By Veronika Gulyas
BUDAPEST--Hungary's market leading oil and gas company MOL Nyrt.
(MGYOY, MOL.BU) suffered a decline in net profit in the second
quarter versus the previous three-month period, the company's
earnings report published Wednesday said. This was due mainly to
lower crude oil prices and decreasing hydrocarbon production having
hit the company's upstream operations, its most profitable
segment.
MAIN FACTS:
-MOL's second-quarter net profit dropped to 20 billion forints
($88 million) versus HUF32.2 billion a quarter earlier.
-Profit rose significantly versus a year ago; second-quarter net
income was HUF498 million in 2Q 2012.
-EBITDA, or earnings before interest, taxes, depreciation and
amortization, came in at HUF112 billion, down 21% versus the
previous quarter as seasonally stronger demand and sales in
downstream was weakened by deteriorating external conditions such
as lower motor fuel crack spreads and shrinking Brent‐Ural spread
and unplanned shutdowns.
-MOL expects the quarterly loss to be offset in the longer term
thanks to its Kurdistani operations in Iraq where it reached a
milestone this quarter, Zsolt Hernadi, chief executive and
chairman, said in the report.
-MOL finished trading down 0.9% or HUF150 at HUF16,300.
Write to Veronika Gulyas at veronika.gulyas@wsj.com
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