MOL Profits Soar, Gas Throughputs Up

Hungarian producer MOL’s net profit in full year 2017 of $1.1bn was the firm’s highest in a decade.

The result was 18% higher year on year, while pre-tax profit increased by 14% to reach $2.45bn, said MOL February 20. All business segments performed better compared to 2016.

MOL’s midstream gas pre-tax earnings (Ebitda) increased by 15% to reach $223mn, strongly backed by surging domestic transmission volumes (+22% in both 4Q and in full year 2017, year on year) that more than offset adverse tariff changes.

Upstream delivered $854mn pre-tax earnings, up 26% compared to 2016 due to higher Brent and gas prices. Average 2017 production of 107,400 barrels oil equivalent was slightly below MOL’s guidance for that year, because of lower UK contribution.

CEO Zsolt Hernadi said that MOL is expecting to deliver around $2.2bn pre-tax earnings in 2018, which would enable the company to fund transformational projects set out in its Mol 2030 strategy.

The Hungarian government, which owns a quarter of Mol’s shares, said in 4Q2017 it was willing to negotiate a deal with Croatia to sell back the stake which Mol owns in Croatian producer/refiner INA. However as yet, no such deal has been concluded.