The Hungarian oil and gas group MOL reported on Wednesday that its net profit in the third quarter nearly doubled compared to the same period last year, primarily due to strong results in the refining segment.
MOL’s net profit for the period from July to September amounted to 67.5 billion forints (299 million dollars), which is 86 percent higher than in the same period last year. The operating profit excluding one-off items during this period was 117.2 billion forints, compared to 64.5 billion forints in the third quarter of 2011.
– Improved profitability can largely be attributed to better results in the refining and sales segment, stemming from better product margins, higher sales volumes, and inventory gains – stated MOL in today’s press release.
Thus, in the refining and sales segment, supported by inventory gains and higher refinery production, an operating profit excluding one-off items of 54.3 billion forints was recorded, while in the same period of the previous year a loss of 17 billion forints was noted. MOL must revalue its inventories every quarter, and the positive contribution to revaluation in the third quarter was provided by higher oil prices.
Sales of motor fuels in MOL’s main markets in Central and Eastern Europe simultaneously decreased due to deteriorating economic forecasts and high prices. In that region, sales of motor fuels fell by 2.8 percent compared to the same period last year, with Hungary alone seeing a decrease of 7.9 percent. The operating profit excluding one-off items decreased in the exploration and production segment by eight percent, to 74.8 billion forints, as weaker sales of crude oil and condensate in Croatia, partly due to the closed refinery in Sisak, could not be fully compensated by higher Hungarian gas production.
