The MOL Group recorded, in the first half of this year (S1), a pre-tax profit of 916 million dollars, up 19% compared to the previous year, according to a company statement.
In the second quarter, the profit was 534 million dollars, mentions the source cited by Agerpres.
The oil company shows that both the Downstream and Upstream segments have generated solid and stable financial results due to constant demand in the refining sector and slightly rising hydrocarbon prices. In addition, the performance of the Consumer Services segment was supported by fuel sales volumes and non-fuel margin consolidation.
“Our company faces multiple challenges. First, we need to ensure long-term security of supply in the region. We work continuously to ensure all transportation options and to maximize the diversity of petroleum feedstocks and flexibility at the level of our refineries. Secondly, we continue to implement our transformation strategy, relying exclusively on our own resources, because these diversification and transformation programs do not benefit from community funding. Thirdly, we remain committed to our long-term strategy to create added value and provide returns to our shareholders,” said Zsolt Hernadi, chairman and CEO of the company.
In the Upstream segment, the volume of oil and gas production remained above estimates, totaling 92.1 million barrels of oil equivalent per day in Q2 2024, due to increased international production in KRI Shaikan and Kazakhstan, also supported by increased production in Hungary and Croatia from one quarter to another. Unitary operating costs (OPEX) at group level remained stable from one quarter to another, at 5.8 dollars/oil equivalent barrel, due to strict cost control measures and the favorable evolution of energy prices.
Downstream results were supported by robust demand, while refining margin growth offset the negative effects of the narrowing of the spread between Brent and Ural oil prices. The margin in the petrochemical sector increased slightly from one quarter to another, in line with the decrease in energy prices.
In the Consumer Services segment, the higher volume of fuel sales and the improvement in the margin from the sale of non-fuel products were the main factors that contributed to the increase in results, offsetting the effect of the decrease in unit margins for fuels. The profits obtained from the sale of some fuel stations also had a positive impact, the Hungarian company believes.
Circular Economy Services recorded negative profit results driven by the conservative approach to recording costs related to the Guarantee-Return System (DRS in Hungary) with expanding operations during the quarter and the inclusion for the first time of the consolidated results of JV MOHU Budapest. The DRS system has been in operation since January 1, with approximately 3,100 automatic collection machines installed and available in retail networks. From July 1, the DRS system began to operate at the national level and approximately 3 million beverage packages are put back into circulation every day through it.
The performances of the Gas Midstream sector were influenced by the combined effect of more favorable weather conditions, the change in demand for regional transport services and unfavorable fluctuations in the exchange rate, explains the MOL Group.