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How did Mol perform in the first quarter?

In the first quarter of 2013, MOL Group achieved a net CCS (result adjusted for changes in the price of input raw materials in such a way that these costs are calculated at a uniform price at the end of the reporting period) EBITDA result (excluding one-off items and replacement costs) of 630 million dollars, representing a 2 percent increase year-on-year.

The key impact on results by segments was the reduction in hydrocarbon production and the average realized price of hydrocarbons in the oil and gas exploration and production segment. The impact of these factors was partially mitigated by increased hydrocarbon sales in Croatia, which can be attributed to the sale of all previously accumulated quantities, a lower result from the domestic gas transportation department due to milder weather conditions, and lower tariffs in the gas transportation segment, which were more than neutralized by improved results in the refining and marketing segment, supported by better refining margins for gasoline and integrated petrochemical margins, resulting in improved product yield, as well as efforts to enhance efficiency. The EBITDA of MOL Group excluding one-off items amounted to 594 million USD. The Group generated cash flow from operating activities of 255 million dollars in the first quarter compared to last year’s net cash outflow of 46.3 million USD. The net debt-to-equity ratio remained at the same level of 25.0% as of March 31, 2013.

MOL’s CEO Zsolt HernĂ¡di, commenting on the results, said: -As we expected, 2013 has so far proven to be a challenging year. The main external challenges we face continue to be slow economic growth, persistent pressures on demand for motor fuels, and an inflexible regulatory environment, but we also feel the absence of production in Syria, which has led to a noticeable reduction in production in our portfolio.
In order to compensate for these negative effects, we have set the following main goals for this year: to stop the decline in production in our existing portfolio in the oil and gas exploration and production segment and to continue to reduce the risk of hydrocarbon potential in our exploration blocks with a clear goal of increasing reserves in the short term and ensuring production growth in the medium term. We will continue to implement a new program in the refining and marketing segment, and the plan is, after last year’s improvement of 150 million USD, to enhance efficiency by a further 250 million USD. We will strive to maintain financial stability; however, with sufficient corporate financial flexibility, we are able to carry out acquisitions and renew our asset base both in the exploration and production segment and in the refining and retail segment, where there are opportunities to create significant additional value for our portfolio.-