MOL GROUP
2022 HALF-YEAR REPORT
1
2022 HALF-YEAR REPORT OF MOL GROUP
Introduction
General information
MOL Hungarian Oil and Gas Plc. (Reuters: MOLB.BU, MOLBq.L, Bloomberg: MOL HB, MOL LI; website: www.molgroup.info), today announced its 2022 half-year report. This report contains consolidated, unaudited financial statements for the six months period ended 30 June 2022 as prepared by the management in accordance with International Financial Reporting Standards.
Contents
2022 HALF-YEAR REPORT OF MOL GROUP | 1 |
Management Discussion and Analysis | 2 |
MOL Group Financial Results | 2 |
Upstream | 5 |
Downstream | 10 |
Consumer Services | 13 |
Gas Midstream | 14 |
Non-financial Overview | 15 |
Integrated Corporate Risk Management | 16 |
Outlook on Strategic Horizon | 18 |
Interim Condensed Consolidated Financial Statements | |
for the six months ended 30 June 2022 | 19 |
Appendices | 47 |
2
MANAGEMENT DISCUSSION AND ANALYSIS
MOL Group Financial Results
Q1 2022 | Q2 2022 | Q2 2021 | YoY | (IFRS), in HUF billion* | H1 2022 | H1 2021 | Ch % | ||||
Ch % | |||||||||||
1,933.4 | 2,491.0 | 1,412.6 | 76 | Net sales revenues (8) | 4,424.4 | 2,494.8 | 77 | ||||
292.2 | 473.1 | 255.3 | 85 | EBITDA | 765.3 | 470.7 | 63 | ||||
292.2 | 473.1 | 255.3 | 85 | EBITDA excl. special items(1) | 765.3 | 470.7 | 63 | ||||
271.7 | 483.7 | 246.8 | 96 | Clean CCS-based EBITDA (1) (2) (10) | 755.4 | 428.7 | 76 | ||||
229.7 | 365.9 | 140.6 | 160 | Profit from operation | 595.6 | 242.1 | 146 | ||||
188.2 | 362.2 | 140.6 | 158 | Profit from operation excl. special items(1) | 550.4 | 242.1 | 127 | ||||
167.7 | 372.8 | 132.1 | 182 | Clean CCS-based operating profit (1) (2) (10) | 540.5 | 200.1 | 170 | ||||
1.2 | (24.1) | 24.9 | n.a. | Net financial gain / (expenses) | (22.9) | 16.2 | n.a. | ||||
138.8 | 249.5 | 178.2 | 40 | Net profit attributable to equity holders of the | 388.3 | 259.1 | 50 | ||||
parent | |||||||||||
389.2 | 511.8 | 267.4 | 91 | Operating cash flow before ch. in working capital | 901.0 | 509.3 | 77 | ||||
(4.7) | 352.8 | 343.4 | 3 | Operating cash flow | 348.0 | 382.5 | (9) | ||||
EARNINGS PER SHARE | |||||||||||
208.8 | 364.4 | 253.7 | 44 | Basic EPS, HUF(6) | 575.3 | 368.8 | 56 | ||||
146.4 | 359.0 | 253.7 | 41 | Basic EPS excl. special items, HUF (1)(6) | 508.5 | 368.8 | 38 | ||||
INDEBTEDNESS | |||||||||||
0.69 | 0.45 | 0.98 | - | Simplified Net debt/EBITDA | 0.45 | 0.98 | - | ||||
19% | 14% | 22% | - | Net gearing(16) | 14% | 22% | - | ||||
Q1 2022 | Q2 2022 | Q2 2021 | YoY | (IFRS), in USD million* | H1 2022 | H1 2021 | Ch % | ||||
Ch % | |||||||||||
5,931 | 6,871 | 4,802 | 43 | Net sales revenues(3)(8) | 12,802 | 8,408 | 52 | ||||
895 | 1,307 | 867 | 51 | EBITDA(3) | 2,202 | 1,582 | 39 | ||||
895 | 1,307 | 867 | 51 | EBITDA excl. special items(1) (3) | 2,202 | 1,582 | 39 | ||||
833 | 1,347 | 838 | 61 | Clean CCS-based EBITDA(1) (2) (3) (10) | 2,179 | 1,443 | 51 | ||||
696 | 1,011 | 476 | 112 | Profit from operation(3) | 1,707 | 810 | 111 | ||||
575 | 1,001 | 476 | 110 | Profit from operation excl. special items(1) (3) | 1,576 | 810 | 95 | ||||
513 | 1,040 | 447 | 133 | Clean CCS-based operating profit (1) (2) (3) (10) | 1,553 | 671 | 131 | ||||
3 | (71) | 85 | n.a. | Net financial gain / (expenses) (3) | (68) | 57 | n.a. | ||||
423 | 690 | 606 | 14 | Net profit attributable to equity holders of the | 1,113 | 873 | 27 | ||||
parent(3) | |||||||||||
1,194 | 1,410 | 910 | 55 | Operating cash flow before ch. in working capital(3) | 2,604 | 1,716 | 52 | ||||
(8) | 957 | 1,177 | (19) | Operating cash flow(3) | 949 | 1,311 | (28) | ||||
EARNINGS PER SHARE | |||||||||||
0.6 | 1.0 | 0.9 | 17 | Basic EPS, USD (3)(6) | 1.6 | 1.2 | 33 | ||||
0.5 | 1.0 | 0.9 | 15 | Basic EPS excl. special items, USD(1)(3)(6) | 1.5 | 1.2 | 17 |
- Special items of operating profit, EBITDA are detailed in Appendix II. and IV.
- (3) (6) (8) (10) (17) Please see Appendix XI.
*Key figures for continuing operations
3
Q1 2022 | Q2 2022 | Q2 2021 | YoY | EBITDA Excluding Special Items (HUF bn)(1) | H1 2022 | H1 2021 | Ch % | ||||
Ch % | |||||||||||
163.1 | 207.7 | 82.9 | 151 | Upstream | 370.9 | 157.2 | 136 | ||||
104.4 | 296.3 | 140.4 | 111 | Downstream | 400.8 | 250.4 | 60 | ||||
85.0 | 308.3 | 131.9 | 134 | CCS-based Downstream EBITDA (2) | 393.3 | 208.3 | 89 | ||||
15.5 | 5.5 | 6.8 | (19) | Gas Midstream | 21.1 | 21.1 | 0 | ||||
20.7 | 16.6 | 48.3 | (66) | Consumer Services | 37.3 | 82.6 | (55) | ||||
(9.6) | (25.6) | (9.8) | 161 | Corporate and other | (35.2) | (20.4) | 72 | ||||
(2.1) | (27.4) | (13.3) | 107 | Intersegment transfers (9) | (29.5) | (20.1) | 47 | ||||
271.7 | 483.7 | 246.8 | 96 | Clean CCS-based EBITDA for continuing operation(2) | 755.4 | 428.7 | 76 | ||||
(10) | |||||||||||
292.2 | 473.1 | 255.3 | 85 | Total EBITDA excluding special items for continuing | 765.3 | 470.7 | 63 | ||||
operation | |||||||||||
36.3 | 39.2 | 16.1 | 144 | Total EBITDA excluding special items for | 75.6 | 34.5 | 119 | ||||
discontinued operation | |||||||||||
328.5 | 512.3 | 271.4 | 89 | Total EBITDA excluding special items | 840.9 | 505.1 | 66 | ||||
Q1 2022 | Q2 2022 | Q2 2021 | YoY | EBITDA Excluding Special Items (USD mn)(1) | H1 2022 | H1 2021 | Ch % | ||||
Ch % | |||||||||||
504 | 576 | 282 | 104 | Upstream | 1,080 | 529 | 104 | ||||
312 | 820 | 477 | 72 | Downstream | 1,132 | 840 | 35 | ||||
254 | 863 | 447 | 93 | CCS-based Downstream EBITDA (2) | 1,117 | 701 | 59 | ||||
48 | 15 | 23 | (33) | Gas Midstream | 64 | 71 | (10) | ||||
64 | 46 | 164 | (72) | Consumer Services | 110 | 279 | (60) | ||||
(29) | (72) | (34) | 112 | Corporate and other | (102) | (69) | 47 | ||||
(4) | (78) | (45) | 73 | Intersegment transfers (9) | (82) | (68) | 21 | ||||
833 | 1,347 | 838 | 61 | Clean CCS-based EBITDA for continuing operation(2) | 2,179 | 1,443 | 51 | ||||
(10) | |||||||||||
895 | 1,307 | 867 | 51 | Total EBITDA excluding special items for continuing | 2,202 | 1,582 | 39 | ||||
operation | |||||||||||
111 | 108 | 55 | 96 | Total EBITDA excluding special items for | 219 | 116 | 89 | ||||
discontinued operation | |||||||||||
1,006 | 1,415 | 922 | 53 | Total EBITDA Excluding Special Items | 2,421 | 1,698 | 43 |
- Special items of operating profit, EBITDA are detailed in Appendix II. and IV.
- (9) (10) Please see Appendix XI.
Financial highlights
- Clean CCS EBITDA of continuing operations amounted to HUF 484bn (USD 1,347mn) in Q2 2022 and HUF 755bn (USD 2,179mn) in H1 2022, however a USD 1.7bn working capital build weighted on CF generation.
- The estimated impact of fuel price regulation and windfall taxes amounted to approximately USD 640mn with 90% affecting operations in Hungary in H1 2022.
- Downstream delivered HUF 308bn (USD 863mn) Clean CCS EBITDA in Q2 2022 representing a 134% increase year-on-year. H1 Clean CCS EBITDA for the segment amounted to HUF 393bn (USD 1,117mn), 89% higher than a year ago, as diminishing Petchem contribution was offset by higher R&M EBITDA generation.
- Consumer Services EBITDA declined by 66% year-on-year to HUF 17bn (USD 46mn) in Q2 2022 and also decreased by 55% year-on- year to HUF 37bn (USD 110mn) in H1 2022. Fuel margin regulation in various CEE countries and the retail tax in Hungary had visible negative impact to EBITDA.
- Upstream EBITDA excluding special items increased 151% year-on-year to HUF 208bn (USD 576mn) in Q2 2022. H1 EBITDA for the segment amounted to HUF 371bn (USD 1,080mn), 136% higher versus the previous year's H1. The segment results were supported by significantly higher oil and gas prices.
- Net debt to EBITDA hovers around 0.5x as strong operational CF generation was partly offset by a significant working capital build.
Operational and other highlights
- (Ex-UK)oil and gas production averaged at 92.4 mboepd, above the annual guidance of 90+ mboepd.
- Motor fuel demand increased by 11% in Hungary driven by the fuel price cap, significantly exceeding the demand uplift of Croatia and Slovakia (4% and 1% respectively) in Q2 2022
- MOL was announced as a winner for the Hungarian state concession tender covering municipal waste management services for a period of 35 years.
4
- The ICSID court of arbitration delivered its verdict in the case between Croatia and MOL. The court unanimously rejected Croatia's objection that the agreements concluded in 2009 are a results of criminal conduct and delivered a ruling that Croatia caused substantial damages to INA, therefore MOL was awarded a total of USD 236mn in damages.
Zsolt Hernádi, MOL Chairman & CEO, comments:
"The second quarter of 2022 was again a period that brought unprecedented uncertainty for the whole energy industry. Our duty of maintaining security of supply in several Central and Eastern European countries became the number one priority and we were able to deliver it in the last months as well. However, MOL's businesses suffer from the state interventions across Central and Eastern Europe, putting pressure on our financials and operations. On the other hand, it is reassuring that even in these crisis-hit months we were able to deliver in line with our plans, we are on the right track to achieve our goals and that regulatory measures do not hinder our investment plans. We have several transformational projects on the way pursuing targets laid down in our 2030+ strategy, topped with a round of new investments aiming for supply diversification. In these difficult times, MOL is more focused than ever not to lose sight of these ambitious goals."
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MOL plc published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 22:27:18 UTC.