Hungarian oil and gas company MOL Nyrt. (MOL.BU) said Friday its adjusted second-quarter net profit rose to a quarterly record on debt revaluation, while its operating profit fell sharply due to lower oil prices and narrowing diesel crack spreads.

MOL's adjusted net profit totaled 156.1 billion forints ($832.2 million) in the second quarter, up 42% from HUF109.6 billion a year earlier. That's 14% higher than analysts' expectations for HUF136.5 billion.

Unadjusted net profit was HUF178.5 billion in the second quarter, up 56% from HUF114.7 billion a year earlier. Unadjusted and diluted earnings were HUF1,885 a share versus a HUF1,163 a year earlier.

The bottom line was boosted by a revaluation of foreign-currency debt due to the forint's strength, which led to a hefty unrealized net foreign exchange gain. As a result, net financial profit more than doubled to HUF103.5 billion from HUF37.6 billion a year earlier.

Consolidation of Croatian subsidiary INA also lifted the bottom line, with its profits included in the income from associates, which rose to HUF18.83 billion from HUF1.42 billion a year earlier.

Meanwhile, all operating segments, except natural gas, generated lower profits than a year earlier. As a result, adjusted operating profit fell sharply, 42%, to HUF47.7 billion from HUF82.7 billion a year earlier. Adjusted operating profit in downstream activities fell 40% on a sharp decline in diesel crack spreads, while in upstream it fell 50% on a halving of crude oil prices.

MOL stressed, however, that its downstream segment improved considerably in the second quarter from the previous quarter - despite a 33% decline in the average crack spread and a narrowing of the Brent-Ural crude spread - due to rising quarterly sales volumes.

Despite the crisis, the fall in demand for automotive fuels wasn't as severe as expected, it said. Diesel sales remained steady, and gasoline sales decreased only 3% from a year earlier, it added.

MOL's adjusted earnings before interest, tax, depreciation and amortization, or Ebitda, fell 20% from a year earlier to HUF92.9 billion in the second quarter. That still exceeded expectations of nine analysts in a poll by portfolio.hu for HUF86.94 billion.

MOL shares have been underperforming the benchmark BUX index of the Budapest Stock Exchange for most of this year as investors have preferred defensive drug stock Richter (RICHTER.BU) and OTP Bank's shares because of their growth potential.

Company's Web site: www.mol.hu

-By Margit Feher and Veronika Gulyas, Dow Jones Newswires; +361-267-0622; margit.feher@dowjones.com