The Mol Group recorded a pre-tax profit of 382 million dollars in the first quarter, down 29% compared to the same period last year, according to a statement.
According to the cited source, the group’s results were influenced by government taxes, the changes in the Downstream segment, the unfavorable effects generated by the lower price of gas in the Upstream segment, but also by the favorable evolution of non-fuel dynamics in the Consumer Services segment.
“While we have managed the challenges generated by the external environment, we have had the ability to generate solid results. Our stability is key to strengthening the security of the supply flow in Central and Eastern Europe and making strategic investments, as is the complex of polyols that we will soon inaugurate following an investment of 1.3 billion euros. In March we presented an ambitious investment agenda that is part of our updated strategy that aims to increase the competitiveness of Mol industry in CEE. Despite the pressure generated by government policies on our performance, we maintain our commitment to continue our energy transition journey and increase our energy sovereignty in the future,” said Zsolt Hernadi, Chairman and CEO of the Mol Group.
According to the quoted source, the results in the Downstream segment were supported both by the margins in the petrochemical sector and by those in refining, but lower sales from own production influenced the performance.
“Additional government measures in Hungary continue to have an impact on the results, with the revenue-based tax, the Brent Ural tax and the CO2 tax significantly influencing the quarterly results,” the press release added, according to Agerpres.
At the same time, the Consumer Services segment recorded a continuous improvement in the margin from the sale of non-fuel products (gastro products, food and non-food products). Also, the gain from the sale of some gas stations contributed to the results of the first quarter.
“Despite the fact that the size of the station network in Hungary decreased due to previous acquisition agreements, fuel sales volume increased by 6% year-on-year, while fuel unit margin decreased by 2% from year by year,” the press release states.
Group-wide cost of production was flat year-on-year despite general inflationary pressures due to lower electricity prices, higher production and a shift to lower cost assets.
“Circular economy services were affected by the realization of lower revenues than those estimated following the application of extended producer responsibility (EPR). The guarantee-return system (DRS in Hungary) has been in operation since January 1, with approximately 2,400 automatic collection devices installed and available in retail points on the territory of Hungary. The performance of the Gas Midstream sector was marked by the combined effect of a favorable macroeconomic environment and the change in demand for regional transport services,” claim the group’s representatives.
The Mol Group is an international integrated oil, natural gas, petrochemical and retail company, headquartered in Budapest, Hungary. It has operations in over 30 countries, a dynamic workforce of 24,000 employees worldwide and over 100 years of industry experience.