BUDAPEST--Hungary's oil and gas company MOL Nyrt. (MOL.BU)
booked an unadjusted net loss in the third quarter as a result of
restructuring its Italian refiner into a logistics hub. When
adjusted for one-off items including the restructuring, its bottom
line posted a net profit that exceeded analysts expectations, the
company's earnings report published Friday showed.
MAIN FACTS:
- MOL's third-quarter unadjusted net loss totaled 30.0 billion
forints ($134.8 million) versus a net profit of HUF67.6 billion a
year earlier.
- Restructuring MOL's refinery in Mantova, Italy into a
logistics hub resulted in a HUF123-billion non‐cash one‐off
impairment charge driving the bottom line into the red.
- Adjusted net profit totaled HUF43.1 billion, significantly
exceeding analysts' forecast in a poll by portfolio.hu for HUF32.6
billion, and was down from a net profit of HUF77.7 billion a year
earlier.
- Upstream benefited from higher average realized hydrocarbon
prices in the quarter after weaker results in the previous quarter,
which were negatively affected by write‐downs in Egypt.
Significantly beating industry trends, the Downstream segment
improved its performance, reaching one of the best quarterly result
of the last three years, MOL said. "This is a particularly good
result in light of the further worsening product margins and a
practically diminished Brent‐Ural spread," MOL added.
- Adjusted Ebitda, or earnings before interest, taxes,
depreciation and amortization, which analysts watch closely to
gauge efficiency, came in at HUF137.7 billion, down 8% from a year
earlier and but higher than the HUF117.25 billion analysts had
forecast. Operating cash flow fell 67% to HUF68 billion, partly as
a result of higher working capital needs due to the higher crude
oil price environment.
- MOL, which is mulling the sale of its Croatian oil and gas
company INA (INA.ZG) as a result of a spat with INA's fellow major
owner the Croatian government, has a "strong balance sheet
position, which ensures wide (elbow) room for potential inorganic
steps," Zsolt Hernadi, chief executive and chairman, said in the
earnings report. "We are focusing on a more active portfolio
management approach, especially in Upstream, to create near‐term
growth potential," Mr. Hernadi added.
- MOL shares closed Thursday up 0.8% at HUF14,470 on the
Budapest Stock Exchange.
Write to Margit Feher at margit.feher@wsj.com
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