Hungary’s MOL sees improved petchem EBITDA on better margins

14 May 2013 02:49  [Source: ICIS news]

LONDON (ICIS)--The petrochemicals division of Hungary's MOL achieved clean current cost of supplies-based (CCS-based) earnings before interest, tax, depreciation and amortisation (EBITDA) of forint (Ft) 3.4bn ($15.0m) in the first quarter of this year, driven by a notable improvement in margins, the company said on Tuesday.

The figure compares with a restated loss of Ft 5.4bn on the clean CCS-based EBITDA line in the first quarter of 2012, the oil, gas and petrochemicals group added.

The company saw its Q1 petrochemical product sales volumes rise by 7% year on year to 352,000 tonnes from 328,000 tonnes, although polymer sales volumes fell by 2% to 231,000 tonnes from 236,000 tonnes.

Overall, MOL saw “very poor demand for petrochemical products” during the first quarter, the company said in a commentary on its latest financial results.

MOL's integrated petrochemical margin in the first quarter of this year was €312/tonne ($405/tonne), compared to €173/tonne in the first quarter of 2012 and €295/tonne in the fourth quarter of last year.

In April, the margin climbed to €354/tonne, MOL added.

Looking ahead, the company said that the “naphtha quotation development will be critical to petrochemical margins as the current level is significantly supported by a declining naphtha crack spread”.

MOL saw its Q1 net profit fall by 56% year on year to Ft32.3bn from a restated Ft73.9bn, with net sales revenues edging down by 4% to Ft1.29 trillion from a restated Ft1.35 trillion.

Pressure on motor fuel demand and the lack of production at MOL's oil assets in civil war-torn Syria were two of the main reasons for the deterioration in the results, the company said.

($1 = Ft227.13, $1 = €0.77)

By: Will Conroy
+44 20 8652 3214

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