Second-quarter net income of Hungarian oil and gas company MOL rose by 60% year-on-year to 298.0 billion forints as revenue growth outpaced the increase in overall costs, an earnings report released ahead of the opening bell on Friday shows.
Excluding discontinued operation – MOL has agreed to divest its UK upstream assets – net income increased by 40% to 249.5 billion forints. Total revenue rose by 76% to 2,495.2 billion forints. Cost of raw materials and consumables climbed 76% to 1,856.6 billion forints, but total operating expenses increased by just 67% to 2,129.3 billion forints. Operating profit jumped 160% to 365.9 billion forints. Basic earnings per share came to 435 forints for the period. Operating profit of MOL’s upstream business rose to 200.0 billion forints from 32.0 billion forints in the base period. Operating profit of the downstream business climbed to 258.1 billion forints from 104.7 billion forints. Operating profit of the consumer services division slipped to 6.3 billion forints from 39.4 billion forints. MOL acknowledged that EBITDA of the consumer services business “collapsed” in Q2 due to fuel price regulation in various countries in Central and Eastern Europe and because of a retail tax in Hungary.