BUDAPEST--MOL Nyrt. (MOL.BU), one of central Europe's largest
refineries and Hungary's biggest company by revenue, turned
loss-making in the fourth quarter as falling oil prices offset the
effects of higher production and stronger dollar against the
forint, the firm's earnings report published Tuesday shows.
MAIN FACTS:
-- MOL's clean net loss was 68.6 billion forints ($272 million),
compared to HUF5.2 billion profit the same period a year ago.
-- At the same time, clean earnings before interest, taxes,
depreciation and amortization, or Ebitda, one of the key indicators
for the sector, was up 19% on the year at HUF146 billion, versus
HUF127 billion expected by eight analysts in a poll by
portfolio.hu.
-- Besides a strong downstream, there was also some improvement
in the upstream segment, partially a result of successful field
development both in the mainland and offshore in Central
Europe.
-- Loss per share was HUF778 versus HUF38 earnings per share a
year earlier and a loss per share of HUF226 expected in the
poll.
-- In full 2014, capital expenditure or Capex spending reached
HUF532 billion ($1.97 billion) in 2014, spent on completing the
firm's North Sea acquisition and a retail network buy of 44 fuel
stations in the Czech Republic. This compares to a planned Capex of
up to $1.9 billion.
-- Indebtedness ratio, or net gearing narrowed to 19.6% versus
16% a year ago, MOL said.
-- Zsolt Hernadi, chief executive and chairman said the company
saw strong results in 2014 despite falling oil prices. He announced
the firm's newest Downstream Program for 2015-2017 which is
expected to bring $500 million downstream EBITDA improvement and
"very strong" free cash flow generation over the coming years.
-- "In terms of acquisitions, we expect to benefit from lower
oil prices; we're ready to act once the opportunity arises," Mr.
Hernadi added.
-- MOL shares closed up 0.5% at HUF11,785 on the Budapest Stock
Exchange Monday.
Write to Veronika Gulyas at veronika.gulyas@wsj.com
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