The MOL Group released third quarter results

Upstream delivered HUF 49.1bn (USD 188mn) EBITDA in Q3 with average daily production reaching 105,000 barrels of oil equivalent. Over the first nine months Upstream EBITDA grew by more than 30% compared to Q1-Q3 2016. The segment continued to generate strong free cash flows in 2017, USD 15 on average on each barrel produced. This was achieved at average Brent prices of USD 52 per barrel.

Downstream posted lower clean CCS EBITDA at HUF 70.5bn (USD 271mn) as both petrochemicals and refining contribution declined due to lower wholesale margins, lower own produced product sales and one offs. Downstream’s contribution for the first nine months remained flat at HUF 256.9bn (USD 923mn).

Consumer Services continued its impressive growth with its best ever quarterly results at HUF 34.5bn (USD 132mn) EBITDA, up from USD 112mn one year ago, as both fuel and non-fuel earnings continue to grow.

MOL Group has also launched its new Downstream program, DS2022, a major milestone in the implementation of the MOL 2030 strategy. The program is based on three pillars: strategic transformational projects; efficiency initiatives; and increasing customer satisfaction, safety and employee engagement in order to become the best choice of employees, customers and investors in line with the vision of MOL Group 2030 strategy. The program once again aims to deliver USD 500mn EBITDA improvement similarly to its predecessors the New Downstream Program (2012-2014) and the Next Downstream Program (2015-2017).

Chairman-CEO Zsolt Hernádi commented the results: “After the first nine months of the year we are well on track to deliver on our upgraded USD 2.3bn Clean CCS EBITDA guidance and on our MOL 2030 strategy. We continue to generate robust free cash flows this year despite not fully capturing the opportunities of the supportive external environment in Q3. To achieve our strategic objectives we are now also launching Downstream 2022 (DS2022), a program of efficiency, transformation and growth, which would deliver USD 500mn additional EBITDA with substantial, over USD 2bn investments by 2022. The flagship transformational project of this program, the polyol project, is forging ahead as we have secured all the technological licenses and engineering resources.”