The Hungarian oil and gas giant MOL Group has announced its financial results for 2019 this Thursday. The report says that despite the much challenging and volatile external environment at the end of the year, MOL Group generated USD 598 million Clean CCS (current cost of supply) EBITDA (earnings before interest taxes depreciation and amortization) in the fourth quarter, bringing full-year Clean CCS EBITDA to USD 2.44 billion, above the recently upgraded guidance. Simplified free cash flow declined compared to 2018 as the company is pushing forward with its strategic transformational projects but remained positive in 2019 at USD 356 million.
Chairman-CEO Zsolt Hernádi commented the result by saying that “we delivered robust financial results in 2019, even slightly ahead of our upgraded EBITDA guidance despite a weaker external environment. We also achieved important milestones along our 2030 transformation journey. We agreed to acquire major upstream assets in Azerbaijan, we have reached 50% completion at our flagship polyol project, while our Consumer Services business had another record-breaking year. With our strong foundations and despite increasing global uncertainties, we look forward to 2020 with optimism. With the help of the new assets, we expect to grow our EBITDA to around USD 2.5 billion, based on our mid-term base macro framework with a Brent crude price of around USD 60/barrel and assuming a more conservative petrochemical outlook. This shall again provide us enough cash flow to cover our investments into our strategic projects.”
An investor presentation by MOL Group, also published this Thursday, points out three strategic goals: (1) becoming a true consumer goods retailer (its current EBITDA on this field is USD 471 million); (2) digitalizing customer interactions and operations (with the target being digitalizing for more convenient and personalized offers) and (3) increasing its share in the consumers' spending for mobility services (MOL already has a car sharing service in Budapest with 450 vehicles and the aim is the gradual build-up of mobility services: EV chargers and fleet operations).
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