Mol Results Soar as Refining Helps Offset Oil Price Hit

  • Adjusted Ebitda rises to record level in third quarter
  • Shares jump to highest in almost 2 months after earnings

Hungarian energy group Mol Nyrt. reported record third-quarter earnings as the performance of its refining and marketing unit helped outweigh the impact of low oil prices and a decline in production.

Net income jumped to 91.3 billion forint ($316 million) from 28.5 billion forint in the same period of 2014,  the company said in a regulatory statement Friday. Earnings before interest, taxes, depreciation and amortization on a clean-current cost of supplies basis rose 21 percent from a year earlier to 198.7 billion forint, the best ever result. The downstream segment contributed about three-quarters of that measure, the most closely watched for the group.

“We are more than confident of reaching our $2.2 billion Ebitda target set for this year,” Chairman Zsolt Hernadi said in the statement.

The shares jumped as much as 2.1 percent and were trading 1.7 percent higher at 13,525 forint by 11:10 a.m. in Budapest, the strongest since Sept. 10. Mol has advanced 17.2 percent this year compared with a 34 percent rise in the benchmark BUX stock index.

While results of Mol’s exploration and production segment “somewhat disappointed” compared with the “outstanding” downstream earnings, the report will probably still cause a positive reaction in the stock, analysts at KBC Groep NV’s brokerage in Budapest said in an e-mailed report.

“The company’s cash generation can still be said to be excellent,” analysts at KBC said.

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