MOL Group holds investor day in London and Upgrades Mid-Term Targets
- MOL upgrades its EBITDA target by around 10% to an annual USD 2.2-2.4 bn over 2019-2021
- Upstream raises production guidance and aims to add 350 million barrels of oil equivalent of new reserves by 2023
- Downstream transformational projects will boost Group EBITDA to USD 2.4-2.6 bn by 2022-2023
- Consumer Services is expected to generate over USD 500mn EBITDA by 2023 by satisfying regional mileage demand, boosting consumer goods’ contribution as well as mobility services scale-up
London, November 8, 2018 – Today, MOL held an Investor Day in London to provide a progress report and an update on the strategic targets defined in the “MOL Group 2030” strategy announced two years ago. While retaining its resilient, integrated business model and consistently delivering strong results, MOL has embarked on a journey to transform itself to become a leading chemicals company in CEE and a truly customer centric organization, and to be the first choice of employees, customers and investors.
MOL raised its Clean CCS EBITDA guidance for 2019-21 by around 10% to USD 2.2-2.4 bn on the back of an upgraded mid-term production profile in Upstream and strong Consumer Services contribution. Looking further ahead, in 2022-23 MOL expects to further increase its annual EBITDA to USD 2.4-2.6 bn as the contribution from the Downstream strategic projects, including the investment into polyols, will already be visible.
The Upstream segment raised its mid-term production guidance. It now expects that the current portfolio will be able to produce 100-110,000 barrels of oil equivalent per day even until 2023. This is driven by the development program at the Shaikan Field in Kurdistan Region of Iraq and the extended UK plateau production, as well as by the optimization programs in Hungary and Pakistan. MOL will look to add 350 million barrels of oil equivalent new reserves by 2023.
Downstream will continue to boost efficiency and deliver net savings by 2023, while the first round of strategic and transformational projects shall already have a visible earnings contribution by 2022-23. MOL also sees significant upside potential in capturing the full benefit of International Maritime Organization’s (IMO) regulation for marine fuels. Since the fuel specification change will prohibit high sulphur marine fuels as of January 2020, margins may expand atthe Danube and Bratislava refineries, which have no material fuel oil production.
Consumer Services is expected to generate over USD 500 mn EBITDA by 2023 through satisfying CEE mileage demand, boosting Consumer Goods EBITDA and scaling up mobility services. MOL will double its Fresh corner sites to 1,250 by 2021. It will increase its MOL Limo car sharing fleet to 600 cars in Budapest, all electric, while also rolling it out to an additional 2-3 cities.
To view the whole Investor Day presentation click here.