By Veronika Gulyas
BUDAPEST--Hungarian energy group MOL Nyrt. (MOL.BU) net profit
fell sharply in the first quarter on a halt in Syrian output and
low demand for fuel amid slow economic growth, MOL's earnings
report showed Tuesday.
MAIN FACTS:
-MOL registered net profit of 32.3 billion Hungarian forints
($142.5 million) in the first quarter of 2013, compared with
HUF73.9 billion profit in the corresponding period of last year and
less than analysts' median expectation of HUF40 billion.
-MOL's average daily hydrocarbon production was 110 million
barrels equivalent, down from 134 million a year earlier on lower
crude-oil production across MOL's fields and a decline in natural
gas production in Hungary, partly offset by increasing offshore
natural-gas output.
-Other key factors pulling down the bottomline include lower
revenue from Hungarian domestic gas transmission due to a
relatively mild weather and a cut in tariffs. In the meantime, MOL
saw improving performance in its downstream segment, supported by
an improved gasoline crack spread and efficiency.
-MOL's net debt rose to HUF784 billion in 2013 from HUF749
billion at the end of 2012, driven by a weaker forint. In the
meantime, net gearing dropped to 25% from 29% a year earlier.
-The company posted earnings a share of HUF327 in the first
quarter, versus HUF706 in the same period in the previous year.
-MOL Chairman and Chief Executive Zsolt Hernadi said this year
has so far proven as challenging as expected amid slow economic
growth, but the company is nevertheless making an effort to ensure
medium-term growth potential by acquisitions and further
streamlining.
-"We still strive for maintaining financial stability," Mr.
Hernadi said, adding MOL is capable of carrying out acquisitions
and renew its asset base both in the upstream and downstream
segments.
-MOL closed trading up 0.4% or HUF60 at HUF16,610 Monday.
Write to Veronika Gulyas at veronika.gulyas@dowjones.com