MOL on the Sisak Refinery: We Will Make the Most Rational Decision

MOL Group spokesperson Gyöngyi Janky stated today that MOL must analyze the long-term sustainability of its refining operations concerning facilities whose financial stability is at risk, and that for the Sisak Oil Refinery, MOL, as a responsible shareholder of INA, will strive to make the most rational business decision in the interest of all stakeholders.

Earlier today, Hungarian MOL announced that it is closing its refinery in the Italian city of Mantova and that starting next year, it will begin transforming that refinery into a center for supplying finished products.

As a result of the unfavorable economic environment faced by the refining business in Italy and after a comprehensive analysis of the long-term sustainability of the Mantova refinery’s operations, MOL will convert it into a logistics product center, MOL stated in a press release.

In light of the announcement regarding the closure of the Mantova refinery and its transformation, MOL Group spokesperson Gyöngyi Janky emphasized in a statement that for many years, the European refining sector has been increasingly endangered, suffering from a combination of a weak economic environment and reduced demand, caused by rising oil prices due to increased raw material and operational costs.

European refineries are therefore, says Janky, squeezed between rising crude oil prices and reduced consumption, and as a consequence, 15 refineries have closed since the onset of the economic crisis in 2008, while most of those that remain active are continuously reducing their capacity.

For MOL, this means that it must analyze the long-term sustainability of its refining operations concerning those facilities whose financial stability is at risk or is already unstable, Janky emphasizes.

 - Speaking specifically about the Sisak Oil Refinery, as a responsible shareholder of INA, we will strive to make the most rational business decision that will be in the interest of all stakeholders – concludes Janky in the statement.