Hungary's MOL Q4 petchem loss doubles to Ft8.1bn year on year

24 February 2012 01:33  [Source: ICIS news]

LONDON (ICIS)--The operating loss of MOL's petrochemical division worsened to forint (Ft) 8.1bn ($37m, €28m) in the fourth quarter of 2011 with its integrated petrochemical margin hitting a new historical low, the Hungarian group said on Friday.

The loss compared to operating losses of Ft4.1bn in the same quarter a year ago and Ft6bn in the preceding quarter, it added.

The integrated petrochemical margin eroded to €177/tonne ($236/tonne) in the fourth quarter from €213/tonne in the third quarter and contrasted with the €272/tonne recorded in the final quarter of 2010.

MOL gave no figures for petrochemical sales revenues, but said its fourth-quarter petrochemical sales volume fell to 360,000 tonnes from 367,000 tonnes a year ago.

During the fourth quarter, market demand for refined products and petrochemical items remained depressed, especially in countries of southeastern Europe, MOL noted.

MOL, also an oil and gas company, suffered an overall fourth-quarter net loss of Ft31bn, compared to a net profit of Ft36.1bn a year ago, with net sales revenues were up 26% to Ft1.49 trillion.

“Downstream [which includes MOL's petrochemical business] delivered weak performance,” said MOL CEO Zsolt Hernadi.

“However, we are expecting improvement and are planning some selected investments as we did in the past. Our financial position improved further over 2011 ensuring a solid basis for our organic growth plans, moreover, we are continuously evaluating potential inorganic steps as well.”

On 22 February, MOL said it was pushing ahead with a butadiene plant investment.

($1 = €0.75 / $1 = 216.55Ft / €1 = 289.69Ft)

By: Will Conroy
+44 20 8652 3214

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