MOL Group Downstream

MOL Group’s Downstream division consists of different business activities that are part of an integrated value chain. This value chain turns crude oil into a range of refined products, which are moved and marketed for household, industrial and transport use. The products include, among others, gasoline, diesel, heating oil, aviation fuel, lubricants, bitumen, sulphur and liquefied petroleum gas (LPG). In addition, the company produces and sells petrochemicals worldwide and holds a leading position in the petrochemical sector in the Central Eastern Europe region.

3 refineries
2 petrochemical units
11 countries
employees 9,400
Sales of 19 MTPA refined products
and 1,1 MTPA petrochemicals
417 MbPA refinery capacity
890 ktpa steam cracker capacity

2019 HIGHLIGHTS

  • In 2019 Downstream generated USD 866mn Clean CCS EBITDA, despite weaker macro environment.. A substantial drop in petchem margins was partly offset by strong sales margins and lower energy costs. Deteriorating macro condition was partly offset due to strong volumes and improved sales performance.
  • The EBITDA contribution of the DS2022 Program was almost USD 50mn in 2019, broadly achieved, due to efficiency improvement actions targeting asset availability, market position and strong focus on energy efficiency.
  • Polyol project progressed according to schedule in 2019. Having ThyssenKrupp Industrial Solutions as the EPC contractor for the main process units, also for the offsite and utility part of the new chemical complex in Tiszaújváros, by the end of 2019 the project has achieved close to 50% cumulated progress with no Lost Time Injuries (LTIs).
  • Polyol R&D Center in Százhalombatta was established in 2019. The new pilot plant will enable Polyol R&D to simulate the industrial production of polyols on laboratory scale. This will not only play an important role in product development of polyols, but also ensure that the starting product portfolio can be delivered on time.
  • By enabling access of Croatian domestic crude into the JANAF system and resolving taxation of refining business, all prerequisites were met to make a final investment decision in the Residue Upgrade Program in Rijeka refinery in December 2019.
  • In 2019 MOL Group has acquired 100% shareholding in Aurora, a German plastic compounder company. The acquisition contributes to MOL Group’s Enter Tomorrow 2030 strategy aiming at transitioning from a traditional fuel-based business model in Downstream to a higher value-added petrochemical product portfolio.

OUTLOOK FOR 2020-2023

  • Working towards profitable and technically feasible solutions to converge towards the 2030 vision of 50-50% fuel / non-fuel ratio and deepen its value chain in chemicals.
  • The DS2022 Program aims to add a total of USD 500mn+ to Downstream EBITDA by 2023.
  • Focus on further efficiency improvement and implementation of transformational projects.
  • INA 2023 New Course program continues the transformation of INA Downstream. Sisak Refinery proceeds with the transformation into an industrial site, which will include an approved bitumen production project, logistic hub and potentially lubricant production and a biorefinery.
  • Beside direct financial impact actions targeting improving HSE performance and further enhancement of Customer Satisfaction are also in the focus.