MOL Group announces 2015 Half Year results
- Best ever quarterly result - HUF 180bn (USD 648mn) - with strong contribution from Downstream
- Half Year Clean CCS EBITDA at HUF 334bn (USD 1.2bn), up 67% year-on-year
- Clean CCS EBITDA target upgraded by 10% to USD 2.2bn for the year
- Net profit at HUF 71.7bn (USD 258mn), a 60% increase compared with H1 2014
Budapest, 5th August 2015 – Today, MOL Group announced its second quarter and half year results. With half year Clean CCS-based Group EBITDA reaching USD 1.2bn, MOL Group raised its 2015 target to USD 2.2bn. MOL Group achieved its best ever quarterly result with the Downstream business fully capturing the favorable external conditions.
In the first half of 2015, MOL delivered a Clean CCS EBITDA of USD 1.2bn which bodes well with the upgraded full year’s target of USD 2.2bn. Organic CAPEX spending amounted to USD 557mn in the first two quarters and operating cash-flow (excluding working capital adjustments) well exceeds organic investments, which is a great achievement in the current business environment.
Upstream EBITDA, excluding special items, amounted to HUF 114bn (USD 414mn) in H1 2015, lower by HUF 27bn compared to H1 2014. The average daily hydrocarbon production increased by 8% in comparison to the base period and averaged 103,500 barrel per day during H1 2015. Production increased even in the matured CEE region (by 4%) due to successful well optimization programs, new offshore wells and improved reserves transfer.
In H1 2015, Downstream clean CCS-based EBITDA increased fourfold to HUF 202bn (USD 730mn). Each business segment substantially improved its contribution to the Group result. Clean EBITDA of Refining and Marketing as well as petrochemicals increased fivefold during the period, the latter representing 35% of the total Downstream result in H1 2015. Apart from the better margins, improving market demand and continuous internal efficiency improvement contributed to the record-high results to a large extent.
In the first half of 2015, MOL Group generated HUF 313bn (USD 1.135bn) operating cash flow, before working capital changes, which is 55% higher than in the same period in 2014, mainly supported by strong Downstream performance. Meanwhile, net gearing increased slightly, from 18.4% to 21.4% by the end of the period.
Looking at the quarterly results, in Q2 2015 MOL Group generated a clean CCS EBITDA of HUF 180bn (or USD 648mn) which is the best ever result by the Group. The Downstream business delivered by far its strongest ever quarterly result and contributed more than two-thirds to the corporate clean CCS EBITDA.
“MOL Group delivered its best ever quarterly results. We expect to significantly exceed our previous expectations and surpass our 2015 clean EBITDA target by 10%, reaching a level around USD 2.2bn and matching our 2014 performance. This is a great achievement in light of on-going weakened oil prices and demonstrates the strength of our integrated business model. We are proud of our Downstream team, which delivered its best ever results. This shows that we are well-placed to benefit from the present opportunities in the downstream sector and also reflects the successful implementation of our efficiency enhancement measures. Meanwhile, in order to ensure efficient capital allocation we have further scrutinized potential spending. Currently we expect around USD 1.3bn organic investment. We will maintain our excellent free cash flow generation and strong financial position, which is a key advantage in the current volatile environment.” – commented Chairman-CEO Zsolt Hernádi the results.
Watch MOL Group CFO József Simola discuss MOL Group’s results and outlook at www.molgroup.info