BUDAPEST--Hungarian energy group MOL Nyrt. (MOL.BU) saw a
massive drop in its second-quarter net earnings on the year, a
situation the company pledges to address through extensive
reorganizations, MOL's newly published earnings report shows.
MAIN FACTS:
-MOL registered net profit of 700 million forints ($3.1 million)
in the second quarter of 2012, a 99% plunge from the corresponding
period of last year.
-MOL's operating profit dropped substantially to HUF1.1.
billion, likewise a nosedive of 99%.
-MOL's Chairman and Chief Executive Zsolt Hernadi said the
results are due to the effects of the economic crisis as well as
the adverse developments to its interests in Syria.
-"We still believe that with appropriate responses we could
become an even stronger and more successful industrial player," Mr.
Hernadi said. He stressed that MOL is aiming to improve its results
in both upstream and downstream through new ventures in Kazakhstan
and the Czech Republic, respectively.
-Mr. Hernadi said that a recently launched management
restructuring effort is also expected to contribute to the
company's effective operation in the future.
"We expect a faster and more focused decision-making, a more
flexible and efficient organization, which will contribute to our
further successes in the future," he said.
Write to the Budapest bureau at budapest@dowjones.com
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