Good 3rd Quarter Results at Hungary's Oil&Gas Firm MOL

Supported by the macro-economic environment, the doubling petrochemicals margins compared to last year and the internal performance of the company, Clean CCS EBITDA strongly rebounded and came in at USD 1,025 mn in Q3 2021.

According to a press relase by the company, this result brought Q1-Q3 2021 EBITDA to USD 2,583 mn that allows MOL to further upgrade full year guidance to reach or even exceed USD 3.2 bn. Organic capital expenditure was 18% higher year-on-year in Q3 2021, reaching USD 360 mn of which USD 68mn was spent on transformational projects including the Polyol plant construction.

Meanwhile, world market perturbances, soaring commodity prices, logistics difficulties and the 4th wave of Covid19 pandemic create an overall relatively unpredictable operational environment.

Chairman-CEO Zsolt Hernádi commented the results as saying that “the good results of the third quarter have been supported by the favorable external environment and the rebounding regional economic growth. At the same time we also leveraged our strengths, the resilient integrated business model and our highly cost-efficient asset base and operation.
Our very strong year-to-date 2021 delivery allows us to further upgrade our annual EBITDA guidance, which is expected to reach or even exceed USD 3.2 bn. At the same time soaring commodity prices and the implications of the coronavirus pandemic pose a significant risk to the economy and generate a very volatile operational environment.
As a result, we remain focused to maintain financial and operational resilience and deliver on our longer-term sustainability related commitments. A higher year-to-date free cash flow generation allows us to fund our sizeable upcoming transformational investments within the framework of MOL’s 2030+ strategy.”

Upstream became the largest free cash-flow contributor of the Group in Q3 2021 as EBITDA jumped by 87% year-onyear to USD 396 mn and it was 18% higher even in comparison with the strong previous quarter, supported by the macro-economic environment. Production volumes slightly decreased and resulted in 107.4 mboepd, due to higher crude oil prices reducing net entitlement production in the ACG asset in Azerbaijan and due to the natural decline in Central and Eastern Europe.