivered a half-year EBITDA contribution of HUF 31bn (USD 107mn), increasing 12% year-on-year on the back of materially higher volumes and stronger capacity fee revenues.
The first half of 2017 was marked by important milestones in the implementation of MOL Group’s 2030 strategy. The partnership agreements with Evonik and thyssenkrupp for MOL’s flagship investment into the propylene oxide value chain (the “Polyol project”) will give impetus to its petrochemical expansion and pave the way to become the leading chemical group in CEE. Furthermore, MOL is a step closer to build a network of 250+ electric vehicles chargers in CEE as part of the NEXT-E consortium, which received for this purpose EUR 19mn of EU funding.
Zsolt Hernádi, MOL Group Chairman-CEO, commented on the results: “We are materially upgrading our full-year 2017 guidance to above USD 2.3bn Clean CCS EBITDA (from “USD 2bn+”) thanks to the very strong performance of the Group in the first half of the year, which was a further testament to our resilient integrated business model and asset quality. We have also reached a significant milestone in our petchem transformation journey set out in the 2030 strategy as we have recently signed key licencing contracts for our flagship Polyol Project. Progressing with the MOL 2030 strategy is as much of a priority as to continue to generate the maximum return on our existing assets.”