MOL Group Demonstrates Resilience with Strong Financial Performance in H1 2024 Amid Industry Challenges

(IN BRIEF) MOL Group reported strong financial results for the first half of 2024, with a 19% year-on-year increase in profit before tax, driven by robust demand in Downstream, strong Upstream production, and retail expansion. Despite industry challenges, the company maintained stable operations, achieved key milestones in its Tiszaújváros operations, and expanded its Fresh Corner network. However, the Circular Economy Services division faced losses due to the rollout of the Deposit Refund System. Chairman-CEO Zsolt Hernádi highlighted the company’s resilience in maintaining stable performance amid external pressures and market volatility.

(PRESS RELEASE) BUDAPEST, 10-Aug-2024— /EuropaWire/ — MOL Group has reported solid financial results for the first half of 2024, achieving a profit before tax of USD 916 million, a 19% increase compared to the same period last year, with USD 534 million earned in Q2 alone. This performance was driven by robust demand in the Downstream segment, strong production in Upstream, and continued retail expansion.

Despite challenging market conditions, MOL Group’s Upstream production remained above the company’s guidance, averaging 92.1 mboepd in Q2, thanks to increased production in key international regions like the Kurdistan Region of Iraq (KRI) and Kazakhstan, as well as improved output in Hungary and Croatia. The company maintained strict cost control, keeping Group unit OPEX stable.

In the Downstream segment, strong refining demand and increased margins offset the negative impact of a reduced Brent-Ural spread. MOL also marked significant milestones in its Tiszaújváros operations, including the inauguration of a €1.3 billion polyol complex and the commencement of a chemical recycling unit design.

Consumer Services showed positive results, driven by higher fuel sales volumes and improved non-fuel margins, which now account for 37.5% of the total margin. The Fresh Corner network expanded to 1,270 locations, reflecting growth in gastro and grocery sales.

However, the Circular Economy Services division reported a negative profit due to conservative cost accruals associated with the rollout of the Deposit Refund System (DRS). The DRS, operational since January, has seen significant activity, with around 3 million beverage packages returned daily through the system’s 3,100 Reverse Vending Machines.

Chairman-CEO Zsolt Hernádi acknowledged the pressures facing the company, including the need to secure regional supply and maximize refinery flexibility while navigating government regulations and external challenges. Despite these hurdles, MOL Group continues to deliver stable performance, demonstrating the strength and resilience of its operations and workforce.

Gas Midstream’s performance was impacted by milder weather, fluctuating demand, and unfavorable currency exchange rates.

Overall, MOL Group’s results underscore its ability to maintain reliable financial performance and pursue strategic goals in a volatile market environment.

About MOL Group

MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemical plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of almost 2400 service stations across 10 countries in Central & South-Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 8 countries and exploration assets in 10 countries.

MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central and Eastern Europe.

Media Contact:

Phone: +36 1 209 0000
email: @: internationalpress@mol.hu

SOURCE: MOL Group

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