Mol Declines on Hungary Energy Price Cut Report: Budapest MoverAndras Gergely
Mol Nyrt., Hungary’s largest refiner, fell after Magyar Hirlap reported that the government plans to impose further price cuts on energy suppliers.
The shares dropped as much as 1.4 percent and traded 0.6 percent lower at 17,800 forint by 12:28 p.m. in Budapest. The benchmark BUX stock index, in which Mol has the biggest weighting at 33 percent, slid less than 0.1 percent.
The Cabinet, which is forcing suppliers to cut household prices by 10 percent from this month, plans two further rounds of reductions for heating, natural gas and electricity starting in March or April, Magyar Hirlap said. The government wants to cut profit margins for gas and electricity distributors to allow utility prices to fall, Prime Minister Viktor Orban said in an interview with state-run MR1 radio on Nov. 30.
A 10 percent cut in Mol’s gas prices may hit operating profit by as much as 5 percent, Jozsef Miro, a Budapest-based analyst at Erste Group Bank AG, wrote in a research report.
The Development Ministry declined to comment in an e-mailed response to questions from Bloomberg News on the Magyar Hirlap report.