MOL Group today announced its financial results for the first quarter of 2023, in which it achieved a net CCS EBITDA of 714 million dollars, despite an unfavorable regulatory environment and declining oil and gas prices. The strong figures are a result of solid internal results across all departments: the Customer Services segment recovered after low results last year, production volumes in the Oil and Gas Exploration and Production segment increased, and the refining business remains profitable in the Refining and Marketing segment.
MOL generated a simplified free cash flow of over 500 million dollars in the first quarter of 2023, which is nearly equal to the previous quarter and the same quarter last year, with all segments contributing equally to the result.
– MOL Group achieved stable results in the first quarter of 2023, considering that the normalization of macroeconomic conditions was largely mitigated by good internal results across segments. Our company has made significant strides in supporting the energy sovereignty of the region. The Oil and Gas Exploration and Production segment managed to increase domestic production volumes, we started delivering our own crude oil from Azerbaijan to Europe, and we continued investments that enabled our refineries on the continent to access crude oil from various sources. Additionally, the Customer Services segment emerged even stronger from last year’s crisis and began operations in Poland – emphasized Zsolt Hernádi, Chairman and CEO of MOL, during the announcement of the results.
A year after the start of the war in Ukraine, it is clear that the economic consequences are long-term and will change the conditions on the European energy scene.
– Despite the negative impact of unfavorable regulatory conditions, our integrated and resilient business model has proven successful in this very challenging environment, allowing us not only to continue diversifying our business but also to proceed with our transformational projects – announced Hernádi.
In a more detailed analysis of MOL’s financial indicators, it is noted that the net CCS EBITDA of the Refining and Marketing segment increased by 18 percent compared to the same quarter last year, reaching 299 million dollars. The margin in the petrochemical sector remains under pressure, but the results of Refining and Marketing managed to offset negative factors, despite the windfall tax in Hungary. Demand for motor fuels in Hungary decreased by 14 percent in the first quarter compared to the same period last year, as the fuel price cap in the first quarter of 2022 increased consumption, while demand slightly increased in Slovakia (+3 percent) and Croatia (+1 percent). In March, a key goal was achieved in efforts aimed at diversifying crude oil. Specifically, MOL Group delivered Azeri light crude oil from the ACG field in Azerbaijan, of which it is a co-owner, to the Slovnaft refinery in Bratislava, achieving additional flexibility in crude oil procurement.
