Oil sector review - What to expect from MOL?

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In light of these, you should not be surprised that EPS forecasts of oil companies have been rising in the past quarter, However, this had only a marginal impact on the share prices. In the following we analyse how all these processes could be translated onto MOL.In the following chart we give you a divisional breakdown of the companies' second-quarter performance. The gas segment was deliberately excluded because the differing operations and regulatory framework would not allow definable comparison with MOL.

The profits of the research/production divisions were boosted by a 35% year-on-year hike of oil prices. The only exception is Royal Dutch/Shell where a USD 330 million amortisation item and nearly USD 150 million one-off cost item ate into profits.

One of the most interesting items for us is the profit shift at MOL's processing/trading segment, which used to contribute to over 50% of the companies consolidated profit in each quarter.
While most market players expected high refinery margins to go down, it did not happen. Moreover, they jumped even higher in April-June.

The growth dynamism of refinery margins differed greatly in the second quarter depending on where the refineries were located. The Ural complex margin, theoretically (!) a benchmark for MOL, went up by “only" 57%. However, MOL's refinery output shows a better product structure than that of the Ural complex margin, and so the Hungarian firm's growth could be larger than 57%.

• Tags:
• energy,
• technikai elemzés,
• equity