MOL Group Q3 results: supported by Upstream and Downstream, affected by fuel price regulations and windfall taxes
- Clean CCS EBITDA resulted in USD 1,449mn in Q3 2022, driven by strong Upstream and Downstream performance and affected by fuel price regulations and windfall taxes
- Clean CCS EBITDA for the first 3 quarters reached USD 3,627mn, MOL raises annual EBITDA guidance range to USD 4.1bn-4.4bn
- The estimated impact of fuel price regulation and windfall taxes across the CEE region amounted to approximately USD 1,180mn in the first 3 quarters of 2022
- Upstream EBITDA almost doubled year-on-year to USD 640mn, driven by external macro conditions
- Downstream Clean CCS EBITDA came in at USD 741mn in Q3 2022 as diminishing petchem contribution was offset by higher R&M EBITDA generation
- Consumer Services EBITDA almost halved since last year’s Q3 and reached USD 121mn EBITDA, mainly due to fuel price regulations in several CEE countries
Budapest, 04November 2022 – Today, MOL Group announced its financial results for the third quarter of 2022. Supported by the strong Upstream and Downstream performance, driven by the macroeconomic factors, Clean CCS EBITDA resulted in USD 1,449mn in Q3 2022. This result brought Q1-Q3 2022 EBITDA to USD 3,627mn that allows MOL to further upgrade full year EBITDA guidance range to USD 4.1bn-4.4bn. At the same time, windfall taxes and fuel price regulations across the CEE region hit our operations by approximately USD 1.18bn in Q1-Q3 2022.
Chairman-CEO Zsolt Hernádi commented the results:
„While macro conditions evolved favourably for the oil and gas industry in the first nine month of the year, the uncertain external environment, the looming recession, the state interventions and windfall taxes cast uncertainty over the industry. European sanctions seems to determine the economic future of Europe, the third quarter of 2022 proved to be very tight in terms of energy supply in the Central Eastern European region. So far we managed to maintain stable fuel supplies in several CEE countries, I consider it as our biggest achievement in this quarter thanks to the extraordinary efforts of MOL’s employees. We will need our colleagues’ commitment in the future as well as we need a disciplined financial approach to deliver the upcoming transitional investments to guarantee energy security, to switch from Russian energy sources and not to lose sight of the green transition. We took a major step on our 2030+ roadmap: MOL was awarded with a concession for municipal and communal waste management services covering a period of 35 years in Hungary, allowing us to expand in a new, low-carbon, circular economy business.”
Upstream EBITDA almost doubled year-on-year to USD 640mn in Q3 2022, year-to-date delivery stood at USD 1.72bn that represents almost half of the Group’s total EBITDA. The main driver of the strong result in Q3 were the macro indicators that were able to offset the negative impact of extra royalties in the last quarter. Oil and gas production volume exceeded 90 mboepd in Q3 2022 while in the first 3 quarters it reached an average of 92.3 mboepd, surpassing the annual 90 mboepd production guidance. Group unit OPEX remained under 5 USD/boe, despite significant cost pressure across the value chain.
Downstream Clean CCS EBITDA increased year-on-year and reached USD 741mn in Q3, but decreased by 14% compared to the previous quarter. Price regulations and windfall taxation in CEE hit the segment’s profitability in Q3 2022 and petchem EBITDA decreased by 90% year-on-year, but strong R&M contribution offset the negative drivers. The planned major maintenance of the Százhalombatta refinery was successfully completed in the Q3 period.
Consumer Services Q3 2022 EBITDA decreased by 43% year-on-year, and more than halved if we compare the first 3 quarters with last year’s Q1-Q3 period. Fuel price regulatory measures in several CEE countries affected the results,the segment’s EBITDA decreased by USD 85mn due to fuel price caps in the CEE region. Non-fuel margin improvement and sales volume increase partly mitigated the negative drivers. The number of Fresh Corner sites rose to 1,130 in Q3 2022 from 1,103 in Q2 2022.
The Federal Supreme Court of Switzerland dismissed Croatia’s revision request of the UNCITRAL award, that was originally issued in the arbitration proceeding initiated by Croatia against MOL in 2016. This award rejected Croatia’s corruption allegations and also found that corporate governance of INA d.d. was lawful and MOL complied with all of its contractual obligations.
MSCI Global Sustainability Index recognized MOL’s ESG efforts with “AA” rating for the fifth year in a row. MOL Group have been staying at the top ~20% among integrated oil & gas company peers, this year the score increased both in case of Environmental (‚E’) and Governance (‚G’) dimensions due to strong carbon mitigation strategies and improved corporate reporting practices. In case of Social (‚S’) dimension rating remained unchanged.
About MOL Group
MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemicals plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of almost 2000 service stations across 10 countries in Central & South Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 9 countries and exploration assets in 14 countries.
MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central-and Eastern Europe.