Mol also saw a significant increase in revenue in the second quarter, with first-half EBITDA (interest, taxes and pre-depreciation) exceeding $1.559 million, more than double last year’s results, according to Mol Group. From a published report.
“Net” EBITDA, estimated at repurchase prices, was $893 million in the second quarter, an increase of 153% year over year, primarily driven by strong oil prices, higher benchmark petrochemical margins, and higher fuel sales. Net EBITDA, estimated at these repurchase prices, was $1,559 million at the end of the first half of the year, 60% higher than the prior year level.
Group-wide simplified free cash flow for the first half of the year (“net” EBITDA less estimated organic capital at repurchase rates) increased significantly year-over-year to $922 million as all major segments generated positive and simplified free cash flow in the first half from the year 2021.
EBITDA in the exploration and production segment tripled year-over-year in the second quarter, up 9% from the previous quarter, to $336 million, primarily due to higher oil and gas prices.
“Net” EBITDA for the downstream segment, estimated at repurchase prices, quadrupled from the previous year’s level to $447 million in the second quarter, mainly due to higher petrochemical contributions, but contributed to the notable finding that Refining margins are also gradually getting bigger. It recovers from its lows in the second quarter of 2020.
EBITDA in the second quarter of the consumer services sector hit a record high ($164 million) after states began withdrawing lockdown measures, which had a positive impact on sales volume and non-fuel margins.
In the second quarter, the net debt/EBITDA ratio decreased 0.9-fold due to strong free cash flow generation and increased 12-month rolling EBIDTA, which allowed the company nearly $5 billion in group-wide maneuverability. Net indebtedness decreased to 22%.
Main operating results:
- Oil and gas production declined 5% year-over-year to 111.2 thousand barrels in the second quarter, driven by UK maintenance, lower natural production in the UK and Central and Eastern Europe, and lower ACG production contribution which, according to the PSA, was due to higher oil prices.
- The Poliol project exceeded the readiness level of 84% by the end of the second quarter.
- MOL Group announced the acquisition of OMV in Slovenia, including 120 filling stations and wholesale operations.
- One of the most prominent events was the opening of the 1000th catering unit (Fresh Corner) and the Poliol project, which is 84 percent ready.
- In the coming years, the chemical shift to reprocessing and the development of alternative fuels will continue, making Mol a major player in the region’s low-carbon circular economy.
According to the report, Zsolt Hernádi, President and CEO of Mol, confirmed that the company had its best quarterly result so far from April to June.
“I am proud to announce that we achieved the best quarterly result in MOL Group history. Our integrated, crisis-resistant business model has weathered the challenges of the pandemic, and we’ve been able to benefit from a strong commodity cycle as well. That means we had net EBITDA in the second quarter, estimated at repurchase prices of $893 million, allowing us to raise our annual EBITDA guidance to about $3 billion from the previous value of about $2.3 billion. . As for the future, I am also very happy with our major investments, as we are on the right track to implement our strategy towards 2030 and beyond.”
MOL / wallet
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