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2018-11-08 MOL Group Holds Investor Day in London and Upgrades Mid-Term Targets

  • MOL upgrades its EBITDA target by around 10% to an annual USD 2.2-2.4 bn over 2019-2021
  • Upstream raises production guidance and aims to add 350 million barrels of oil equivalent of new reserves by 2023
  • Downstream transformational projects will boost Group EBITDA to USD 2.4-2.6 bn by 2022-2023
  • Consumer Services is expected to generate over USD 500mn EBITDA by 2023 by satisfying regional mileage demand, boosting consumer goods’ contribution as well as mobility services scale-up

London, November 8, 2018 – Today, MOL held an Investor Day in London to provide a progress report and an update on the strategic targets defined in the “MOL Group 2030” strategy announced two years ago. While retaining its resilient, integrated business model and consistently delivering strong results, MOL has embarked on a journey to transform itself to become a leading chemicals company in CEE and a truly customer centric organization, and to be the first choice of employees, customers and investors.

MOL raised its Clean CCS EBITDA guidance for 2019-21 by around 10% to USD 2.2-2.4 bn on the back of an upgraded mid-term production profile in Upstream and strong Consumer Services contribution. Looking further ahead, in 2022-23 MOL expects to further increase its annual EBITDA to USD 2.4-2.6 bn as the contribution from the Downstream strategic projects, including the investment into polyols, will already be visible.

The Upstream segment raised its mid-term production guidance. It now expects that the current portfolio will be able to produce 100-110,000 barrels of oil equivalent per day even until 2023. This is driven by the development program at the Shaikan Field in Kurdistan Region of Iraq and the extended UK plateau production, as well as by the optimization programs in Hungary and Pakistan. MOL will look to add 350 million barrels of oil equivalent new reserves by 2023.

Downstream will continue to boost efficiency and deliver net savings by 2023, while the first round of strategic and transformational projects shall already have a visible earnings contribution by 2022-23. MOL also sees significant upside potential in capturing the full benefit of International Maritime Organization’s (IMO) regulation for marine fuels. Since the fuel specification change will prohibit high sulphur marine fuels as of January 2020, margins may expand atthe Danube and Bratislava refineries, which have no material fuel oil production.

Consumer Services is expected to generate over USD 500 mn EBITDA by 2023 through satisfying CEE mileage demand, boosting Consumer Goods EBITDA and scaling up mobility services. MOL will double its Fresh corner sites to 1,250 by 2021. It will increase its MOL Limo car sharing fleet to 600 cars in Budapest, all electric, while also rolling it out to an additional 2-3 cities.

To view the whole Investor Day presentation click here.

2018-10-31 MOL Group Q3 2018 Results: Strongest Quarter In Three Years

  • Clean CCS EBITDA rose 23% to USD 708mn in Q3, on track to reach upgraded 2018 target (USD 2.4bn)
  • Upstream’s contribution jumped by 70% y-o-y, while Consumer Services ended Q3 with all-time high result
  • Net profit at USD 323mn in Q3, reaching USD 835mn for the first nine months of 2018

Budapest, 31 October 2018 – Today, MOL Group announced its financial results for the third quarter of 2018. A material increase in Clean CCS EBITDA in Q3 brought EBITDA for the first nine months of the year to just over USD 2bn.

Upstream delivered USD 319mn EBITDA in Q3, up by 70% year-on-year on the back of rising oil and gas prices. The average daily hydrocarbon production was marginally lower in Q3 and stood at 108,300 barrels of oil equivalent per day (boepd), as rising production in the Catcher area in the UK mostly offset the impact of the usual annual turnarounds.

Downstream Clean CCS EBITDA remained almost flat at USD 262mn in the third quarter, despite significantly weaker refinery and petrochemical margins. The deteriorating margins were mostly compensated by strong volumes and improved sales margins in refining in the quarter.

Consumer Services continued its double-digit growth driven by dynamic expansion of non-fuel margin and healthy fuel market trends. The segment reached a new all-time high quarterly result at USD 147mn, up by 11% year-on-year. As the rollout of the flagship non-fuel concept significantly accelerated, the number of reconstructed sites with Fresh Corners rose to 606 from 363 a year ago.

The Gas Midstream segment reached USD 25mn EBITDA in Q3, lower than a year ago due to lower volumes and rising energy cost.

Chairman-CEO Zsolt Hernádi commented on the results: „The delivery of the very strong third quarter results will allow us to comfortably meet or beat our upgraded Clean CCS EBITDA guidance of USD 2.4bn in 2018, while we also continued with our strategic business transformation and reached important milestones in the last three months. We increased our EBITDA and free cash flow by more than 20% in Q3, as Upstream capitalized on higher oil prices and became the largest cash contributor, Consumer Services continued its double-digit growth and Downstream posted flat earnings despite a much weaker macro. Meanwhile, we signed lump-sum EPC contracts for our flagship polyol project and also agreed on a strategic partnership in plastics recycling during the quarter.”

2018-10-02 MOL Group lays the foundation stone for new HQ

  • Construction has started on the 28-story “MOL Campus”, designed by Foster + Partners
  • MOL hires Berlin-based KINZO studio for the interior design
  • The new building will serve as the headquarters of MOL Group from 2021
  • For photos and videos of the design visit http://molcampus.hu/en/shared

Budapest, 2 October 2018 – Today, MOL Group has laid the foundation for the new MOL Campus headquarters. The future workspace for up to 2,500 employees will be located on the banks of the Danube in the southern part of Budapest, close to the current HQ building. The modern design mirrors MOL Group’s bold vision of its 2030 strategy to drive change across CEE over the few next decades, and will also play an essential role in redesigning employee experience.

Zsolt Hernádi, Chairman-CEO of MOL Group said: "We are building the most modern office building in the region, MOL Campus. This unprecedented building represents the culmination of the development of MOL's market position and culture over the past twenty years, but is also the basis for our future. It underlines that MOL lives in symbiosis with its environment, invests in the future and provides an inspiring work environment for the employees who will provide the lion’s share of the implementation of the MOL 2030 strategy."

Meeting the ambitious targets of the new long-term strategy, MOL 2030, requires smart investments in both physical infrastructure and human capital. Currently MOL headquarters is scattered throughout five districts in Budapest, in buildings mostly constructed during the 1970s. The new campus will not only generate substantial operational synergies through the relocation of all Budapest staff, but will also play an essential role in redesigning the employee experience, enhancing collaboration and helping to create a superior physical, technological and cultural environment. This will be crucial for attracting and retaining a high quality, mobile and tech savvy workforce in the future. In line with MOL’s vision for 2030, the new campus will feature the highest standards of energy efficiency and sustainability and aims to obtain both LEED and BREEAM qualifications.

MOL hired Berlin-based KINZO to design the interior of MOL Campus. KINZO has previously designed interior design projects for large office buildings such as the ERSTE Campus in Vienna, the Adidas headquarters in Herzogenaurach and the SoundCloud office in Berlin. KINZO's local partner is Minusplus.

MOL Campus is designed by one of the most renowned architectural studios in the world, the UK-based Foster + Partners, who will be also responsible for certain interior community areas in coordination with KINZO. Foster + Partners Hungarian partner is FintaStudio.

Notes to editors:

LEED: (Leadership in Energy and Environmental Design).  The certification system was launched in the United States. New and also existing buildings can be rated within the framework of LEED system. LEED is a voluntary, consensus-based rating system for the environmental friendly buildings operated by the market which relies on the available and operative technologies. A project could achieve „Certified”, „Silver”, „Gold” or „Platinum” certification. The rating system was elaborated on five environmental categories (advantageous location from environmental aspect, efficiency of water consumption, energy and atmosphere, materials and tools and the quality of internal environment).

BREEAM: (Building Research Establishment Environmental Assessment Method) is the first environmentally conscious building certification system which was initiated in the United Kingdom. The aim of the system is to improve the quality of the built environment; commercial, trade and office buildings can be rated. BREEAM supports low energy consumption buildings, various solutions for improving water efficiency, and investments which do not affect green areas, but realized as brownfield projects and therefore have less effect on the environment. The BREEAM certificated buildings are classified into five categories: pass, good, very good, excellent and outstanding.

2018-09-13 MOL recognized by the Dow Jones Sustainability Index for the third consecutive year

  • MOL is now ranked in the top 15% of Upstream & Integrated Oil & Gas companies worldwide in terms of sustainability
  • MOL is the sole emerging European member of the index
  • MOL Group consistently receives strong scores among leading sustainability indices

Budapest, 13 September 2018 – MOL continues to be one of the leaders in sustainability in the Central and Eastern European region. The company has been selected as an index component of the Dow Jones Sustainability Indices (DJSI) for the third year running.

Following the annual sustainability assessment conducted by Robeco SAM, MOL is now ranked in the top 15% of Upstream & Integrated Oil & Gas companies worldwide based on sustainability performance and is the sole emerging European member of the index.

Since 1999, the DJSI has been tracking the economic, environmental and social performance of listed companies worldwide, and is designed to identify companies that demonstrate strong sustainability practices against internationally recognized standards. The DJSI is based on an in-depth analysis of a company’s sustainability performance on 23 primary criteria and more than 100 secondary criteria across Economic, Environmental and Social dimensions. Hence membership in the DJSI is restricted to corporations judged to be best-in-class.

Given its long-term commitment to sustainable development, MOL is pleased to be continuously recognized as a top Environmental, Social and Governance (ESG) performer by leading sustainability indices as well as top research and rating agencies, including Dow Jones Sustainability Indices, MSCI, and Sustainalytics. As part of its long-term strategic transformation, MOL aims to further adapt its business to a low carbon world.

2018-09-13 MOL recognized by the Dow Jones Sustainability Index for the third consecutive year

  • MOL is now ranked in the top 15% of Upstream & Integrated Oil & Gas companies worldwide in terms of sustainability
  • MOL is the sole emerging European member of the index
  • MOL Group consistently receives strong scores among leading sustainability indices

Budapest, 13 September 2018 – MOL continues to be one of the leaders in sustainability in the Central and Eastern European region. The company has been selected as an index component of the Dow Jones Sustainability Indices (DJSI) for the third year running.

Following the annual sustainability assessment conducted by Robeco SAM, MOL is now ranked in the top 15% of Upstream & Integrated Oil & Gas companies worldwide based on sustainability performance and is the sole emerging European member of the index.

Since 1999, the DJSI has been tracking the economic, environmental and social performance of listed companies worldwide, and is designed to identify companies that demonstrate strong sustainability practices against internationally recognized standards. The DJSI is based on an in-depth analysis of a company’s sustainability performance on 23 primary criteria and more than 100 secondary criteria across Economic, Environmental and Social dimensions. Hence membership in the DJSI is restricted to corporations judged to be best-in-class.

Given its long-term commitment to sustainable development, MOL is pleased to be continuously recognized as a top Environmental, Social and Governance (ESG) performer by leading sustainability indices as well as top research and rating agencies, including Dow Jones Sustainability Indices, MSCI, and Sustainalytics. As part of its long-term strategic transformation, MOL aims to further adapt its business to a low carbon world.

2018-09-12 MOL reaches final investment decision on Polyol Project and signs EPC contracts with thyssenkrupp

  • The EPC contracts cover the entire technical scope of the Polyol Project
  • Ground works and basic construction activities are set to begin already in Q4 2018
  • The Polyol Project is MOL’s currently largest investment and it will become the only integrated polyol producer in CEE
  • The extension of the petrochemical value chain towards semi-commodity and specialty chemicals products is part of MOL’s 2030 transformational strategy

Budapest, 12 September 2018 – MOL has reached another important milestone in its flagship strategic chemical project and entered into engineering, procurement and construction (EPC) contracts with thyssenkrupp Industrial Solutions for the implementation of the entire polyether polyol complex.

The EPC contracts cover the entire technical scope of the Polyol Project apart from certain elements mainly relating to project management, site integration and infrastructural costs and commissioning of the assets.

The new chemical complex will have a polyether polyol production capacity of 200kt per annum, larger than originally envisaged and will be capable to produce a wider range of end-products than foreseen at the time of the announcement of the new long-term strategy of MOL. It will also include a propylene glycol production unit to maximize operational and commercial flexibility. The total CAPEX of the Polyol Project is EUR 1.2 bn, including already incurred costs.

The new manufacturing complex will be built in Tiszaújváros, Hungary and is planned to be operational by the second half of 2021. Ground works and basic construction activities are set to begin already in Q4 2018.

Zsolt Hernádi, MOL Group Chairman-CEO commented: “Reaching the final investment decision on the Polyol Project and the signing of the EPC contracts with our renowned strategic partner, thyssenkrupp, is another major milestone of our transformational strategy, MOL 2030. We will be entering a knowledge-intensive, high value-added chemicals market with an innovative and environmentally friendly technology, allowing us to capitalize on rising regional demand and to exploit additional growth opportunities in CEE. The expertise and know-how of thyssenkrupp will remain instrumental in the implementation phase.”

Marcel Fasswald, Chief Operating Officer of thyssenkrupp Industrial Solutions AG: “The new polyol complex is an important flagship project both for us and for our customer MOL and Hungary. Together we will set standards in terms of efficiency, environmental friendliness and automation by combining proven technologies with innovative solutions. We look forward to our further cooperation and are proud to contribute our decades of experience in chemical plant engineering and the handling of such major projects. At the same time, we are strengthening the plant engineering business of thyssenkrupp.”

In line with its 2030 strategy, MOL Group will move further along the petrochemical value chain towards semi-commodity and specialty chemicals products, transforming into a leading chemical group in CEE. Polyether polyols, which serve as feedstock for polyurethane foam, were identified as the main direction in MOL’s petrochemical expansion due to their wide applications in the automotive, construction, packaging and furniture industries. Through this key investment MOL aims to become a strategic partner of polyurethane producers in CEE, building on its fully integrated value chain, state-of-art technology and service excellence.

2018-09-04 MOL Foundation: new name, same goals

After 12 years of supporting young talents and organisations as ’New Europe Foundation’ now we are changing our name. We are continuing as ’MOL Foundation’.

Being the biggest company in Hungary, MOL donates HUF 1.7 billion each year for different social initiatives. The social portfolio covers the areas of culture, health, education, transport safety, environmental protection and societal affairs. The New Europe Foundation was created in 2006 by MOL marking their seriousness in the field of social responsibility and spending HUF 100 million yearly to support young sportsmen, artists, teachers and children’s health-care. As a result, MOL Support program has granted financial help for nearly 4500 young sportsmen, scientists, artists and their teams. In the framework of MOL Child Healing Program 440 projects won support, which participated in the healing of more than 96,000 children.

2018-08-02 MOL Group raises full year EBITDA target based on first half results

  • MOL Group delivered CCS EBITDA of USD 1.3bn in H1 similarly to previous year
  • Upstream and Consumer Services offset weaker Downstream contribution
  • Net profit reached USD 512mn

Budapest, 3 August 2018 – Today MOL Group announced its financial results for the first six months of 2018. EBITDA was sustained at the very strong 2017 level of USD 1.3bn, based on which the company upgraded its target for the full year to USD 2.4bn (from around USD 2.2bn).

Upstream EBITDA jumped to USD 612mn (HUF 159.4bn) for the first six months, up by 37% year-on-year, driven by rising oil and gas prices. Average daily hydrocarbon production was nearly stable in H1 year-on-year at 110 thousand barrels of oil equivalent per day (boepd). Lower production volumes in Hungary, Croatia and Russia were offset by increased production in the UK. The Catcher Area reached plateau production rates of over 60 thousand boepd (gross) in May following the start-up of gas export (MOL has 20% non-operated stake in Catcher).

Downstream Clean CCS EBITDA was USD 492mn (HUF 128.4bn) in H1 2018, 24% lower year-on-year from a very high base, primarily affected by the adverse macro developments. The integrated petrochemicals margin dropped by more than 150 EUR/t and the Group refinery margin was 1.1 USD per barrel weaker. Strong internal performance mainly in petrochemicals could only partly offset the weaker margins.

Consumer Services continued to reach new all-time high results ending the first six months of the year with USD 192mn EBITDA (HUF 50.2bn), an increase of 28% compared to the previous year. The increase was driven by a combination of increasing non-fuel margins, strong fuel sales growth on the back of increasing CEE fuel consumption. Non-fuel margin continued to increase at a higher pace than fuel margin reaching 27% of the total margin, up from 24% a year ago.

The Gas Midstream segment reached USD 116mn EBITDA (HUF 29.8bn) in the first half-year, up 8% year-on-year.

Chairman-CEO Zsolt Hernádi commented the results: “Our resilient, integrated business model once again proved its worth in a changing external environment, allowing us to upgrade our full-year 2018 Clean CCS EBITDA guidance to around USD 2.4bn (from around USD 2.2bn). MOL Group delivered strong results in the first half of 2018 and maintained its profitability at last year’s outstanding level of USD 1.3bn EBITDA amidst rising oil prices and weaker downstream margins. We also made good progress and are going ahead at full steam with executing our 2030 transformational strategy.”

2018-08-02 MOL Group and APK Form Strategic Partnership for Plastic Recycling

  • MOL Group and German recycling technology company APK sign strategic cooperation agreement
  • APK’s innovative plastic recycling plant is scheduled to start, MOL Group supports its completion
  • APK and MOL Group will also explore joint projects in CEE
  • MOL Group aims to become a regional leader in recycling in line with MOL 2030 strategy

Merseburg, Germany, 2 August 2018 – MOL Group and APK AG signed a strategic cooperation agreement yesterday in Merseburg. As a first step in the cooperation MOL will support the completion of APK’s Merseburg plant. The plant will serve as a pilot for the innovative solvent-based process, called Newcycling®, which enables the recovery of high-quality materials from complex multi-layer packaging.

Ferenc Horvath, MOL Group’s EVP for Downstream commented: ”In line with MOL 2030 strategy, we are taking steps to grow our petrochemicals business and enter knowledge intensive industries together with strategic partners. We see a growing demand from our customers for recycled plastics and at the same time we are also fully committed to the idea of circular economy and sustainability. We aspire to become leaders in recycling in Central and Eastern Europe and with today’s agreement we are marking the first milestone on this journey. MOL, as an established polymer player in CEE, together with an innovative partner as APK will work on further developing the Newcycling® technology and bringing it to our core region where the need and the potential for plastic waste recycling is significant.”

APK developed an innovative recycling technology named Newcycling® that can be applied to a broad variety of mixed plastic types and process them into high-quality recyclates. The first Newcycling® plant using APK’s core technology is currently being set-up at APK’s headquarter in Merseburg.

Klaus Wohnig, APK’s speaker of the management board pointed out: „In the last couple of years, APK developed - funded by its financial investors MIG Fonds and AT Newtec - its Newcycling® technology considerably and is reaching market maturity now, which we have proven in joint projects with leading players in the packaging, FMCG and plastics industry. We are proud to enter now into a strategic partnership with MOL, a highly-reputed player in the polymer industry, in order to finalize our new plant in Merseburg and to enter jointly CEE, which we assess to be a very interesting market in future, since there is expected to be a strong trend from landfill and incineration towards recycling and a truly circular plastics economy. And with MOL’s strong roots in this region, we think MOL is the perfect partner to step into CEE.”

One of the cornerstones of MOL Group 2030 strategy is to expand the company’s petrochemicals value chain. As such MOL Group plans to invest around USD 4.5 billion until the end of the next decade into petrochemical and chemical growth projects. As part of this growth strategy MOL Group intends to build up its recycling capabilities, as plastic recycling is the most cost-efficient and environmentally friendly option for a responsible management of plastic waste. Plastic packaging is one of the key strategic segments defined in MOL’s 2030 Enter Tomorrow Strategy and a sector where both partners recognize a growing demand for recycled materials.  

About APK

APK is an innovative recycling technology company. At its headquarters in Merseburg near Leipzig, Germany, APK produces high-quality plastic recycle reclaimed from post-consumer and production sources. APK’s core technology is its Newcycling® process, a solvent-based technique that makes it possible to recover high-quality plastics from complex mixtures and multi-layer composites (so-called multilayer packaging) that cannot be recycled using conventional recycling systems. This allows the pelletised recycle to be reused in demanding applications, such as flexible packaging. For more information, please visit www.apk-ag.de and www.apk.ag.

2018-06-20 MOL Group’s INA buys Eni’s share in Northern Adriatic offshore gas fields

  • Group production to increase by nearly 380,000 m3 per day (2,500 barrels of oil equivalent per day)
  • The transaction covers 4.3 million barrels of oil equivalent reserves
  • INA to become 100% owner and sole operator of the two producing offshore fields

Budapest, 20 June 2018 – MOL Group’s Croatian INA agreed to buy Eni Croatia BV, a wholly-owned member of Eni Group, through which Eni participated in the joint project of gas production in Croatia’s offshore areas Northern Adriatic and Marica.

INA will become the 100% owner and the sole operator of the Northern Adriatic and Marica fields after all conditions are fulfilled, including receiving clearance from the antitrust authorities, which is expected in the coming months.

The transaction covers 4.3 million barrels of oil equivalent (boe) proven and probable reserves and would increase hydrocarbon production by around 2,500 boe per day (or nearly 380,000 m³ per day), a step towards meeting the group’s reserves replacement targets. INA will also become, for the first time in its history, the sole operator of offshore fields. This will also allow INA to carry out further investment in the Northern Adriatic and Marica areas.

Following the transaction, all gas produced in the Northern Adriatic concession area will be directed towards the Croatian supply system. The gas produced in the Marica area will continue to be transported to Italy, under a gas sales contract signed by INA and Eni.

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