MOL Net Profit Declines in Second Quarter on Upstream Segment

 By Veronika Gulyas 
 

BUDAPEST--Hungary's market leading oil and gas company MOL Nyrt. (MGYOY, MOL.BU) suffered a decline in net profit in the second quarter versus the previous three-month period, the company's earnings report published Wednesday said. This was due mainly to lower crude oil prices and decreasing hydrocarbon production having hit the company's upstream operations, its most profitable segment.

MAIN FACTS:

-MOL's second-quarter net profit dropped to 20 billion forints ($88 million) versus HUF32.2 billion a quarter earlier.

-Profit rose significantly versus a year ago; second-quarter net income was HUF498 million in 2Q 2012.

-EBITDA, or earnings before interest, taxes, depreciation and amortization, came in at HUF112 billion, down 21% versus the previous quarter as seasonally stronger demand and sales in downstream was weakened by deteriorating external conditions such as lower motor fuel crack spreads and shrinking Brent‐Ural spread and unplanned shutdowns.

-MOL expects the quarterly loss to be offset in the longer term thanks to its Kurdistani operations in Iraq where it reached a milestone this quarter, Zsolt Hernadi, chief executive and chairman, said in the report.

-MOL finished trading down 0.9% or HUF150 at HUF16,300.

Write to Veronika Gulyas at [e-mail]

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