By Veronika Gulyas
BUDAPEST--Hungarian energy group MOL Nyrt. (MOL.BU, MGYOY)
turned profitable in the fourth quarter after suffering losses in
the same period a year earlier, but profit was lower than the
third-quarter mainly on a weaker U.S. dollar, a drop in sales and a
seasonally lower gasoline crack spread, MOL's earnings report
showed Monday.
The firm's chairman and chief executive said 2013 will be at
least as challenging as 2012.
MAIN FACTS:
-MOL registered net profit of 7.74 billion Hungarian forints
($34.79 million) in the fourth quarter of 2012, turning around a
HUF29.1 billion loss in the corresponding period of last year but
less than analysts' median expectation of HUF44.35 billion.
-MOL's average daily hydrocarbon production was 114 million
barrel equivalent as Hungarian oil production remained stable and
Croatian onshore gas production was up 13% compared to the previous
quarter, while the offshore production was down 13% on water cut
and a natural decline in the area, MOL said.
-MOL's net debt dropped to HUF742 billion by the end of 2012,
compared to HUF871 billion a year ago. This resulted in a lower
gearing ratio at the end of 2012, at 24.8% versus 28% a year
ago.
-The company posted losses per share of HUF28 in the fourth
quarter 2012 versus losses per share of HUF333 in the same period
in the previous year. In 2012, earnings per share was HUF1,468,
compared to HUF1,541 in 2011.
-MOL Chairman and Chief Executive Zsolt Hernadi said he expects
2013 to be a challenging year on slow European economic growth and
a tightening regulatory environment in many of the countries where
MOL operates.
-Mr. Hernadi said MOL took a hard hit from the halt of its
Syrian operation, but noted the firm can partly compensate by
focusing mainly on the Kurdistan region of Iraq for new oil
findings. MOL is also active in raising the profitability of its
downstream segment, Mr. Hernadi added.
-MOL closed trading down 1.5% or HUF260 at HUF17,490 on
Monday.
Write to Veronika Gulyas at veronika.gulyas@dowjones.com