Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Mol Banks on Iraq to Turn Production Drop as Downstream Improves

Don't Miss Out —
Follow us on:

Aug. 13 (Bloomberg) -- Mol Nyrt., Hungary’s largest refiner, reported an improvement in its downstream unit in the second quarter and said it was closer to production at an Iraqi field that will help arrest the decline upstream.

Mol posted net income of 20 billion forint ($89 million) in the three months to June, compared with 500 million forint a year earlier and a 24.3 billion forint median estimate in a Bloomberg survey. The downstream unit had earnings before interest, taxes, depreciation and amortization of 42 billion forint on a current cost of supplies basis, 1 billion forint higher than in the first quarter of 2013, Mol said in a statement to the Budapest Stock Exchange today.

Production at the Shaikan field in the Kurdistan region of Iraq is “within closer reach” after approval from the local government, which will help offset the decline of matured fields elsewhere, Mol said. The company, which saw gas production fall in Croatia and Hungary, yesterday announced the sale of a stake in a mature field in Russia.

“This time, upstream was the weakest link in a declining crude-oil price environment and hit by a significant drop of gas production in Hungary,” Peter Szentirmai, a Budapest-based analyst at KBC Groep NV, wrote in an e-mailed report. “On the positive side, downstream operation shows the signs of improvements despite gloomy refining macro environment.”

The shares rose as much as 1.8 percent and traded 0.1 percent lower at 16,290 forint by 11:10 a.m. in Budapest, extending the drop this month to 3.6 percent. The benchmark BUX stock index, in which Mol has the highest weighting at 31 percent, slid 0.1 percent, paring the advance in August to 0.7 percent.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.