- Clean CCS EBITDA reached US$2.69 billion, up 10% versus previous year.
- Upstream’s contribution jumped by 49% y-o-y, Consumer Services increased by 18%.
- Net profit reached again US$1.1 billion, equaling previous year’s result.
MOL Group has announced its financial results for 2018. MOL increased its EBITDA by 10% comfortably beating its upgraded 2018 target as Upstream and Consumer Services continued to significantly increase their contributions, while a strong internal performance in Downstream partly offset the weakening margins.
Clean CCS EBITDA rose by 16% in the last quarter compared with Q4 2017 resulting in an EBITDA of US$2.69 billion for 2018. This represents a 10% increase versus 2017 and is significantly above the target. MOL continued its strong free cash flow generation at US$1.4 billion with Upstream generating nearly 70% of that.
Upstream EBITDA was the Group’s largest contributor in 2018 with US$1.269 billion. This is an increase of 49% on the back of higher oil & gas prices and the contribution of high-margin barrels from the UK’s Catcher field. As production of Catcher reached plateau, total daily production of the Upstream portfolio in the fourth quarter averaged 115 000 barrels of oil equivalent, bringing the full year average to 111 000.
Downstream Clean CCS EBITDA reached US$995 million for the year. The decline of 16% is primarily due to lower refining and significantly lower petrochemical margins. A stronger internal performance – the successful delivery of US$110 million efficiency improvements of the DS 2022 programme – and higher volumes could only partly offset the weakening margin environment.
Consumer Services EBITDA continued its double-digit growth to new all-time highs. In 2018 EBITDA reached US$423 million, up by 18% from the previous year, driven by the dynamic expansion of non-fuel margin while also supported by healthy fuel market trends. Non-fuel margin per site grew 15% annually in the past four years on average.
The Gas Midstream segment reached US$189 million EBITDA in 2018, 15% lower than a year ago due to tariff changes and rising energy cost.
Chairman-CEO Zsolt Hernádi commented on the results: “2018 was another year of very strong delivery with the highest EBITDA in 7 years, and it was also a year of continued transformation, including the final investment decision on the polyol project. Upstream generated nearly US$1 billion free cash flow and increased its production, Downstream had robust profitability despite weaker refinery and petchem margins and achieved further considerable efficiency improvement, while Consumer Services maintained its double-digit EBITDA growth and launched various new innovative services. We have very strong foundations - a robust balance sheet on the back of several years of strong free cash flow generation, a resilient, integrated business model and a talented and dedicated workforce – to look into 2019 with optimism. We expect to deliver around US$2.3 billion EBITDA this year, assuming a more conservative downstream environment and a Brent crude price an around US$60/bbl. This shall provide us enough cash flow to cover the increasing investments into our major transformational projects.”
Read the article online at: https://www.oilfieldtechnology.com/special-reports/22022019/mol-group-2018-results-highest-ebitda-since-2011/