Pressemitteilungen

Budapest, 25 October 2021 – MOL Group was disappointed to learn about the ruling made by the Croatian Supreme Court in the Sanader trial, upholding the first instance conviction of the Zagreb County Court. Despite the fact that all previous decisions of both the Hungarian authorities and the international arbitration commenced by the Croatian Government found that neither MOL, nor any of its officers had committed a criminal offence. Zsolt Hernádi, Charman-CEO of MOL Group plans to turn to the Croatian Constitutional Court in response to the serious injustices during the Croatian proceedings.

The unfair proceedings motivated by economic interests have been dragging on for over 10 years in Croatia, despite the Croatian Constitutional Court’s decision in 2015 stating that the former prime minister was convicted at the cost of serious violations of the law. Already at this point, the Constitutional Court pointed out multiple substantial procedural failures and remanded the matter for retrial. Since, failing to meet even the minimum requirements for a fair trial, the present proceedings involved even more alarming and obvious violations of rights, it is our conviction that the new ruling will also fail to stand up to Constitutional Court review. This view is supported by the 2018 decision of the Budapest Court of Justice, which found a risk of violation of the right to a fair trial and of the impartial assessment of the case in the Croatian proceedings. As a reminder, the international arbitration proceeding initiated by Croatia concluded with the verdict that The Tribunal has come to the confident conclusion that Croatia has failed to establish that Zsolt Hernádi did in fact bribe Sanader.

MOL maintains its earlier stance, firmly rejects allegations of improper business conduct and continues to defend himself by all means against unfounded allegations of crime. The Chairman-CEO continues to enjoy the full confidence and support of MOL Plc.’s Board of Directors. MOL’s INA strategy and commitment to a corporate governance serving INA’s best interests remain unchanged.

Timeline

MOL acquired its first 25 percent stake in INA in 2003, followed by another purchase of an additional 22.15 percent in late 2008, as well as reaching an agreement with the Croatian government about assuming control over the company. Next, MOL acquired further stock on the market, and currently holds a 49.08 percent stake in the company.

In 2011, the anti-corruption and organised crime agency of the Public Prosecutor’s Office (USKOK) in Zagreb filed charges against former Croatian prime minister Ivo Sanader for receiving a bribe from Zsolt Hernádi. In 2013, USKOK also pressed charges against Zsolt Hernádi. In response to the allegations, Hungarian law enforcement also started its own investigation. In July 2011, the Central Bureau of Investigation of the Hungarian Chief Public Prosecutor’s Office launched an investigation against an unknown perpetrator on suspicion of the criminal offence of bribery intended to induce dereliction of duty in international relations. The Chief Prosecutor’s Office found that no criminal offence had been committed in the interest of MOL and by the executives of MOL, and in the absence of any criminal offence, discontinued the investigation.

Croatia had already sought remedy from the United Nations Commission on International Trade Law (UNCITRAL) in the matter in 2014, which reached a decision in December 2016. The UNCITRAL ruled that Croatia was unable to prove that MOL (or Zsolt Hernádi) gave a bribe to Ivo Sanader, underlining that the key witness, Robert Jezic was not credible, and the Croatian courts had shown partiality in deciding the case.

The consolidated lawsuit against former Croatian head of government Ivo Sanader and MOL Chairman-CEO Zsolt Hernádi accused of bribing him, was brought before the Zagreb County Court in the autumn of 2018. In December 2019, the court handed down guilty verdicts, sentencing Ivo Sanader to six years and Zsolt Hernádi to two years. The independent legal observers following the trial on site (judge Kai Ambos, professor at the Georg-August University in Göttingen and Lord David Anderson, a member of the Bar of England and Wales) believed that the Zagreb court violated the EU’s norms regarding the right to fair trial and accused the Croatian prosecutors of partiality in the case. In July 2021, the defence filed a detailed appeal with the Croatian Supreme Court, which has now upheld the ruling of the Court of First Instance.

• Clean CCS EBITDA highest ever at USD 893mn in Q2, 153% more than a year ago
• H1 Clean CCS EBITDA reached USD 1,559mn, 60% higher year-on-year
• Upstream Q2 EBITDA tripled and Downstream result more than quadrupled compared to the second quarter of 2020
• Consumer Services reached its highest-ever Q2 EBITDA, USD 164mn
• All strategic projects progressed well, organic capital expenditure was higher both Q2 and H1 than last year, reaching USD 356mn in Q2, as utilization normalized
• Group-level simplified free cash-flow increased significantly in H1 compared to last year to USD 922mn as all core segments generated positive contribution in the first half year and well exceeded even the pre-pandemic performance level
• Full-year EBITDA guidance upgraded to „aroundUSD 3 bn” from „around USD 2.3 bn”.

Budapest, 6August 2021 – Today MOL Group announced its financial results for H1 and Q2 2021. In the first six months MOL Group delivered USD 1,559mn EBITDA while in Q2 Clean CCS EBITDA jumped by 153% year-on-year to an all-time high USD 893mn, driven by stronger oil macro, record high petrochemical margins and the easing of Covid-related restrictions with a subsequent positive effect on sales volumes. Strong Q2 EBITDA allows MOL Group to raise its 2021 full year guidance to „around USD 3 bn” from „around USD 2.3 bn”.

Chairman-CEO Zsolt Hernádi commented the results: “I am very proud to announce that we posted the strongest quarter in MOL Group’s history. Our resilient integrated business model not only managed to successfully navigate the challenges posed by Covid, but also captured the strong commodity cycle we are experiencing. This means we delivered USD 893mn Clean CCS EBITDA during the second quarter, which in turn means we are upgrading our guidance for the full year to around USD 3bn from the previous USD 2.3bn. Looking ahead, I am very pleased with the progress we are making on key projects as we execute our strategic plans on our path towards 2030 and beyond.”

Downstream Q2 Clean CCS EBITDA increased by 305% year-on-year to USD 447mn, boosted by very strong petrochemical performance while refining margins gradually recovered from the lows of Q2 2020. In H1 2021, Downstream generated 73% better result than in the same period last year. The strong Downstream result was primarily driven by outstanding performance in petrochemicals, which saw its integrated petchem margin reaching an all-time high of EUR 1035.8/t during April. Downstream became the largest cash contributor to the Group in Q2 with USD 307mn free cash-flow generation As for the ongoing investments, the polyol project exceeded 84% overall completion at the end of Q2.

Upstream EBITDA jumped to USD 336mn in Q2, amounted exactly three times higher than a year ago and H1 result came in at USD 645mn that means a 117% increase since the same period last year, driven by the continuously higher oil and gas prices. Oil and gas production volume decreased slightly by 5% compared to Q1 2021 to 111.2 mboepd, due to the maintenance in UK, natural decline in the UK and CEE and lower ACG net entitlement production affected by the higher oil prices. Upstream is still one of the largest cash contributors of the Group, as simplified free cash flow rose year-on-year, as well as quarter-on quarter to USD 230mn in Q2.

Consumer Services reached an all-time high Q2 EBITDA in Q2 2021, increasing by 48% year-on-year to USD 164mn. The excellent performance resulted in strong free cash-flow, generating USD 230mn in the first half of the year, 50% more than a year ago. The easing of pandemic-related lockdowns and restrictions in MOL’s core CEE countries had a positive effect on sales volumes and non-fuel margin. Non-fuel margin increased by 34% in Q2, driven by strong performance across a broad category range in the Hungarian, Romanian, Czech and Slovakian markets. Total sales volumes increased by 25% year-on-year in Q2 as a result of increased travel activity following easing of restrictions. In Q2 2021, MOL together with its subsidiary INA, agreed to acquire OMV Slovenia, including 120 service stations and the wholesale operation. The number of Fresh Corner sites rose to 1,008 in Q2 from 984 in Q1 2021.

Gas Midstream Q2EBITDA fell by 48% to USD 23mn compared to the same period last year, as both transit revenues and regulated income fell as a result of materially decreased crossborder capacity and transmission demand. Domestic transmission volumes increased by 32% in Q2 year-on-year, while export transmission volumes (to Ukraine, Romania, Croatia and Slovakia) decreased significantly by almost 87%.

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 2000 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 9 countries and exploration assets in 14 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 Group acquires further 92.25% stake in OMV Slovenija d.o.o. for 120 service stations and wholesale operations in Slovenia
• From current 53 service stations in Slovenia, MOL Group increases its operation to 173 retail units
• MOL delivers on its 2030+ Shape Tomorrow Strategy in Consumer Services, presenting the third retail acquisition in the last 3 months

Budapest, 08 June 2021 –MOL Group reached an agreement with OMV to acquire OMV’s 92.25% stake in OMV Slovenija d.o.o., in which INA d.d. already holds a 7.75% minority stake, from OMV Downstream GmbH as direct shareholder. The agreed purchase price is EUR 301 mn (100% share of OMV Slovenija).

The transaction includes 120 service stations across Slovenia. OMV Slovenija d.o.o. operates in the country under 3 brands: OMV (108); EuroTruck (4); and Avanti / DISKONT (8). MOL Group and INA will become the 100% owner of the wholesale business of the acquired company, as well.

With 48 MOL and 5 INA-branded service stations in Slovenia, MOL Group is currently the nr. 3 retail market-player.

The transaction is subject to merger clearance.

The agreement fits into the Group’s “SHAPE TOMORROW” 2030+ updated long-term strategy, which places a special emphasis on the development of Consumer Services.

“This step is in line with our strategic goals to further expand our service station network in existing and potential new markets in Central and Eastern Europe. By 2025, MOL Group would like to reach 2200 service stations, potentially more, if more good opportunities rise. I believe that Consumer Services has a great potential inside the energy transition. Our service stations are not just fuel stations anymore. With constant development and digitization, shaping future consumer and mobility trends, MOL offers convenience as we aim to help people on the move, regardless of what powers the customer’s mode of transport. Furthermore, our integrated business model and accelerating growth enable us to provide financial resources for developing sustainable solutions and boosting circular economy in the region. Slovenia is not a new market to us, in the last 25 years we had the opportunity to introduce top-quality fuels and services, and MOL Slovenija became a success story. With this step, together with INA we become a major player in Slovenia” -said MOL Group Chairman-CEO Zsolt Hernádi.

Acquisition of OMV Slovenija is the third announced deal since February 2021, when MOL Group updated its long-term strategy.  On the way to deliver on it, MOL Group recently published the acquisition of 100% of Normbenz Slovakia s.r.o. by member company Slovnaft that includes 16 service stations in Slovakia operated under the Lukoil brand. MOL has also concluded a deal with Marché International AG to buy the company that operates 9 restaurants in Hungary under the Marché brand.

MOL entered the Slovenian market in 1996 with the aim to establish a retail network and wholesale operation. By 2011 the company operated 31 service stations including acquired TUŠ network. In 2016, 11 Agip service stations joined the MOL-portfolio. In parallel with greenfield investments and the integration of 5 INA stations, MOL Slovenija currently operates 53 service stations.  Since 2016, all 48 MOL-branded service stations were reconstructed with introduction of Fresh Corner concept, offering freshly prepared food and high-quality coffee for people on the move.  

Currently MOL Group has 1941 service stations in 9 countries under several brands. 466 in Hungary, 434 in Croatia, 304 in the Czech Republic, 254 in Slovakia, 243 in Romania, 106 in Bosnia and Herzegovina, 70 in Serbia, 53 in Slovenia and 11 in Montenegro. MOL Group holds market leading position in Hungary, Croatia, Slovakia and in Bosnia and Herzegovina, second largest market player on the Czech market, and the third largest in Slovenia, Romania and Montenegro.

About MOL Group: MOL Group is an integrated, international oil and gas company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 26,000 people and a track record of more than 100 years in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 9 countries and exploration assets in 14 countries. 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 2000 service stations across 9 countries in Central & South Eastern Europe.

About INA Group: INA Group is the leading oil company in Croatia and a major regional player in oil and gas exploration and production, oil processing, and distribution of oil and oil derivatives. INA Group consists of several affiliates, entirely or partially owned by INA, d. d. The Group is based in Zagreb, Croatia. Apart from Croatia, INA also conducts its oil and gas exploration and production activities in Angola and Egypt. Oil is processed at INA’s refinery in Rijeka, while sustainable alternatives are being developed at an industrial location in Sisak. INA’s regional retail network consists of more than 500 retail locations in Croatia and neighbouring countries. INA Group is a member of MOL Group.

• MOL Group delivered Clean CCS EBITDA of USD 664mn in Q1 2021, 7% higher than last year in the same quarter, reflecting the stronger oil-and gas prices and the record high petrochemical margin
• Upstream EBITDA increased 66% year-on-year in Q1 to USD 307mn, driven by significantly higher oil and gas prices and by the ACG-contribution
• Downstream Clean CCS EBITDA declined by 14% year-on-year to USD 254mn, as a result of lower refinery volumes and margins, partly offset by very strong petrochemical performance
• Consumer Services reached its highest ever Q1 EBITDA at USD 115mn, despite seasonality and third wave travel restrictions
• Board of Directors on behalf of the 2021 Annual General Meeting of MOL Plc. decided a total sum of HUF 75.875bn shall be paid out as dividend in 2021, for the 2020 financial year

Budapest, 07May 2021 – Today, MOL Group announced its financial results for Q1 2021. MOL Group delivered USD 664mn Clean CCS EBITDA in Q1 2021, 7% higher than last year in the same quarter, despite the third wave of the Covid-19 pandemic and the subsequent travel restrictions and lockdowns in Central and Eastern Europe. Strong oil- and gas prices, record high petrochemical margin and the good performance of Consumer Services contributed to the results. MOL Group produced USD 383mn simplified free cash-flow, 17% more than a year ago.

Chairman-CEO Zsolt Hernádi commented on the results: „We delivered over USD 660mn EBITDA in Q1 2021, a great achievement considering the pandemic situation during these past months. This strong performance is the product of previous strategic initiatives combined with our integrated resilient business model. I am particularly pleased to see a good set of results in both Petrochemicals and Consumer Services, the two important pillars of our transformational strategy.

Exactly one year ago I said we entered a period of uncertainty, but we at MOL definitely learned how to adapt and emerged stronger from the crisis. With the vaccination and gradual ease of lockdowns in our region, we have reasons to be optimistic. I am glad that the dividend payment was resumed after last year’s cancellation, as we share our good results with our investors.

 Q1 proved to be another milestone in the history of the Group. We published our 2030+ Strategy ‘Shape Tomorrow’ which will further accelerate the pace and scale of our transformation to be a key player in the low carbon, circular economy in CEE. With these results, I am confident that we have a strong foundation from which we will be able to shape tomorrow’s economies together with our stakeholders.”

• Upstream EBITDA reached USD 307mn, an increase of 66% compared to last year’s Q1 result and 70% higher than in Q4 2020. The good performance was driven by the continuously higher oil and gas prices and the contribution of the ACG asset in Azerbaijan. The 116.7 mboepd production volume was slightly lower than in the previous quarter, but it was 6% higher year-on-year, due to volumes boosted by ACG. Simplified free cash-flow contribution of Upstream doubled in comparison with Q1 2020 to USD 218mn.
• Downstream Clean CCS EBITDA came in at USD 254mn, 14% lower than last year in the same period, as a result of lower refinery volumes caused by mobility restrictions and the lower refinery margins. This decline was partly offset by the strong petrochemical performance, as the integrated petrochemical margin increased by 74% year-on-year, reaching EUR 873/t during March 2021. The polyol project exceeded 79% overall completion at the end of Q1.
• Consumer Services EBITDA increased by 30% in USD terms to highest-ever Q1 result, USD 115 mn, mostly driven by higher fuel and non-fuel contribution and supported by lower operating expense. Lower capex lead to 45% higher free cash-flow generation than a year ago. This good performance was reached despite the lower fuel sales volumes caused by the third wave of pandemic-related travel restrictions in CEE. The number of Fresh Corner sites rose to 984 in Q1 2021 from 955 at the end of 2020. In Q1 2021, MOL concluded a deal with the subsidiary of Marché International AG to buy the company that operates 9 restaurants connected to service stations in Hungary under the Marché brand.
• Gas Midstream EBITDA fell by 33% year-on-year in Q1 2021 to USD 48mn, as both transit revenues and regulated income fell as a result of materially decreased cross border capacity and transmission demand

About MOL Group

MOL Group is an integrated, international oil and gas 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 in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 9 countries and exploration assets in 14 countries. 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 2000 service stations across 10 countries in Central & South Eastern Europe.

Press contact

@: internationalpress@mol.hu

• The Board of Directors of MOL Group approved consolidated financial statements of MOL Group for 2020

• The Board of Directors decided to pay a dividend of HUF 75,875,000,000

• MOL Group Integrated Annual Report for 2020 can be accessed at molgroup.info

Budapest, 15 April 2021 – Due to the epidemic situation, MOL held an Extraordinary General Meeting instead of the Annual General Meeting, where the Board of Directors decided on all proposals and proposed resolutions in the agenda items of the AGM. The Board of Directors approved the payment of a dividend of HUF 75,875,000,000 thereby reinstating the base dividend at a level similar to previous years. The Board of Directors decided to pay a dividend of HUF 75,875,000,000. The Board of Directors also approved the financial report and consolidated financial statements for the year 2020.

While in 2020 due to the significant uncertainty caused by the coronavirus pandemic and the unpredictability of the external environment, the Board of Directors of MOL Group decided to retain the payment of dividends, now having considered the results of the financial year 2020, the strength of the balance sheet, future investment plans and uncertainties regarding external market conditions the Board of Directors decided to reinstate base dividend payments at a level similar to previous years’ trend. The Board of Directors therefore approved the payment of a dividend of HUF 75,875,000,000 for the financial year 2020.

The Board of Directors approved the re-election of JUDr. Oszkár Világi as a member of the Board of Directors. Ivan Miklos and Márton Nagy were also re-elected as members of the Supervisory Board and Audit Committee. Péter Kaderják and Dr. Lajos Dorkota were elected as members of the Supervisory Board.

Zsolt Hernádi, Chairman and CEO of MOL Group, said at the extraordinary general meeting: “It has been a tough year for us, but we have proven to be strong and flexible, and we already see the light at the end of the tunnel. The pandemic and the economic crisis posed unprecedented challenges to the company, but MOL handled the situation and closed 2020 stronger. Thanks to our financial strength and successful operations, we will be able to resume the payment of dividends to our shareholders this year, as we accelerate our transformational efforts with an updated strategy. We will continue the transformation we began in 2016 and are ready to be the regional leader in the future low carbon circular economy.”

MOL Group generated USD 2.05 billion (HUF 630 billion) Clean CCS EBITDA in 2020, and although the Group's results decreased by 16% compared to 2019 affected by the pandemic and the economic crisis, it is still above the post-COVID guidance (of around USD 1.9 billion). The operations were running uninterrupted even amidst the depth of the crisis, and MOL Group was able to continue its strategic investments, albeit at a lower pace due to due to the mobility restrictions. The key investment in Downstream, polyol project exceeded 75% overall completion at the end of Q4 2020. Upstream production volume increased by 8% in 2020 to 120 mboepd thanks to the contribution of ACG. Last year the Consumer Services segment generated an all-time high USD 510mn EBITDA, 8% higher than in 2019.

• MOL started to deliver on its recently updated 2030+ Strategy in Consumer Services
• Slovnaft, member of MOL Group acquires 16 service stations in Slovakia, currently operated under Lukoil brand
• MOL to buy the company operating Marché restaurants in Hungary

Budapest, 24 March2021 – MOL Group announces the acquisition of 100% of Normbenz Slovakia s.r.o. by Slovnaft that includes 16 service stations in Slovakia operated under the Lukoil brand. MOL has also concluded a deal with Marché International AG to buy the company that operates 9 restaurants in Hungary under the Marché brand.

The agreements fit the Group’s “SHAPE TOMORROW” 2030+ updated long-term strategy, which lays special emphasis on the development of Consumer Services.

“Further develop the food and convenience offers and network expansion is both part of our updated strategy and serves our aim to become regional leader in fuel and convenience retailing. In order to reach that, we seek new opportunities with a new determination . Welcoming the 16 new service stations in Slovakia gives us the opportunity to expand our presence in the country and to introduce our existing Fresh Corner concept throughout the new Slovnaft stations. The acquisition of the company operating Marché restaurants in Hungary creates new perspectives for MOL as well, as it can take its gastro offer to a whole new level and reach a wider audience with its retail services.” - said Péter Ratatics, Executive Vice President for Consumer Services of MOL Group.

"We are expanding Slovnaft's retail network in Slovakia to get closer to our customers. The acquired filling stations will be rebranded and they will provide people on the roads with the high standard of products and services they expect from our network," said Timea Reicher, Retail Director of Slovnaft, a.s."

The acquisition of 100% of Normbenz Slovakia s.r.o. includes 16 Lukoil branded fuel retail stations in Slovakia with a countrywide coverage. The stations provide good complement for Slovnaft’s network in the country, which currently consists of 254 service stations. The network will continue to operate under the Slovnaft brand. Slovnaft’s intention is to introduce the Fresh Corner concept after the takeover, with premium gastro products and other services that are already offered in the Slovnaft network. The transaction is subject to competition clearance by the Antimonopoly Office of the Slovak Republic (“AMO”).

Seven of the acquired nine restaurants of Marché International have been integral parts of the MOL service stations for over 10 years. With their freshness and à la minute preparation concept, the restaurants and their employees provide premium quality on the European market. Over the years MOL has gained regional experience and expertise, and as a result the company can now operate the restaurants as part of its own business, with the intention to include them into the Fresh Corner concept. The acquisition is subject to the approval of the Hungarian Competition Authority (“GVH”).

The Fresh Corner concept was launched in 2015, and as a result, customers on the road can enjoy quality coffee, hot dogs, fresh sandwiches and pastries at the service stations in addition to filling up their car. The chain now has 955 outlets and the concept greatly contributed to the record result of the Consumer Services segment in 2020 – increasing the EBITDA of the Group by USD 510 million.

About SLOVNAFT Group

SLOVNAFT Group is an integrated refining and petrochemical company based in Bratislava, Slovakia. The group’s key company is SLOVNAFT, a.s., operating one of the most complex refineries in Europe and processing up to 6 million tons of crude oil annually. More than half of Slovnaft´s production is being exported to Central and Western Europe´s markets. Slovnaft operates the largest network of 254 service stations in Slovakia. Modern Fresh Corner stores, which serve all customer’s needs on roads are part of 232 service stations. The company is among the leaders in CSR and corporate philanthropy in Slovakia, significantly supporting sports, culture, education, youth and ecology projects. Forbes Magazine ranked the Slovnaft brand among the most valuable Slovak brands. SLOVNAFT Group is a member of international MOL Group.

About MOL Group

MOL Group is an integrated, international oil and gas 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 in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 9 countries and exploration assets in 14 countries. 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 2,000 service stations across 10 countries in Central & South Eastern Europe.

Press contact: @internationalpress@mol.hu

• MOL started biofuel production at its Danube Refinery, delivering on its recently updated strategy “SHAPE TOMORROW” MOL Group 2030+ Strategy

• Bio feedstock, like vegetable oils, used cooking oils and animal fats is co-processed with fossil components during fuel production to create more sustainable diesel

• MOL aims to gradually increase the share of waste and residue raw materials in the process, in line with its updated strategy

• MOL will spend USD 1bn in the next five years on new, low-carbon and sustainable businesses to become a key player in the Central and Eastern European circular economy

16 March, Budapest. – Following several years of research and development MOL has stepped up the value chain and has become a biofuel producer, through the realization of an investment in the Danube Refinery. Bio feedstock will be co-processed together with fossil materials increasing the renewable share of fuels and reducing up to 200,000 tons /year CO2 emission without negatively affecting fuel quality.

“MOL Group has been a biofuel user by purchasing more than 500.000 tons of biofuels (bioethanol and biodiesel) for blending. With this investment, we have started to produce sustainable diesel for the first time within MOL Group and we became biofuel producers. The benefits are numerous, as we produce more sustainable fuel, we will also help the circular economy by recycling waste. In line with our recently updated strategy, “SHAPE TOMORROW” we are planning to produce 100.000+ tons of biofuel by 2030” – said Gabriel Szabó, Executive Vice President of MOL Group Downstream.

During co-processing at the Danube Refinery, bio-feedstock is processed together with the fossil material in the production of diesel fuel. Vegetable oils, used cooking oils and animal fats can also be used for this purpose. As a result, the produced gasoil is partly renewable, without any quality changes compared to diesel produced entirely from crude-oil. The main advantage of this innovative method is that the resultant biodiesel can be still blended with a maximum 7 percent of bio-feedstock based fuel, in line with diesel standards, allowing the bio-share of the gasoil to be higher.

One of the main goals of the European Union, and MOL Group, is to achieve net-zero CO2 emissions by 2050. The renewable share obligations of transportation fuel are continuously increasing, accordingly the biocomponent content expectations have also increased across MOL Group's fuel markets, which have so far been met mainly by blending bioethanol and biodiesel.

MOL started co-processing as an R&D project in 2012 based on the research results of Pannon University. Types and quality requirements of processable raw materials were determined and the investment was launched in 2018. This included the necessary infrastructure development for storing and processing the new bio-materials. The trial operation of the new process started in March 2020 and has been operating regularly since May.

The bio-component produced using this process has significantly higher CO2 saving potential than other type of biofuels produced from the same feedstock. This project means that up to 200,000 tons of annual CO2 emission will be cut, equivalent to a city of 200.000 inhabitants entirely switching to solar energy for heating. The target is to further expand the type of waste that can be used as feedstocks in the processing to achieve even better CO2 savings from the product.

One of the cornerstones of the MOL Group 2030+ Strategy is to play a key role in shaping the low-carbon circular economy with investments in new businesses such as waste integration and utilization, recycling, carbon capture, utilization and storage (CCUS), advanced biofuels and potentially hydrogen-related opportunities.

In the next five years, MOL will spend USD 1bn on new, low-carbon and sustainable projects to become a key player in CEE in the circular economy and to get closer to its net-zero CO2 emitter goal by 2050. MOL aims to transform its Downstream segment into a highly efficient, sustainable, chemicals-focused leading industry player. 

• MOL builds on the changes of the external environment and updates its 2030 strategy, integrates it with sustainability goals.
• MOL keeps key initiative as they proved to be progressive and successful, but now accelerate business transformation 
• MOL will transform its traditional businesses for the low-carbon future by making them even more efficient and focused. Downstream will become a highly efficient, sustainable, chemical focused leading downstream player, Consumer Services will become a best in class digitally driven consumer goods retailer, and Upstream will also be a more efficient and sustainable, value-generating strategy pillar. 
• Updated strategy, “SHAPE TOMORROW” MOL Group 2030+ focuses on CO2 reduction, efficiency and the circular economy 

• MOL speeding up its transformation to become a net-zero CO2 emitter by 2050  
• By 2030, every second USD will be spent on sustainable projects, while 100% of spending will be green by 2050 
• MOL will spend USD 1bn in the next five years on new, low-carbon and sustainable businesses to become a key player in Central and Eastern Europe circular economy: waste integration and utilization, carbon capture, utilization and storage, advanced biofuel production and hydrogen-related opportunities  

Budapest, 24 February 2021 - The Board of Directors reviewed and approved “MOL Group 2030+”, an update of the company’s long-term strategy – which was originally announced in October 2016 – fully integrated with a new sustainability strategy and complemented with a longer-term vision and ambitions beyond 2030. 

”The MOL 2030 long-term strategy has so far proved to be progressive, credible and directionally correct. Accordingly, MOL has taken important strategic steps in the right direction over the past five years.  However, we have observed an unprecedented pace of changes around us recently, including rapid progress in the green energy transition. Our updated strategy seeks to accelerate our transition process to enhance MOL’s resilience and our ability to shape a sustainable future. We will sharpen our focus, increase our efficiency further, while seeking new opportunities with a new determination. One thing has not changed since 2016: we remain deeply committed to the transformation of our traditional fossil-fuel-based operations into a low-carbon, sustainable business model.” (Zsolt Hernádi, Chairman-CEO)

Strategic transformation directions in existing businesses confirmed. With an unchanged vision of the structural, long-term decline in fossil motor fuel demand in Europe and in CEE, MOL will continue and accelerate its fuel-to-chemicals transformation in Downstream growing to become a leading sustainable chemicals company in CEE. MOL has unchanged ambitions in Consumer Services to become a market-leading, best in class digitally driven consumer goods retailer and complex mobility service provider in the region.

“One of MOL’s core strengths lies in its resilient, uniquely balanced, integrated business model. In order to preserve this resilience and to be able to shape our future, we will have to continually adjust our business portfolio to meet the challenges of a future carbon-constrained economy.” (Zsolt Hernádi, Chairman-CEO)

Downstream: transforming into a highly efficient, sustainable, chemicals-focused leading industry player. MOL Downstream will retain its top-tier cash generation position in European refining and targets USD 1.2bn+ EBITDA by 2025, supported by an additional USD 150mn of efficiency improvement. The fuel-to-chemicals transformation will continue at full speed to reduce motor fuel yield in the refining system and to convert 1.8mn tons to petrochemical feedstock by 2030. This will be achieved through two investment cycles using highly efficient technologies and targeted start-up dates in 2027 and 2030, respectively. At the same time, MOL will increasingly integrate circular technologies into its core businesses, using bio- and waste-based streams in production, scaling up recycling and utilizing CCS opportunities with a clear focus on materially reducing the segment’s CO2 footprint. The total Downstream transformation capex may reach USD 4.5bn in the next ten years.

Consumer Services: becoming a best in class digitally driven consumer goods retailer and an integrated, complex mobility service provider by 2030 with significantly higher revenues and free cash flow. Consumer Services will materially increase its contribution to the group by reaching over USD 700mn annual EBITDA by 2025 and a cumulative simplified free cash flow of over USD 2bn in 2021-25. The segment will invest in the further development of food and convenience offerings and will continue the standardization and digitalization processes within the network. Our focus will then increasingly shift towards sales channel diversification, expanding the alternative fuels portfolio and complex mobility platforms and services.

Upstream (E&P): focus on cash generation, managed decline in CEE, approach international E&P opportunistically and invest in CCUS. Existing resources will continue to be managed to maximize cash generation and value creation with around USD 1.8bn simplified free cash flow in 2021-25 at USD 50/bbl oil prices (and assuming no inorganic reserve replacement). This requires the cost-conscious and efficient management of the CEE production decline and an active, but opportunistic approach to international E&P without setting any volumetric targets. MOL aims to utilize its expertise in the Pannonian basin geology to become a key player in carbon capture, utilization and storage (CCUS) in CEE by 2030, which will also support it becoming carbon-neutral (Scope 1 and 2).

“Sustainability and profitability are not mutually exclusive concepts; they have to go together. You cannot be sustainable without generating revenues, nor can you be profitable without focusing on how those revenues are generated; they go hand in hand. This has been evident for some time and will increasingly be clear to everyone in the future. We all want to live in a better, safer and cleaner world; and for a better and more sustainable world we need to shift to a low-carbon, circular economic model.” (Zsolt Hernádi, Chairman-CEO)

Investing in new businesses to shape a low-carbon circular economy. MOL wants to significantly increase its EU Taxonomy-aligned climate-friendly investments to exceed 50% of total capex by 2030 and to approach 100% by 2050, or earlier. MOL also wants to play a key role in shaping the low-carbon circular economy with investments in new businesses such as waste integration and utilization, recycling, carbon capture, utilization and storage (CCUS), advanced biofuels and potentially hydrogen-related opportunities. In the next five years, MOL will spend USD 1bn on new, low-carbon and sustainable projects to become a key player in CEE in the circular economy.

Significant carbon reduction targets by 2030, fully aligned 2050 ambitions with the EU Green Deal. In line with the Paris Agreement and the need for globally coordinated efforts to limit global warming and climate change, it is also the role of MOL to contribute to the decline in carbon emissions from its value chain and operated assets. Accordingly, MOL will reduce group-level emissions by 30% by 2030, make both E&P and Consumer Services carbon-neutral (in terms of Scope 1 and 2 emissions) by 2030, while Downstream emissions (Scope 1 and 2) will be reduced by 20% by 2030 (from a 2019 base) for existing operations. MOL also shares the EU’s ambition to be climate-neutral by 2050 in terms of all (Scope 1, 2 and 3) carbon emissions and wishes to actively participate in the industrial revolution required to make Europe carbon-neutral, both on its own and in partnering with others.

”The key element for the success of a large company, like MOL, is to maintain its ability to attract, develop and retain talent. Our talented people are by far our most valuable assets, and they are also the core assets of any successful economy. Managing a complex transformation as the one MOL has embarked upon requires not only a diverse and inclusive workforce. It also needs strong collaboration with our local communities, partners, regulators, ensuring the involvement of practically every layer of the society so that we can accomplish the mission of the green energy transition.” (Zsolt Hernádi, Chairman-CEO)

A comprehensive sustainability framework sets targets along all four pillars: People and Communities; Health and Safety; Integrity and Transparency; Climate and Environment. MOL sees Diversity and Inclusion as one of its key values and strategy enablers with targets to increase female participation at all levels, reaching 30% in managerial positions and focusing on broader employee wellbeing and health. Our sustainable employee engagement score will stay above 75; community engagement will intensify so that we become a trusted partner; Total Recordable Incident Rate (TRIR) will fall below 1.0 by 2025. We will instigate a new responsible procurement strategy across the group by the end of 2022; awareness of ethics and human rights will be further promoted among employees and management; and negative environmental impact (beyond CO2) will be further reduced.

“Any transformation is an inherently complex, lengthy and often painful exercise. I am convinced, however, that our refreshed long-term strategy will keep us on the right track to develop into a key player of the low-carbon circular economy, offering exciting opportunities to our employees, continuously enhancing customer experience, working constructively with our partners whilst ensuring a stable, predictable income to our investors along the entire transformation journey.” (Zsolt Hernádi, Chairman-CEO)

Financial Framework 2021-25: fully funded transition and stable, predictable shareholders remuneration, strong balance sheet. Even with conservative mid-term base macro assumptions MOL will generate sufficient operating cash flows in 2021-25 – with EBITDA rising from USD 2.3bn in 2021 to USD 2.6bn in 2025 – to cover “sustain” capex, at least USD 3.5bn strategic capex, including USD 1bn new, low-carbon, circular economy investments, and stable base dividends. Keeping a strong financial profile through a robust balance sheet and ample financial headroom remains a priority. This flexibility may be used to fund new business opportunities, including cash-generative M&A in any business lines.

About MOL Group 

MOL Group is an integrated, international oil and gas 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 in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 9 countries and exploration assets in 14 countries. 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 2,000 service stations across 10 countries in Central & South Eastern Europe.

Press contact: @internationalpress@mol.hu 

• Full-year 2020 EBITDA reached USD 2.05bn, above the latest, post-COVID guidance (of around USD 1.9bn), but decreased by 16% compared to last year, affected by the pandemic and economic crisis
• Clean CCS EBITDA came in at USD 464mn in Q4 2020, 23% lower year-on-year reflecting the weaker oil macro
• Upstream production volume increased by 8% in 2020 to 120 mboepd thanks to the contribution of ACG, yet EBITDA decreased by 34% year-on year due to the extremely weak external price environment
• Downstream Clean CCS EBITDA decreased in Q4 to USD 133mn, hit by depressed refinery margins and the usual Q4 seasonality. Full-year result was 15% lower than a year ago.
• Consumer Services EBITDA rose by 23% in Q4 2020 to USD 128mn, the segment generated an all-time high USD 510mn EBITDA in full year 2020, 8% higher than in 2019
• 2021 EBITDA guidance at around USD 2.3bn as some macro recovery expected

Budapest, 19 February 2021 – Today, MOL Group announced its financial results for 2020. Despite the much challenging pandemic and economic crisis, MOL Group generated USD 464mn Clean CCS EBITDA in Q4, bringing full-year Clean CCS EBITDA to USD 2.05bn, above the updated guidance. In a year of disruption, volatility and uncertainty, all segments generated positive simplified free cash flow that resulted in USD 636mn in 2020, higher than a year ago. Organic capex was at USD 1.41bn in 2020, in line with the guidance (up to USD 1.5bn). MOL expects 2021 EBITDA at around USD 2.3bn as macro likely recovers.

Chairman-CEO Zsolt Hernádi commented the results:

“We delivered over USD 2bn EBITDA in 2020, and while earnings were lower compared to 2019, our fast and timely reaction to the crisis allowed us to generate even stronger free cash flow than our pre-Covid guidance. This was only possible with each and every business line having cash positive operations even in a year of major disruption.

2020 was an unprecedented year with never seen challenges. I am very proud of all our colleagues, as our operations were running uninterrupted even amidst the biggest crisis, we continued to be a reliable partner of all our customers and partners and we were able to continue all our strategic investments, although unfortunately they slowed down a bit due to the mobility restrictions. Even under major stress we are not losing sight of our vision and we will be doubling our efforts in 2021 to progress with our business transformation.

We expect 2021 to be a year with some normalization and recovery, which is also behind our rising EBITDA guidance of USD 2.3bn. Our capital investments also need to catch up, so our organic capex shall be at around USD 1.7-1.9bn, once again implying a fully funded business with positive free cash flow.”

Upstream EBITDA declined in Q4 to USD 181mn, affected by technical adjustments related to ACG, MOL’s new asset in Azerbaijan. The quarter brought the segment’s full-year EBITDA to USD 689mn that is 34% lower than a year ago, as sharply lower oil and gas prices were only partly offset by the contribution of ACG that helped full-year production volumes to rise by 8% compared to last year. Proved and probable reserves increased to 364 mboepd by the end of 2020 (from 270 mboepd end-2019), reflecting the ACG contribution and net upward reserve revision in the portfolio, implying 312% reserve replacement.

Downstream full year 2020 Clean CCS EBITDA dropped by 15% to USD 740mn, reflecting the weak macro environment, while Q4 result came in at USD 133mn, hit by depressed refinery margins and the usual Q4 seasonality. Refined products sales volumes dropped by 14% compared to last year’s Q4 result, affected by the second wave of the pandemic. The polyol project exceeded 75% overall completion at the end of Q4. Due to the pandemic, MOL together with the engineering, procurement and construction contractor estimates that the project completion will be shifting to the second half of 2022 (originally in H2 2021) and as a result of the delay the total capital expenditure may increase to around EUR 1.3bn (originally EUR 1.2bn).

Consumer Services EBITDA growth accelerated in Q4 to +23% and EBITDA rose to USD 128mn compared to last year, mostly driven by higher fuel contribution and lower operating expenses. The segment generated an all-time high USD 510mn EBITDA in full-year 2020 that is 8% higher than the result in 2019.  Simplified free cash flow more than doubled in Q4 and jumped by 28% in 2020 year-on year to USD 381mn. The non-fuel concept rollout continued despite the pandemic: the number of reconstructed sites with Fresh Corners rose to 955 from 877 at the end of 2019.

The Gas Midstream segment reached USD 201mn EBITDA in 2020, 8% higher than a year ago. In Q4, EBITDA fell by 41% year-on year to USD 42mn, as a result of materially lower cross-border capacity bookings and hence lower regulated revenues, decreasing transit revenues and higher operating expenses.

About MOL Group

MOL Group is an integrated, international oil and gas company, headquartered in Budapest, Hungary. It is active in over 40 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 9 countries and exploration assets in 14 countries. MOL Group operates four refineries and two petrochemicals plants under integrated supply chain management in Hungary, Slovakia and Croatia, and owns a network of almost 2,000 service stations across 10 countries in Central & South Eastern Europe.

Press contact

@: internationalpress@mol.hu

• Clean CCS EBITDA strongly rebounded from the Q2 lows and came in at USD 610mn in Q3 2020, only 12% lower than last year.
• All segments continued to generate positive simplified free cash-flow in both Q3 and the year to date, despite the pandemic and economic crises.
• Upstream EBITDA improved in Q3 compared to Q2, but decreased by 10% year-on-year at USD 212mn, due to depressed oil and gas prices, ACG contribution partly offset the negative effects.
• Downstream Clean CCS EBITDA recovered from the Q2 lows to USD 202mn, but it was 26% under last year’s results, due to the very poor refinery margins.
• Consumer Services returned to double-digit EBITDA growth in Q3, as EBITDA grew by 14% year-on-year to USD 183mn. This segment became the strongest free cash flow contributor of the Group in the first three quarters of 2020.
• As the progression of the pandemic increases in severity within the core region, mobility restrictions and lockdowns are clouding the outlook.

Budapest, 06 November 2020 – Today, MOL Group announced its financial results for the third quarter of 2020. During the pandemic and economic crises, Clean CCS EBITDA strongly rebounded from the Q2 lows and came in at USD 610mn in Q3 2020, only 12% lower than in the same period last year. This result brought Q1-Q3 2020 EBITDA to USD 1.59bn, 14% lower year-on-year, implying full year 2020 EBITDA likely to be at the higher end of the guidance range,  around USD 1.9bn. Simplified free cash flow jumped in Q3 to USD 306mn on continued capex discipline, bringing year to date simplified free cash flow to USD 662mn, 42% higher than in the first three quarters of last year. Organic capital expenditure was down by 33% in the first three quarters, reflecting strong capex control as well as some COVID-19-related slowdown.

Chairman-CEO Zsolt Hernádi commented the results: “Earnings strongly rebounded in the third quarter from the Q2 lows, which will in all probability allow us to deliver full - year 2020 EBITDA at the higher end of our guidance range, around USD 1.9 bn. All business segments generated positive free cash flow so far this year despite the pandemic, clear evidence of the robustness and resilience of our operations. Consumer services stood out with new all-time high quarterly EBITDA in Q3, but other segments also did relatively well, despite depressed commodity prices and margins: Upstream benefited from the ACG acquisition, while Downstream improved on the back of outstanding asset availability and higher refinery throughput. Yet, we have to remain vigilant, as the pandemic is not yet over, and the coming months may well put all of us to the test again.”

Upstream production increased by 8% compared to the previous quarter to 126.9 thousand barrels/day and it was 18% higher than a year ago in the same quarter. The volumes were boosted by higher net entitlement allocation and a full quarter contribution of ACG. MOL’s net entitlement production in the Azeri asset was 29.8 thousand barrels/day in Q3 2020. Oil and gas prices recovered in Q3 but are still well below the year-ago level. Q1-Q3 Upstream EBITDA was clearly driven by the huge negative price impact on the back of the significantly lower oil (Brent fell 37% year-on-year to USD 41/bbl) and realized gas prices (-34% year-on-year).

Downstream segment Clean CCS EBITDA strongly rebounded and nearly doubled from the Q2 lows but remained 26% weaker than in 2019 due to depressed refinery margins and slightly weaker petchem margins. The polyol project exceeded 70% overall completion at the end of Q3, although progress is somewhat behind schedule as a result of the pandemic situation. Pandemic protocols have been introduced to mitigate the risk of infection within the construction community and to safeguard business continuity. In Q3, a new 20kt rubber bitumen plant, for recycling tire waste, has been completed in Hungary.

Consumer Services reached new all-time high quarterly result at USD 183mn, up by 14% year-on-year, supported by strong fuel performance. Lower OPEX also helped EBITDA due to the network-wide saving actions. Simplified free cash flow grew by 27% in Q3 year-on-year and by 14% in the first three quarter of 2020 to over USD 300 mn; this amount is already exceeding the full-year 2019 level. MOL’s flagship Fresh Corner branded non-fuel concept rollout continues across the network, the number of reconstructed sites with Fresh Corners rose to 910 in Q3 from 895 at the end of Q2 2020.

The Gas Midstream segment EBITDA grew by 59% year-on-year in Q3 2020 to USD 43mn, as increasing demand for cross-border capacity resulted in higher regulated revenues, while operating expenses were lower. Higher capacity bookings and lower OPEX boosted EBITDA in Q1-Q3, resulting in 37% higher performance than in the same period last year.

About MOL Group

MOL Group is an integrated, international oil and gas company, headquartered in Budapest, Hungary. It is active in over 40 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 9 countries and exploration assets in 14 countries. MOL Group operates three refineries and two petrochemicals plants under integrated supply chain management in Hungary, Slovakia and Croatia, and owns a network of 1940 service stations across 10 countries in Central & South Eastern Europe.

Press contact

@: internationalpress@mol.hu

Dóra Simonson