MOL GROUP
INVESTOR PRESENTATION
MARCH 2024
MOL GROUP IN BRIEF
INTEGRATED CENTRAL EUROPEAN MID-CAP OIL & GAS COMPANY
CORE ACTIVITIES
UPSTREAM | DOWNSTREAM | CONSUMER | GAS | WASTE |
SERVICES | ||||
Exploration | Petrochemicals | MIDSTREAM | MANAGEMENT | |
Retail | ||||
Production | Refining | Mobility | ||
CLEAN CCS EBITDA BY SEGMENTS IN 2023 (USD MN)1
UPSTREAM | DOWNSTREAM | CONSUMER | GAS |
953 | 1,328 | 695 | 265 |
KEY FIGURES
CAPITAL MARKETS | BUSINESS / ASSETS | ||||
Market | Free float | Countries | ~25,000 | ~90 | Reserves |
cap. | (Mmboe) | ||||
30+ | |||||
USD 6.5 bn | 46% | Employees | Production | 335 | |
(mboepd) | |||||
INVESTMENT | USD 4.1 | 380 | Steam | 2,400+ | Retail |
cracker | transactions | ||||
GRADE | bn | Refinery | |||
capacity | Service | per day | |||
Credit | Available | capacity | |||
890 (ktpa) | stations 1,000,000+ | ||||
rating | Liquidity | (kbpd) |
2
(1) "Corporate and other" segment and intersegment eliminations omitted.
MOL IS THE DOMINANT O&G PLAYER OF THE CEE REGION
RUSSIA
AZERBAIJAN
#3
POLAND | |||||||
KAZAKHSTAN | |||||||
#1 | #1 | ||||||
#3 | #2 | SLOVAKIA | |||||
CZECHIA | #1 | #1 | |||||
HUNGARY | |||||||
PAKISTAN | |||||||
#2 | #2 | #3 | #3 | ||||
HQ | ROMANIA | IRAQ | |||||
SLOVENIA | |||||||
EGYPT | |||||||
FLAGSHIP COUNTRIES 1 | |||||||
CORE COUNTRIES 2 | |||||||
#1 | #1 | #2 | #2 | INTERNATIONAL UPSTREAM | |||
CROATIA | |||||||
SERBIA | FUEL WHOLESALE MARKET POSITION 3 | ||||||
# | |||||||
# | FUEL RETAIL MARKET POSITION 3 | ||||||
#1 | #1 | #3 | |||||
MONTENEGRO | 1 Countries with a refinery unit and at least 30% market share in Downstream and Consumer Services. | ||||||
BiH | 2 Countries with at least 10% market share in Consumer Services or fuel wholesale. | ||||||
3 Company estimates |
3
AGENDA
THE MOL GROUP EQUITY STORY | |
GROUP STRATEGY AND SUSTAINABILITY | 6 |
DOWNSTREAM | 12 |
WASTE MANAGEMENT | 20 |
CONSUMER SERVICES | 26 |
EXPLORATION AND PRODUCTION | 35 |
FINANCIALS | 42 |
SUPPORTING SLIDES | 50 |
Q4 2023 RECAP(LINK TO Q4 2023 RESULTS) | 59 |
THE MOL GROUP EQUITY STORY
GROUP STRATEGY AND SUSTAINABILITY
NAVIGATING THE COMPLEXITIES OF THE ENERGY TRANSITION
CHALLENGES AND OPPORTUNITIES IN A SHIFTING LANDSCAPE
AFFORDABILITY
Sustainability regulations: ambitious goals, but high uncertainty regarding markets & technologies
Geopolitical tensions: need for supply diversification & improved European competitiveness
Customer expectations: predictable & affordable energy supply
SUSTAINABILITY | SUPPLY SECURITY |
- The energy transition poses both challenges and opportunities, requiring a nuanced approach to balance sustainability, energy security, and economic competitiveness.
6
TRANSITION PATH BASED ON RESILIENT MOL GROWTH MODEL
HIGH-GROWTH AND PROFITABLE CEE CORE OPERATIONS AND INTERNATIONAL E&P ENABLE SMOOTH DIVERSIFICATION AWAY FROM FOSSIL FUELS
DS
E&P | UPSTREAM CEE |
Partly satisfies the HC need for Downstream and/or generates stable cash flow for the Group
REFINING AND MARKETING
Significant value added with highly efficient units securing the fuel supply
ESG | LOW CARBON CIRCULAR |
E&P | |
Already started low-carbon circular projects | |
DS | to enter into waste management, biogas |
production, green hydrogen, solar and other | |
means of energy production. Continued | |
expansion brings efficiency, self-reliance, and | |
compliance with EU sustainability-related |
regulations
CS
GM
of CEE
CONSUMER SERVICES
Mobility provider with 2,400 service stations across CEE to capture the consumer end of the O&G value chain
GAS MIDSTREAM
Regulated business (asset base and return) generating cash for high- return investments in other segments
E&P
CS | |
OPERATIONAL | ESG |
MODEL SECURES | |
TRANSITION WITH | |
GROWTH AND | DS |
RESILIENCE |
INTERNATIONAL UPSTREAM
Continued presence in Int'l upstream projects to generate cash and provide hedge for the other segments of the Group
DIGITISED RETAILER
Expansion in alternative fuel, car-sharing,non-fuel and highly digitised services allow for tackling transition
PETROCHEMICALS
Skewing downstream production towards petrochemicals also serves as a diversification from fossil fuels
7
HIGHER INVESTMENT TO SHAPE A SUSTAINABLE TOMORROW
LOW-CARBON CAPEX TO ACCELERATE AND MOVE BETWEEN 30-40% OF TOTAL CAPEX TO REALISE TRANSITION IN NEXT DECADES
2018-23 Organic CAPEXdistribution (Since Shape Tomorrow Strategy)
(yearly avg., real 2024)
Sustain
Strategic
USD ~1.3 bn | 72% |
USD
~1.8 bn
28%
USD
~0.5 bn
2025-30 Organic CAPEX distribution
(yearly avg., real 2024)
56%
USD ~1.1 bn
USD
~1.9 bn
USD ~0.8 bn
44%
- 2025-2030Organic CAPEX spend to increase by 5%+ on average in real terms to accelerate transition
- Keep sustain CAPEX low (close to previous year's average level) thanks to efficiency gains resulting from past and ongoing projects
- Increase share of transformational CAPEX with low-carbon share of total CAPEX targeted at 30-40%
- Investments continue to be deployed selectively depending on risk-return profile
Low-
carbon
<10%
30-40%
8
2030 EMISSION REDUCTION TARGET RAISED
LIKE-FOR-LIKE SCOPE 1&2 GHG EMISSION REDUCTION EXPECTATION INCREASED TO 33% FROM PREVIOUS TARGET OF 30%; GHG EMISSION TO DECREASE BY 25% IN ABSOLUTE TERMS
SCOPE 1&2 GHG EMISSION (Mt)
Like-for-like1 | Absolute2 |
REDUCTION AMBITION HIGHER
MOL committed to achieve 2050 net climate
neutrality
8
7
6
5
4
3
2
1
0
-10%-30%
7.6
0.1 0.1 6.9
0.1 0.0
6.4
6.1
1.0 0.6
-33%
5.3 5.1
-25% | |||||
7.6 | 7.2 | ||||
0.1 | 0.1 | 0.0 | |||
0.1 | |||||
5.7
6.4 6.1
1.0 1.0
Absolute GHG emission reduction2 target for 2030 set at ca. 25% compared to 2019, equalling 33% on like-for like1 terms, more ambitious than in 2021 strategy
No segment-level targets set in order to allow capitalizing on integrated model and ensure flexibility
Absolute Scope 3 emissions are expected to decrease by 5-10% by 2030 (from 2019)
From 2024 onwards, GHG and TRIR KPIs are also introduced in managerial short-term incentives
2019 | 2022 | 2030 old 2030 new |
E&P DS CS Other Total
2019 2022 2030
STRONGER SHORT-TERM COMMITMENT TO ACHIEVE CLIMATE GOALS
1 Like-for-like emissions onlyincludeGHG emissions of 2019 asset base. | 9 |
2 Absolute target-setting methodology in line with requirements set by EU Directive 2022/2464 (CSRD) on corporate sustainability reporting. |
MOL GROUP'S ESG TARGETS
CLIMATE/GHG TARGETS
Reducing Group-level Scope 1+2 GHG emission by 25% by 2030
(from 2019)
Ambition to reach net carbon neutrality by 2050
No segment-level targets set in order to allow capitalizing on integrated model and ensure flexibility
Target is set in absolute terms to comply with EU reporting requirements
Share of low-carbon CAPEX between 30-40% for the period 2025-2030
Carbon trajectory and EU taxonomy alignment are incorporated into investment decision processes
MOL's low carbon definition covers every project which contributes to the Group's energy transition by lowering emissions (including
energy efficiency, electrification) or stepping into new, low carbon
businesses (renewable energy, circular economy).
GHG emission reduction and TRIR targets are included in the short-term management incentive scheme from FY2024 onwards
CLIMATE &
ENVIRONMENT
HEALTH &
SAFETY
PEOPLE &
COMMUNITIES
INTEGRITY &
TRANSPARENCY
OTHER
Renewable electricity consumption up to 2,500 GWh per year by 2030
Scope 3 is expected to decrease by 5-10% (from 2019) by 2030, depending on fossil fuel demand
Zero fatality
TRIR below 1.1 for core activities by 2030
Eliminate significant API Tier 1 process safety events by 2030
Women in management: reach 30% target by 2030
Keep sustainable employee engagement level at min. 75%
50% of social investment spent on local communities by 2030
Annual ethics training for 100% of employees
Procurement: Reduce non-hydrocarbon GHG emission by 30% in inbound supply chain by 2030
10
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MOL plc published this content on 13 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 March 2024 18:01:08 UTC.