MOL Plans 2013 Capital Expenditure at $983 Million

By Veronika Gulyas

BUDAPEST--Hungarian energy group MOL Nyrt. (MOL.BU, MGYOY) plans this year's capital expenditure at $983 million compared with $622 million last year, the company said in its drilling update Tuesday.

MOL published its 2012 fourth quarter and annual earnings late Monday.

The energy firm expects to see production drop slightly this year to 110,000 barrels per day from 115,000 barrels per day last year.

MOL continues to focus its exploration activity in the Kurdistan region of Iraq and Kazakhstan. The company said it also plans to diversify its portfolio in Russia, increase oil production in Pakistan and maximize recovery rates in Hungary, Romania and Croatia.

MOL reported a fall in its so-called proven plus probable, or 2P reserves, in 2012 to 647 million barrel equivalent from 682 million a year earlier.

KBC Securities analyst Peter Csaszar said this was a negative surprise, adding that the production guidance at 110,000 barrels per day for 2013 is in line with his estimate.

MOL's management will hold a press briefing on the 2012 results and the 2013 guidance at 1100 GMT.

Write to Veronika Gulyas at [e-mail]

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