Pressemitteilungen

• The €1.3 billion project is MOL's largest organic investment to date, for which it has also received support from the Hungarian state
• The complex will produce raw materials for durable plastic consumer goods such as bed mattresses, moulded car seats, insulation for houses and elastic rubber soles for sports shoes
• Thanks to the innovative technology of Germany's thyssenkrupp Uhde and Evonik, the plant is operating with the most advanced technology available

Tiszaújváros, May 14, 2024 - MOL's EUR 1.3 billion polyol complex in Tiszaújváros, boasting a capacity of around 200,000 tonnes of polyol per year, has been inaugurated. The ceremony, addressed by Prime Minister of Hungary Viktor Orbán, MOL's Chairman-CEO, Zsolt Hernádi, and thyssenkrupp Board member Ilse Henne, marks a significant milestone for the company. MOL Group stands as the sole entity in Hungary and in Central and Eastern Europe to cover the entire value chain, from petroleum processing to polyol production (a widely used plastic raw material).

MOL Group held an inauguration ceremony in Tiszaújváros to celebrate the completion of its largest organic investment, the polyol complex. MOL, thyssenkrupp and Evonik IP signed the licence agreement in summer 2017, and the foundation stone of the complex was laid in September 2019.

The main units were transported to Tiszaújváros between 2019 and 2020, mainly by water, and were followed by the completion of the complex's hydrogen peroxide, propylene oxide, polyol and propylene glycol plants. In addition to the four main plants, a pilot polyol plant, a quality assurance laboratory and, in Százhalombatta, a Research and Development Center were also built.

"I am proud that we have completed the polyol complex. It was a true international team effort, a great collaboration involving thousands of people over the past six years that enabled us to deliver MOL Group's largest investment ever, perhaps the biggest development in modern Hungarian history. We have come a long way, but the road ahead is even longer. The polyol complex will significantly strengthen our company's position and competitiveness, with the entire value chain from petroleum processing to polyol production. This investment has put Tiszaújváros back on the map of the European chemical industry, making it one of the most important industrial centers in the region. It will enhance the industrial competitiveness of our country and could catalyze economic growth as well. Through this investment, Hungary will be stronger, as MOL's success is the success of the whole country," said Zsolt Hernádi, Chairman and CEO of MOL Group.

“With this new MOL polyol-complex we establish new standards in terms of efficiency, environmental friendliness and automation by combining proven technologies with innovative solutions” , said Nadja Håkansson, CEO of thyssenkrupp Uhde. “We are grateful for the deep and trustful partnership with MOL. This polyol plant is a true landmark project and a great demonstration of how we at thyssenkrupp Uhde enable the industrial green transformation. With fully integrated and highly automated plant units, the valuable polyol chemicals will be produced in a highly efficient and sustainable way.”

The project involved an international team of thousands of experts, with engineering design work carried out in Germany, Thailand, India and Hungary. The plant equipment came from 24 countries. The construction of the complex involved 75 000 cubic metres of concrete, 13 000 tonnes of steel, 2 500 kilometres of cable and 700 km of pipelines laid in more than 18 million working-hours. The Hungarian government contributed with €131.5 million to the project: a €93.6 million corporate tax credit, which can be claimed once the investment is operational, and a €37.9 million investment grant based on an individual government decision.

Polyol is one of the most sought-after plastics raw materials, used in a wide range of industries from car manufacturing to clothing and insulation. Polyurethane is made from polyol and is the base material for many of the durable consumer goods that everyone encounters in their everyday lives.

Polyurethane made from polyol is needed:

• for the production of foam mattresses, bed mattresses, foam for comfortable seating on sofas and armchairs, and rigid foams for insulating refrigerators;
• for the production of insulating materials used in the construction industry, whether for the insulation of the facade of a building or a pipeline;
• for the production of sealants and adhesives familiar from DIY stores, and the elastic rubber soles of running shoes.

The Tiszaújváros plant will produce polyol using one of the most efficient and environmentally friendly methods available today. According to MOL's calculations, the plant will contribute nearly EUR 150 million annually to the MOL Group's financial results and will provide long-term employment for nearly 300 people.

MOL Group has been strengthening its chemical business for almost ten years: the new butadiene extraction plant was completed in 2015 with a HUF 35 billion investment, followed by the synthetic rubber (S-SBR) plant in 2018 with a HUF 100 billion investment. In 2016, the company announced a major strategic shift to prepare for the energy transition and the post-fossil fuel world by expanding its portfolio. As part of the third and largest wave of investment in the petrochemicals business, next to the polyol complex, the polypropylene plant is the most important element, which is a HUF 65 billion investment, and there are nearly EUR 2 billion of life cycle investments that will secure the long-term future of the chemicals business.

About MOL Group

MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 24,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemicals plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of almost 2400 service stations across 10 countries in Central & South Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 8 countries and exploration assets in 10 countries.

MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central-and Eastern Europe.

About thyssenkrupp Uhde

thyssenkrupp Uhde combines unique technological expertise and decades of global experience in the engineering, procurement, construction and service of chemical plants. We develop innovative processes and products for a more sustainable future and thus contribute to the long-term success of our customers in almost all areas of the chemical industry. Our portfolio includes leading technologies for the production of base chemicals, fertilizers and polymers as well as complete value-chains for green hydrogen and sustainable chemicals. www.thyssenkrupp-uhde.com

Press contact: internationalpress@mol.hu

thyssenkrupp Uhde
Christian Dill
Press Spokesperson
Phone: +49 231 547 3334
E-mail: christian.dill@thyssenkrupp.com

• MOL Group Profit before tax reached USD 382 mn in the first quarter of 2024, 18% and 29% lower quarter-on-quarter and year-on-year
• Downstream’s results have been affected by the increase of Brent-based refining margins and petrochemicals margins but production decreased due to turnarounds
• Consumer Services' results were boosted by an increase in non-fuel sales and a one-off gain on the sale of service stations
• Upstream production increased quarter-on-quarter to 92.3 mboepd mainly thanks to production starting in Kazakhstan in December but plummeting gas prices had a negative impact on results
• Extra government take continued to weigh on the results: the revenue-based extra tax for 2024 was accounted in the first quarter and had USD 110 mn effect while Brent-Ural tax and CO2 tax each had USD 27 mn impact

Budapest, 10 May 2024 – Today, MOL Group announced its financial results for the first quarter of 2024. MOL Group delivered USD 382 mn Profit before tax in Q1 2024, amidst continued government takes and turnarounds in Downstream, the unfavourable effect of lower gas prices in Upstream, and continued strong non-fuel dynamics in Consumer Services. MOL Group generated USD 402 mn simplified free cash flow in Q1 2024, 22% lower compared to the same period of last year.

Chairman-CEO Zsolt Hernádi commented on the results : “MOL Group's financial results once again demonstrated the effectiveness of our resilient business model. While coping with the challenges of the external environment, we were able to deliver solid results. Our stability is key to strengthen Central- and Eastern Europe’s security of supply and delivery of strategic investments, like the soon-to-be-inaugurated EUR 1.3 bn polyol complex.

In March, we outlined an ambitious investment agenda in our updated strategy to increase the competitiveness of MOL as well as the industry in CEE. Despite the extra heavy government levies weighed on our performance, we remain committed to continue our energy transition journey and develop our self-sufficiency further on.”

Downstream results were supported by both petchem and refining margins but lower sales of own production weighed on performance. Extra government take in Hungary continues to impact results with the revenue based tax, Brent Ural tax, and CO2 tax all having a considerable effect on quarterly results.

Consumer Services marked a continuing improvement in non-fuel margin, meaning mostly expanding gastro, grocery, and non-food sales, while one-off gains on remedy sales of fuel stations also contributed to Q1 results. Despite a decrease in network size due to remedy handovers in Hungary, fuel sales volume increased by 6% year-on-year, while unit fuel margin dropped by 2% year-on-year. The number of Fresh Corner sites rose throughout the network to 1,260 in Q1 2024, from 1,172 in Q1 2023.

Upstream production totalled 92.3 mboepd in the first quarter of 2024, which means 0,8 mboepd increase quarter-on-quarter. As first gas was reached in Kazakhstan in December 2023, it resulted +1.3 mboepd in Q1 2024. CEE production levels have decreased slightly due to baseline decline in onshore assets in Croatia, while production in Hungary was retained at high levels thanks to successful efforts to counter natural decline. Group-level unit cost remained unchanged year-on-year despite general inflationary pressures, due to decreasing electricity prices, higher production, and composition shifting towards lower-cost assets.

Circular Economy Services was affected by lower than expected Extended Producers Responsibilty (EPR) revenue realization. The Deposit and Refund System (DRS) is in operation since 1 January with ca. 2,400 Reverse Vending Machines installed and available at retail sites all around Hungary.

Gas Midstream performance was marked by the combined effect of a favourable macroeconomic environment and changing demand for regional transmission services.

About MOL Group

MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 24,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemicals plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of almost 2400 service stations across 10 countries in Central & South Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 8 countries and exploration assets in 10 countries.

MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central-and Eastern Europe.

Press contact

@: internationalpress@mol.hu

• MOL produces 1600 tonnes of green hydrogen per year using electricity from renewable sources

• The plant will reduce carbon dioxide emissions of the Danube Refinery by 25 000 tonnes

• With the introduction of this technology, MOL Group has taken an important step towards carbon neutrality and sustainable mobility

• The EUR 22 million investment is in line with the MOL Group's long-term corporate strategy SHAPE TOMORROW

• The company is planning green hydrogen plants in Rijeka and Bratislava, following on from Százhalombatta

Százhalombatta, 11 April 2024 - MOL Group has handed overa 10 megawatt capacity green hydrogen plant in Százhalombatta which is the largest in Central and Eastern Europe . The €22 million investment makes fuel production more sustainable: the plant will reduce the Danube Refinery's carbon dioxide emissions by 25 000 tonnes. MOL will be able to produce 1,600 tonnes of clean, carbon-neutral green hydrogen per year which opens a new chapter in hydrogen economy. The investment is in line with the MOL Group's SHAPE TOMORROW corporate strategy to make the region more sustainable, competitive and self-sufficient.

MOL Group’s goal is to provide the solutions for tomorrow: the green hydrogen plant in Százhalombatta, with a 10 megawatt electrolysis unit created by Plug Power produces around 1,600 tonnes of clean, carbon-neutral green hydrogen per year. The €22 million investment will reduce the carbon footprint of the Danube Refinery by more than 25,000 tonnes of carbon dioxide per year. The new technology will gradually replace the natural gas-based production process, which currently accounts for one sixth of the MOL Group's total carbon dioxide emissions. The plant will start producing in the second half of 2024: MOL will use the green hydrogen primarily in its own network for fuel production.

Plug Power's electrolysis equipment uses electricity from renewable sources to break down water into hydrogen and oxygen. This means that no polluting by-products are generated and, in fact, the plant produces 8-9 tonnes of pure oxygen per tonne of hydrogen. The US company has offered MOL an innovative and reliable technology: the hydrogen generators, optimized for the production of pure hydrogen, have almost 50 years of operational experience.

"MOL Group has reached another milestone: we can now produce green hydrogen without producing any greenhouse gases. Using this technology, we are able to achieve the same emissions reduction as if we took roughly 5,500 cars off the road overnight. Today, our new green hydrogen plant is only making MOL's industrial operations greener, but tomorrow it will offer solutions for the whole industry and hydrogen mobility. After Száhalombatta, we will take the technology to the other two fuel production units of the group to make the fuel production process more sustainable at each of MOL Group's refineries" saidJózsef Molnár, CEO of MOL Group, at the inauguration ceremony of the new green hydrogen plant.

The investment is in line with the MOL Group's SHAPE TOMORROW corporate strategy which aims to make the region more sustainable, competitive and self-sufficient.

“We are thrilled to celebrate, in partnership with MOL, the inauguration of one of Europe's largest green hydrogen plants supporting a refinery,"stated Plug CEO Andy Marsh. "As a potent way to reduce carbon emissions within refinery operations, we are proud to equip MOL with cutting-edge electrolyzer technology to efficiently produce green hydrogen. Together, we are advancing towards carbon neutrality, fostering greener operations, and propelling the hydrogen economy forward. "

Come with us into the world of green hydrogen! (youtube.com)

• MOL Group is launching its highly successful graduate program, Growww, which has attracted over 2,700 fresh graduates from all over Central and Eastern Europe since 2007.
• This year, MOL Group is recruiting more than 90 talented fresh graduates in eight countries, providing them with the opportunity to join a leading and stable company in CEE and work at on the frontline of the energy transition and contribute to the solutions of tomorrow.
• Positions include exciting areas such as renewable gases, fuel strategy, circular economy, cyber security or MOL Campus asset and service management.
• Potential Growwwers can apply to the open positions in MOL Group at the following site: mol.hu/karrier

Budapest, 22 March 2024 – The application period for the MOL Group's highly successful fresh graduate program, Growww, has commenced. The company is recruiting over 90 young professionals in 8 countries, offering them the chance to work on the frontline of the energy transition and contribute to the solutions of tomorrow within the one-year program. The program also serves as a steppingstone for young individuals with a bachelor's or master's degree, as 80% of the Growwwer graduates will subsequently be employed by MOL Group.

One of the most exciting regional graduate programs, which has attracted more than 2,700 fresh graduates from all over Central and Eastern Europe since its launch, is now open to professionals in various fields, including economists, lawyers, engineers, geophysicists, logisticians, HR, IT, finance and finance professionals. Positions encompass intriguing areas such as renewable gases, fuel strategy, circular economy, cyber security or MOL Campus asset and service management. In addition to the relevant academic backgrounds, this year, the right attitude and key competencies, such as analytical thinking, good communication skills and a solution-driven mindset are crucial. In addition, the MOL Group has recently updated its strategy with a focus on renewable fuels, green hydrogen, biomethane and geothermal energy. The participants in the programme can play an active role in making the whole region greener, more self-sufficient and competitive.

In total, there are more than 90 positions available, with over 40 in Hungary, however, applications are also welcomed from candidates in the Czech Republic, Poland, Slovakia, Italy, Romania and Croatia. The one-year program, designed to introduce young talents to the energy industry, is open to individuals with up to one year of work experience. The Growwwers can choose seasoned professionals as mentors to facilitate their integration, and the company also offers various methods for their professional and personal development.

"MOL Growww, a steadfast component of MOL Group since 2007, provides a unique opportunity for young graduates to join our international team and actively contribute to shaping the future of the energy industry. Future Growwwers can engage in real projects, collaborating with us to find solutions to the challenges of tomorrow. Demonstrating our commitment to long-term development, not only mid-level leaders, but also a number of our frontline leaders initiated their careers with MOL through the Growww program" said Lana Faust Križan, HR Senior Vice President of MOL Group.

Potential Growwwers can apply to the open positions in MOL Group at the following site: mol.hu/karrier

Check out our video about last year’s Growww Onboarding Day: Growww Onboarding Day 2023 (youtube.com)

MOL Group updates its long-term strategy announced in 2016

• MOL Group aims to achieve carbon neutrality by 2050 through smart transition: ensuring sustainability and further strengthening security of supply through innovative technologies
• The company will further strengthen its refineries with $150 million in efficiency improvements and continue to invest in oil processing resilience
• Exploration & production focuses on green projects alongside security of supply
• Consumer Services will achieve $1 billion in EBITDA per year by 2030, continue to transform its filling stations and further expand its network of e-charging stations
• Waste management business could potentially provide 1.5 million tons of feedstock per annum to the regional oil, chemical and energy sector from 2030.
• Will invest $4 billion in green investments by 2030 and make the region more competitive with renewable energy

Budapest, 13 March, 2024. MOL Group has updated its long-term strategy SHAPE TOMORROW: the company aims to make the region greener, more self-sufficient and more competitive. MOL Group is ensuring a smart transition with tomorrow's solutions: investing into further strengthening the region's security of supply, creating value from waste and shaping the future of mobility with innovative technologies. The updated strategy places greater emphasis on renewable fuels, green hydrogen, biomethane and geothermal energy. It will spend more than $4 billion on green investments by 2030 and aims to reach carbon neutrality by 2050.

"In 2016, we were one of the first in the oil and gas industry to announce that we would diversify from fossil fuel and gradually develop ourselves in petrochemicals and consumer services. We have been following the same direction for eight years, but we have to take into account that recent years have brought radical challenges and change in the energy industry. The time has come to update our strategy again, as sustainability targets have become more ambitious while demand for fossil fuels remains strong.

We do not believe in a dogmatic approach, we are looking for smart solutions. We are moving forward in a sober, pragmatic way enabling the green energy transition while uncompromisingly guaranteeing security of energy supply, the competitiveness of our company and value creation for our shareholders." - said Zsolt Hernádi, CCEO MOL Group.

He added: "This means that, alongside our traditional business activities, we will be using green energy to make our company, and thus the whole Central European region, more sustainable, self-sufficient and competitive. We create value from waste, kick-start the circular economy and further strengthen security of supply.

There is no question that the energy transition must be implemented and the very ambitious targets set by the European Union must be achieved. This is in the interest of all of us. MOL Group, as a leading company in the Central European industry, is doing everything it can to meet these targets and transform the company. But it is clear that it is not possible to do it alone and it is not fair if all the costs of the energy transition are passed on to industrial companies. Community goals can only be achieved with community support, smart regulation and cooperation on all level. MOL Group can be counted on as a partner in this common European effort."

The main priority of the updated long-term strategy is to ensure energy supply security and also enable a steady green transition. To achieve this, the company further strengthens its traditional asset portfolio and will spend more than $4 billion on green investments by 2030. The key elements of the strategy update by business area are as follows:

Downstream continues to strengthen its refining positions in Europe, while dynamically adapting to the changing needs of mobility and the economy. Renewable fuels open new dimensions in sustainable mobility: the updated strategy focuses on the production of biomethane and green hydrogen, while the circular economy increases the contribution of bio- and waste streams to production. To diversify from fossil fuels, MOL Group invests $1 billion in waste integration, recycling and medium-scale chemical investments by 2030.

The company will make refining more flexible to meet the demands of the economic and regulatory environment and further strengthen security of supply in the region. MOL Group also spends more than $1 billion by 2030 on projects that enable energy efficiency, the scale-up of sustainable fuels in its portfolio and substantially reduce the business's GHG emissions. To achieve these goals, we will increase the use of renewable electricity across the MOL Group, particularly in the Downstream area.

Upstream plays a key role in financing the group-level transformation, and slowing down the natural decline in production remains a priority. MOL Group will maintain production at an average daily level of at least 90 thousand barrels of oil equivalent for the next 5 years. Beyond conventional hydrocarbon production, the division strengthens its carbon-neutral projects: the company is building on its existing competencies to start geothermal exploration, launches a pilot lithium project and focuses on building storage capacity in Carbon Capture and Storage. Upstream also further strengthens cross-border cooperation between MOL and INA, optimize its infrastructure and support security of supply in the region through efficiency improvements and cost optimization. It will further diversify its international portfolio and establish strategic partnerships.

Consumer Services aims to reach $1 billion EBITDA per year by 2030. This will require further network expansion and optimization in existing and potential new markets in the CEE region. The company plans to increase the share of non-fuel products to 65% of all transactions by 2025 and to 85% by 2030, furthermore its goal is to have 10 million MOL MOVE users in the region. MOL will continue to transform its service stations in the CEE region, further expanding and strengthening its gastro offers. In line with market needs, it will further develop its mobility solutions, its electric charging network and prepare for the uptake of hydrogen fuel cell vehicles.

MOL Group's integrated business model provides a unique solution in Europe to one of the most significant environmental challenges: waste management. The company considers waste as a valuable raw material and energy source, and will increase its recycling rates to 65% by 2035, while reducing landfilling to 10%. Waste management business could potentially provide 1.5 million tons of feedstock per annum to the regional oil, chemical and energy sector from 2030.

As MOL Group is expected to consume around 2,500 GWh per annum of renewable electricity by 2030 due to Downstream decarbonization, we are building our own renewable portfolio. Our green hydrogen plant in Százhalombatta will be also supplied with renewable electricity. Solar projects are expected to provide the majority of the production, and we consider additional renewable sources and storage solutions.

More information: https://molgroup.info/en/strategy-2030

Budapest, February 26, 2024 - Nearly 20 industries’ 73 leaders have handed over a joint statement to Belgian Prime Minister Alexander De Croo and Ursula von der Leyen, President of the European Commission, following an industrial summit held in Antwerp. The participants agreed that a green energy transition can be efficient and successful only if Europe's competitiveness is also maintained, which requires incentives and a regulatory environment that supports industrial development.

Leaders of key industry sectors, together with trade unions, stood up for the competitiveness of European industry at a leaders European industry summit, representing a total of 7.8 million European workers. The participants summarized their objectives in a joint statement, emphasizing that European industrial policy must be clear and predictable aiming to rebuild trust in the industry.

The Antwerp Declaration outlines 10 specific actions, including the strategic integration of the EU industrial agreement, the rationalization of legislation, and the simplification of the state aid framework. Furthermore, industry leaders call on decision-makers to help European industry maintain its global competitiveness.

The Hungarian Chemical Industry Association (MAVESZ) has actively participated in preparing the Antwerp Declaration and supports its content. “From sustainability and economic development perspectives, it is of primary importance that key industries – including the chemical industry – maintain and further increase their competitiveness. We must do everything to ensure that the leaders of the European Union recognize that leading industrial players should be seen as partners, and not problems, as they are the ones who can significantly advance the cause of the green energy transition with their innovative solutions,” added Csaba Szabó, Director of MAVESZ.

MOL Group also signed the declaration, with Gabriel Szabó, Executive Vice President of Downstream, representing the company in Antwerp.

“MOL Group is committed to becoming a major player in the circular economy of the Central and Eastern European region and to accelerating the green energy transition with its investments. However, this requires a regulatory environment that encourages rather than hinders our competitiveness. This is especially true for a company group like MOL, which, in addition to complying with the EU’s green objectives, plays an important role in guaranteeing the region's energy security. We stand by the joint statement issued with the leading companies of the European industry because we are convinced that the current decline in production and the existing competitive disadvantage can be properly addressed through broad industry and regulatory cooperation,” said Gabriel Szabó, who also pointed out the fear that energy-intensive industries might leave Europe due to the current regulatory environment, high energy prices, and administrative burdens.

• MOL Group’s profit before tax (PBT) amounted to USD 1.936 billion, a 37% decrease compared to 2022 due to difficult macroeconomic climate, turbulent oil industry, hectic tax policies and government takes.
• Full-year 2023 Clean CCS EBITDA reached USD 3.1 billion, down 34% compared to 2022 yet exceeding the annual guidance of USD 2.8 billion, demonstrating robust internal performance in the upstream, downstream consumer services despite highly demanding external circumstances.
• Upstream EBITDA in 2023 arrived at USD 953 million, down 57% compared to the previous year, driven by lower hydrocarbon prices. Production levels finished the year above guidance, amounting to 90.4 mboepd in full-year 2023.
• Downstream Clean CCS EBITDA reached USD 1,328 million in 2023, translating to an 41% decrease against 2022 due to lower margins and excessive taxation that could only partly be offset by increasing volumes. Petchem remained in the red amid weak margins, contributing negatively to EBITDA.
• Group-level Q4 2023 Clean CCS EBITDA decreased 8% compared to Q4 2022, to USD 992 million.
• MOL sets 2024 profit before tax guidance at around USD 1.6 billion and EBITDA guidance at around USD 3 billion.

Budapest, 18 February 2024 – Today, MOL Group disclosed its financial results for full year 2023 as well as Q4 2023. Due to geopolitical tensions, a hectic industry and macro environment and unpredictable tax policies and government takes, the company's profit before tax fell 37% compared to 2022 to USD 1.936 billion. The company achieved a full-year clean CCS EBITDA of USD 3.1 billion, exceeding the updated guidance. On the back of cautious and considered CAPEX spending and strong operating cash flow generation the simplified free cash flow amounted to USD 1,678mn. Clean CCS EBITDA in Q4 2023 USD 992 million, an 8% decrease compared to 2022 Q4. MOL expects 2024 profit before tax at around USD 1.6 billion and EBITDA at around USD 3 billion.

Chairman and CEO Zsolt Hernádi commented the results: "Due to exceptional and difficult external circumstances, our profit before tax decreased in 2023. This is no surprise as we are coming to the end of a year of geopolitical, macroeconomic and industry tensions, in which the regulatory and tax policy environment has continued to put additional significant pressure on us. Despite these challenges, we had a strong year and a stronger-than-expected internal performance. This is thanks to MOL Group's outstanding operational and cost efficiencies and cautious investment policies, which have been able to offset the impacts of the external environment. The challenges we faced in 2023 only made us more determined to succeed, raising our ambition to venture into new territory: the addition of waste management to our portfolio has strengthened our integrated business model and provides the perfect foundation and momentum for us to grow and evolve. We continue our journey of smart transition, contributing to both sustainability and competitiveness at the same time. That is, alongside our promising low carbon and green investment projects, we actively develop the industrial culture of our region and strengthen the energy sovereignty of Central and Eastern Europe.”

Downstream full-year 2023 Clean CCS EBITDA reached USD 1.328 billion, constituting a 41% decline compared to 2022, driven normalising refinery margins and weak petrochemical environment, coupled with excessive extraordinary taxes that could only partly be offset by higher production and sales volumes. MOL Group was also able to continue with investment projects throughout the CEE region, furthering the company’s goals in maintaining its dominant regional role in traditional downstream as well as the transformation into a flexible and sustainable chemical company. Meanwhile, Q4 Clean CCS EBITDA amounted to USD 456 million, down by 3% compared to the previous quarter due to retreating refining margins and seasonally lower volumes. Despite a slight increase compared to the previous quarter, Petchem margins remained weak and Petchem EBITDA continued to be in the red, contributing negatively to EBITDA in the whole of 2023.

Upstream: Full-year Upstream EBITDA arrived at USD 953 million, constituting a 57% decrease compared to 2022. Annual simplified free cash flow decreased to USD 587 million, mainly as a result of lower hydrocarbon prices. Production totalled 90.4 mboepd in full-year, a remarkable achievement landing production levels above 2023 target levels despite reasonable difficulties in the Shaikan field in Iraqi Kurdistan. Strong performance in Hungary also contributed to the improvement in production numbers, as well as meeting state-mandated expectations locally. Specifically in Q4 2023, production came in at 91.5 mboepd, up 4.7 mboepd against the previous quarter, as the completion of planned turnarounds in treatment facilities and an increased entitlement in the ACG field helped to boost production. As a result, 2023 Q4 EBITDA jumped by 92% to USD 375 million from the level of the previous quarter, also aided by slightly higher hydrocarbon prices and the phaseout of the special mining royalty regime in Hungary. Other noteworthy developments saw first gas reached in a field co-owned by MOL in Kazakhstan, with additional production capacity to go live in H2 2024, as well as new geothermal licenses being granted to MOL Group in both Hungary and Croatia.

Consumer Services: Consumer Services EBITDA grew by 61% in Q4 2023 compared to Q4 2022, amounting to USD 144 million on the back of outstanding performance enabling the steady improvement of margins, and also supported by the lifting of price cap regimes on fuel in both Hungary and Croatia. The first year of operation in Poland following the acquisition of Lotos stations in December 2022, together with the addition of the OMV Slovenia network to MOL Group’s regional portfolio enabled around 260 million litres in additional fuel volume sold in 2023 Q4, driving the 10% overall fuel volume increase between Q4 2022 and Q4 2023. The Consumer Services segment also performed remarkably in improving non-fuel margins, with a 32% expansion reached during the same period. The result was supported by strong Gastro and Grocery sales, marking a successful continuation of the non-fuel concept’s rollout: specifically, the number of coffees sold rose by 20%, together with a 48% increase in the number of hotdogs purchased by customers, while sandwich sales saw a 52% bump. Besides the strong offer line-up, the upward trend was aided by the steady expansion of digital discounts and the MOL MOVE loyalty scheme, and the ongoing integration of the expanded network in Poland and Slovenia into the Fresh Corner and Gastro concepts.

Waste Management began operations as MOHU according to concession terms in Hungary in July 2023, realising an uninterrupted waste service and a seamless takeover of invoicing, with EBITDA arriving at USD 37 million in 2023. The introduction of the Deposit Refund System (DRS) was another essential achievement, requiring significant CAPEX spending with the installation of around 2000 machines in cooperation with retail chains: this will greatly contribute to Hungary meeting EU obligations. The implementation of MOL’s first own waste yard investment also started, along with preparations for 9 further waste yards, 3 transfer stations and 3 waste sorting plants. Total CAPEX of USD 63 million - including the purchase of 200 000 separate collection containers - also served to underline MOL’s strong intention to raise its profile by the significant development of the circular economy, initially in Hungary.

The Gas Midstream segment reached USD 265 million in EBITDA in 2023, 62% higher than a year earlier, as demand for cross-border capacities strengthened considerably during 2023. Several medium size reconstruction and investment projects lead to higher CAPEX spending in 2023 compared to 2022.

About MOL Group

MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemical plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of almost 2400 service stations across 10 countries in Central & South-Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 7 countries and exploration assets in 11 countries.

MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central-and Eastern Europe.

Press contact:

@: internationalpress@mol.hu

• MOL reached a USD 976mn clean CCS EBITDA in Q3 2023, with strong Consumer Services performance counterbalancing the effects of the market environment returning to normal conditions and challenges posed by regulation to Upstream and Downstream
• Windfall taxes across the CEE region continue to take a heavy toll on results, amounting to half of clean CCS EBITDA in the first three quarters of 2023, or USD 1,061mn since the beginning of the year 2023 until the end of Q3 2023
• Downstream Clean CCS EBITDA came in at USD 469mn in Q3 2023, a 37% decrease compared to the same period in 2022, as a result of higher refining margins, narrowing gap between the market price of Brent and Ural crude and the negative contribution from the petrochemicals segment
• Upstream EBITDA stood at USD 195mn in Q3 2023, almost doubling compared to Q2 2023, courtesy of lower windfall tax duties in the third quarter, despite a slight decrease in production
• Consumer Services EBITDA delivered strong results during the driving season, with EBITDA reaching USD 250mn in the third quarter of 2023, on the back of organic and inorganic effects
• MOL raises its full year 2023 EBITDA guidance to approximately USD 2.8bn from the previous USD 2.5bn

Budapest, 10 November 2023 – MOL Group today announced its financial results for Q3 2023, down by 33% compared to the same period last year to USD 976mn in Q3 2023. Government takes remain an important driver of the results, amounting to half of clean CCS EBITDA during the first three quarters of 2023, including a new CO2 tax introduced in Hungary retrospectively from 1 January, 2023. Downstream and Upstream remained under pressure by market conditions, mitigated by strong results delivered by Consumer Services. As a result, clean CCS EBITDA in the period between Q1 and Q3 2023 arrived at USD 2.1bn allowing MOL to raise its full year 2023 clean CCS EBITDA guidance to approximately USD 2.8bn from the previous USD 2.5bn.

Chairman-CEO Zsolt Hernádi commented the results:

“I am proud that we have been able to maintain good performance despite the heavy regulatory environment and market pressures. This quarter we were able to mitigate the effects of negative external conditions with our improving refinery margins and strong consumer demand for our fuel products. We are able to raise our EBITDA guidance as we remain optimistic that our crisis-resilient, integrated business model and efficient operation will counterbalance the volatile market and regulatory conditions. We are also committed to continue our transformation journey as well live up to the elevated expectations with regards to our role in the supply security of Central and Eastern European region.”

Upstream EBITDA in Q3 2023 increased by 97% compared to the previous quarter, reaching USD 195mn, courtesy of a lower windfall tax duty as USD 122mn worth of tax contribution was recognised in Q2. Furthermore, royalty rates in Hungary are set to decrease from 1 September 2023, with a positive impact expected on Q4 2023 results and beyond. Hydrocarbon production in Q3 2023 decreased slightly due to temporary events, arriving at 90.1 mboepd on average during the first three quarters, with the 2023 production guidance remaining at approximately 90 mboepd for 2023.

Downstream Clean CCS EBITDA recovered against the previous quarter due to supporting refinery margins and the impact of lower windfall taxes, amounting to USD 469mn in Q3 2023. Nevertheless, the result represents a 37% decrease compared to the same period last year as a result of higher refinery margins, the narrowing of the Brent-Ural spread and the negative contribution from petchem. Windfall taxation in Central and Eastern European countries continued to hit the segment’s profitability in during the third quarter of 2023 with the freshly introduced CO2 tax in Hungary, while petrochemical market environment remained unfavourable and contributed negatively to CCS EBITDA.

Consumer Services delivered encouraging results, with EBITDA amounting to USD 250mn in Q3 2023, a 107% increase compared to the same period last year. Besides easing price cap regulations and supporting fuel margins, the result came predominantly on the back of inorganic effects driven by the expansion of MOL’s networks in Poland and Slovenia, adding almost 400 million litres to sold volumes during the third quarter of 2023. The result was also supported by strong consumer demand, the further expansion of non-fuel contribution, as well as the success of our MOL Move loyalty program, reaching over 1 million registrations in Hungary and over 700 thousand in Poland.

About MOL Group

MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemical plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of more than 2400 service stations across 10 countries in Central & South-Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 7 countries and assets in 10 countries.

MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central-and Eastern Europe.

Press contact:

@: internationalpress@mol.hu

• Clean CCS EBITDA amounted to USD 411mn in Q2 2023 and USD 1,125mn in H1 2023, a result affected by the external macro environment and government takes in Central and Eastern Europe
• Upstream EBITDA came in at USD 99mn in Q2 2023, hit by windfall taxes, weakening hydrocarbon prices and production outage in Kurdistan
• Downstream CCS EBITDA resulted in USD 102mn in Q2 2023 due to the regulatory impact, margin pressure in petchem and less favourable macro in refining
• Consumer Services EBITDA increased significantly year-on-year to USD 175mn in Q2 2023, due to easing price cap regulations and better non-fuel performance
• The estimated impact of total extra government takes in CEE amounted to roughly USD 600mn in Q2 2023
• EBITDA guidance for full-year 2023 is set to approximately USD 2.5bn

Budapest, 4August 2023 – Today MOL Group announced its financial results for Q2 and H1 2023. In the first six months MOL Group delivered USD 1,125mn EBITDA while in Q2 the EBITDA reached USD 411mn. Both Downstream and Upstream results were hit by worsening macro conditions and upheld massive government levies, including extra taxes and extra mining royalty fees. Moreover, 2nd quarter results were also distorted by a new revenue-based extra tax in Hungary amounting to USD 315mn for full-year 2023, recognised fully as a one-time expense in Q2. Consumer Services segment rebounded from last year’s lows and produced almost 43% of MOL Group’s total EBITDA, partly mitigating the effect of the adverse external environment. MOL Group sets its EBITDA guidance for full-year 2023 to approximately USD 2.5bn.

Chairman-CEO Zsolt Hernádi commented the results:

“The macro environment was not good enough to counterbalance the negative effects of governments’ interventions in the CEE region that have no doubt left their marks on our results in the first half of the year and especially in the 2nd quarter of 2023. The current level of governments’ takes – unless these extraordinary measures are phased out in the near future – will deteriorate MOL Group’s competitiveness and burden our cash flow generation needed for our investment plans. Disregarding the negative external effects, MOL Group’s operational performance was robust, the businesses continued with their strategic investments and MOL Group also managed to launch its new waste management business line.”

Upstream EBITDA declined to USD 99mn in Q2 2023 and came in at USD 382mn in H1 2023, representing 83% and 65% decrease in comparison with the same periods last year. Simplified free cash flow generation of the division practically disappeared in Q2 2023, due to the extra revenue tax and extra mining royalty levied by the Hungarian government, and decreasing hydrocarbon prices had a negative effect on the results as well. Oil and gas production volume dropped by 5 percent in Q2 year-on-year, as production in the Shaikan field in Iraqi Kurdistan has been halted due to the export pipeline shut throughout the quarter. As a result of the extraordinary efforts in line with MOL’s commitment to regional supply security, production in Hungary rose by 6.5% year-on-year in the quarter, bringing group-level H1 production volumes to 91.6 mboepd, well above the production guidance.

Downstream Q2 2023 Clean CCS EBITDA diminished to USD 102mn, while the half-year result amounted to USD 487mn. The significant decrease in the 2nd quarter was driven by extra taxes such as the revenue-based extra tax one-off expense, and the weak petchem margin combined with demand and price pressure. Motor fuel demand declined by 12% in Hungary compared to Q2 2022 since the price cap boosted consumption in the base period, while demand increased in other CEE countries, especially in Croatia (+8%); overall, total product sales remained flat for the Group.

Consumer Services Q2 2023 EBITDA almost quadrupled year-on-year, reaching USD 175mn, bringing the division’s H1 results to USD 301mn. Easing of the retail price cap regulations in the Central and Eastern European region, further expanding non-fuel contribution and excellent internal performance were the main drivers of the increased results. At the same time, Q2 2023 sales volumes increased by 16% year-on-year, supported by more than 200mn litres of positive inorganic impact of the Lotos acquisition in Poland, while fuel volumes sold increased in most countries except Hungary, where demand normalised after the cancellation of price caps. The number of Fresh Corner sites rose to 1,180 in Q2 2023 from 1,103 in the same period last year.

Gas Midstream EBITDA rose significantly year-on-year in Q2 2023 to USD 60mn as cross-border capacity demand have strengthened, bringing H1 results above USD 139mn. Due to the lower gas purchase prices than in the same period last year, decreased operational costs also contributed to the good results.

About MOL Group

MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 24,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemical plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of almost 2400 service stations across 10 countries in Central & South-Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 8 countries and exploration assets in 10 countries.

MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central-and Eastern Europe.

Press contact:

@: internationalpress@mol.hu

The MOL Group has entered into a partnership agreement with the EHF Marketing, so with the start of the 2023/24 club handball season, the company will be the official partner and supporter of the EHF Men's Champions League. In one of the most prestigious club events in handball sport, the best 16 teams in Europe compete in 132 matches over 18 weeks.

The contract is for three years, until the end of the 2025/2026 season. Teams from MOL Group countries such as Hungary, Croatia, Romania, Slovenia and Poland also participate in the cup series. Sports fans can expect extraordinary matches in all european countries, as this league is the premium championship series of the EHF, in which only the best European teams participate.

“We are delighted to welcome MOL Group to the flagship European men’s club handball competition. With their strong and consistent impact, the MOL Group will perfectly mirror the go-to-market strategy, which EHF Marketing introduced last summer. With this new partnership we aim to set sponsorship trends of the present decade such as storytelling, authenticity and strong narratives, based on joint objectives to engage with the handball community.” – said David Szlezak, EHF Marketing Managing Director.

“As a regional company, we believe that sponsoring sports is an effective tool for reaching communities, as the love of sports is shared by all of us, and with that we can reach masses at such a cross-border, prestigious, international event. Few things carry as many good, supportive messages as sports: incredible effort, fair play, teamwork, and what is at least as important: sport can create unity - these are values that the MOL Group also proudly represents.” – stated Peter Pantl, Group Corporate Communications & Marketing Vice President.

In addition, the MOL group will make its debut at the TruckScout24 EHF FINAL4 2023 event held on June 17-18, before the start of next year's season, so handball fans can see the MOL logo in the Cologne stadium and in front of the TVs.

About MOL Group

MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemicals plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of almost 2500 service stations across 10 countries in Central & South Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 8 countries and exploration assets in 10 countries.

MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central-and Eastern Europe.

About EHF Marketing GmbH

EHF Marketing GmbH is the marketing arm and subsidiary of the European Handball Federation. The company works closely with marketing and media partners, as well as with Europe’s leading clubs to release the full potential of the sport on the international sports market. The EHF Marketing GmbH is responsible for the exploitation, organisation and promotion of the European club handball competitions including the Machineseeker EHF Champions League, the EHF Champions League Women and the EHF European League.