THIRD QUARTER 2022 RESULTS
4 NOVEMBER2022
DISCLAIMER
"THIS PRESENTATION AND THE ASSOCIATED SLIDES AND DISCUSSION CONTAIN FORWARD-LOOKING STATEMENTS. THESE STATEMENTS ARE NATURALLY SUBJECT TO UNCERTAINTY AND CHANGES IN CIRCUMSTANCES. THOSE FORWARD-LOOKING STATEMENTS MAY INCLUDE, BUT ARE NOT LIMITED TO, THOSE REGARDING CAPITAL EMPLOYED, CAPITAL EXPENDITURE, CASH FLOWS, COSTS, SAVINGS, DEBT, DEMAND, DEPRECIATION, DISPOSALS, DIVIDENDS, EARNINGS, EFFICIENCY, GEARING, GROWTH, IMPROVEMENTS, INVESTMENTS, MARGINS, PERFORMANCE, PRICES, PRODUCTION, PRODUCTIVITY, PROFITS, RESERVES, RETURNS, SALES, SHARE BUY BACKS, SPECIAL AND EXCEPTIONAL ITEMS, STRATEGY, SYNERGIES, TAX RATES, TRENDS, VALUE, VOLUMES, AND THE EFFECTS OF MOL MERGER AND ACQUISITION ACTIVITIES. THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER FACTORS, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE RISKS, UNCERTAINTIES AND OTHER FACTORS INCLUDE, BUT ARE NOT LIMITED TO DEVELOPMENTS IN GOVERNMENT REGULATIONS, FOREIGN EXCHANGE RATES, CRUDE OIL AND GAS PRICES, CRACK SPREADS, POLITICAL STABILITY, ECONOMIC GROWTH AND THE COMPLETION OF ON-GOING TRANSACTIONS. MANY OF THESE FACTORS ARE BEYOND THE COMPANY'S ABILITY TO CONTROL OR PREDICT. GIVEN THESE AND OTHER UNCERTAINTIES, YOU ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON ANY OF THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN OR OTHERWISE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO RELEASE PUBLICLY ANY REVISIONS TO THESE FORWARD-LOOKING STATEMENTS (WHICH SPEAK ONLY AS OF THE DATE HEREOF) TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE HEREOF OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS, EXCEPT AS MAYBE REQUIRED UNDER APPLICABLE SECURITIES LAWS.
STATEMENTS AND DATA CONTAINED IN THIS PRESENTATION AND THE ASSOCIATED SLIDES AND DISCUSSIONS, WHICH RELATE TO THE PERFORMANCE OF MOL IN THIS AND FUTURE YEARS, REPRESENT PLANS, TARGETS OR PROJECTIONS."
2
HIGHLIGHTS
OF THE QUARTER
Q1-Q3 2022: FINANCIAL PERFORMANCE AFFECTED BY FUEL PRICE
REGULATION AND WINDFALL TAXES
2021 | Q1-Q3 2022 | |
RESULTS5 | RESULTS4 | |
GROUP CLEAN CCS | USD 3.53 BN | USD 3.63 BN |
EBITDA | ||
GROUP CAPEX | USD 1.54 BN | USD 962 MN |
(ORGANIC) | ||
SIMPLIFIED FCF1 | USD 1.98 BN | USD 2.67 BN |
OPERATING CF | USD 3.04 BN | USD 1.98 BN |
(AFTER WC) | ||
2022
GUIDANCE
USD 4.1-4.4 BN
UP TO USD 1.7 BN
ABOVE 2.4 BN
ABOVE USD 1.7 BN6
OIL & GAS | 110 MBOEPD | 92 MBOEPD | Above 90 MBOEPD |
PRODUCTION2 | |||
NET DEBT/EBITDA4 | 0.6X | 0.4X | <1.0X |
HSE - TRIR3 | 1.3 | 1.4 | <1.3 |
4
1 Clean CCS EBITDA less Organic capex | 4 Represented for continuing operations, i.e. excluding UK |
2 Including JVs and associates | 5 Including discontinued operations, i.e. UK |
3 Total Recordable Injury Rate | 6 Assuming no changes in working capital |
USD 3.6BN YTD EBITDA DELIVERY DESPITE REGULATORY HEADWINDS
SUPPORTED MAINLY BY UPSTREAM AND REFINING CONTRIBUTION
FINANCIALS
Clean CCS EBITDA of continuing operations amounted to USD 1,449mn in Q3 2022 and USD 3,627mn in Q1-Q3 2022, however a USD 2.0bn working capital build weighted on CF generation; accordingly operating CF generation after working capital stood at 1,977mn in Q1-Q3 2022
The estimated impact of fuel price regulation and windfall taxes across the CEE amounted to approximately USD 1,180mn in Q1-Q3 2022, potential introduction of the EU's solidarity contribution by individual member states may have further negative impact on MOL's profitability
Downstream CCS EBITDA came in at USD 741mn in Q3 2022 YoY as diminishing Petchem contribution was offset by higher R&M EBITDA generation
Consumer Services EBITDA remained under pressure and reached USD 121mn in Q3 2022 mainly due to fuel price regulation in various CEE countries
Upstream Clean EBITDA grew to USD 640mn however the extra royalty levied upon production had significant negative impact on the results in Q3 2022
Net debt to EBITDA improved further and stood at 0.41x despite the payout of the annual dividend and a working capital build
OPERATIONAL AND OTHER DEVELOPMENTS
(Ex-UK) oil and gas production averaged at 90.5 mboepd in Q3 2022 above the annual guidance of 90+ mboepd
Motor fuel demand decelerated in the CEE, consumption fell in Hungary and in Slovakia by 2% and 3% respectively
The planned major maintenance of the Százhalombatta refinery was successfully completed in the Q3 period
The Federal Supreme Court of Switzerland dismissed Croatia's revision request of the UNCITRAL award, that was originally issued in the arbitration proceeding initiated by Croatia against MOL in 2016
In relation to the fraudulent gas deals concluded in Croatia INA decided to undertake a series of personal, corrective, and preventive actions. Furthermore, INA will undertake all necessary activities to initiate proceedings with the aim of recovering financial resources. INA also requested an external audit of internal processes, decision-making principles, and gas sales and purchase contracts, all for the purpose of improvement and
transparency of business processes. | 5 |
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MOL plc published this content on 03 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2022 23:05:04 UTC.