Equity
MOL CEO: “We keep the pace", CFO: “We could do it even better"
One of the key developments of the April-June period was that the equilibrium of supply and demand tripped on the oil market. Free capacities went down to one million barrels at a daily production of 82 million barrels. Every glitch in supply drives prices up. Pessimistic analysts believe the price of oil could stabilise as high as USD 38 a barrel, while most optimistic ones see the price going down to USD 32. While these price levels could have an adverse effect on economic growth and oil demand as well, MOL will have no problems acquiring oil despite the financial woes of long-term Russian supplier Yukos, Mosonyi reiterated.
He also said the petrochemical segment could be kept in balance only when it is integrated with refinery activities. Otherwise, petrochemicals would face serious problems.
The Natural Gas segment result improved to a strong operating profit of HUF 32.3 billion compared to a loss of HUF 12.0 billion in H1 2003, due to the favourable effect of the new EU compliant regulatory environment. MOL has earmarked HUF 13 billion this year to compensate for potentially unfavourable gas price margins later in the year.
MOL was able to improve slightly in Exploration and Production despite the fact that it had to pay HUF 11 billion of supplementary mining royalty in the second quarter of the year as gas price compensation.
In Refining and Marketing the sales volume went up by 2% excluding the consolidation of Slovnaft.
Chief Financial Officer Michel-Marc Delcommune said that MOL’s operating profit rose within a year to HUF 46 billion from HUF 0.3 billion by the end of June and already exceeds the total operating profit of 2003.
MOL generated HUF 76 billion cash flow in the second quarter alone.
When examining the rocketing prices of oil and oil products, Delcommune said, we must note that the US dollar’s weakening prevents MOL from being totally exposed to the impacts of the price hike.
“We could to it even better," Delcommune wound up the press conference.
He also said the petrochemical segment could be kept in balance only when it is integrated with refinery activities. Otherwise, petrochemicals would face serious problems.
The Natural Gas segment result improved to a strong operating profit of HUF 32.3 billion compared to a loss of HUF 12.0 billion in H1 2003, due to the favourable effect of the new EU compliant regulatory environment. MOL has earmarked HUF 13 billion this year to compensate for potentially unfavourable gas price margins later in the year.
MOL was able to improve slightly in Exploration and Production despite the fact that it had to pay HUF 11 billion of supplementary mining royalty in the second quarter of the year as gas price compensation.
In Refining and Marketing the sales volume went up by 2% excluding the consolidation of Slovnaft.
Chief Financial Officer Michel-Marc Delcommune said that MOL’s operating profit rose within a year to HUF 46 billion from HUF 0.3 billion by the end of June and already exceeds the total operating profit of 2003.
MOL generated HUF 76 billion cash flow in the second quarter alone.
When examining the rocketing prices of oil and oil products, Delcommune said, we must note that the US dollar’s weakening prevents MOL from being totally exposed to the impacts of the price hike.
“We could to it even better," Delcommune wound up the press conference.
