UPDATE: MOL 2Q Adjusted Net +42% On Financial Results, Beats Forecast
August 27 2009 - 8:05PM
Dow Jones News
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