Mol’s Croatian Unit May Turn Profitable in 2011, Napi Reports

Mol Nyrt., Hungary’s largest refiner, hopes its Croatian subsidiary Ina Industrija Nafte d.d. will become profitable next year, Mol Chairman Zsolt Hernadi told the Napi Gazdasag newspaper.

“The strategic aim of Mol Group is to ensure an annual improvement of $210 million in Ina’s earnings before interest, appreciation and amortization between 2009 and 2012,” Hernadi said in an interview published today.

The Budapest-based company is in talks with the Croatian government on the takeover of Ina’s unprofitable gas business by the government, which has a contractual deadline of Dec. 1, Hernadi said. The two parties are seeking a solution whereby “Ina would retain the gas business with the condition that this doesn’t mean further losses for the company.”

Mol is ready to help the Hungarian and Russian governments to find a solution regarding the fate of a 21.2 percent Mol stake held by OAO Surgutneftegas, Hernadi said. “It would go against our interest to see this stake of more than 20 million shares suddenly hit the market,” he said.

To contact the reporter responsible for this story: Edith Balazs in Budapest at ebalazs1@bloomberg.net

To contact the editors responsible for this story: James Gomez at jagomez@bloomberg.net

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