MOL 1Q Profit Falls Less Than Expected

By Veronika Gulyas

BUDAPEST--Hungary's largest company, oil-and-gas firm MOL Nyrt. (MOL.BU) saw its unadjusted profit drop 25% in the first quarter versus a year ago, Thursday showed.

MAIN FACTS:

--MOL's first-quarter unadjusted net profit of HUF20.8 billion forints ($99 million) drop versus a net profit of HUF27.8 billion a year earlier.

-- MOL's profit drop was mainly due to lower contribution from central and eastern European gas fields, lower natural gas prices, while external conditions deteriorated in the firm's downstream segment.

--The profit drop was smaller than that expected by analysts, however, as MOL saw higher upstream production and operated in a more favorable foreign currency environment than previously expected.

--Capital expenditure, or Capex stood at HUF147 billion in 1Q. Altogether 65% of this covered acquisitions on the North Sea, while the firm spent HUF51 billion on organic projects.

-- Indebtedness ratios remained well below the comfort zone with a net gearing ratio at 18%, MOL said.

--"The first quarter of the year was made tough by the regulatory and macroeconomic environment," said Zsolt Hernadi, chief executive and chairman in the earnings report.

--MOL shares closed up 1.3% at HUF12,900 on the Budapest Stock Exchange.

Write to Veronika Gulyas at [e-mail]

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