Mol Group announced its financial results for Q1 2020. Large inventory and foregin exchange losses resulted in MOL reporting a 152 million net loss for Q1, the first sign of the pandemic-related crisis.
“Underlying operations were running strong until mid-March, as reflected by the 622 million USD Clean CCS EBITDA, however, the pandemic had already started to severely affect all business lines in the last 2-3 weeks of March and the situation further deteriorated in April. Due to the unpredictable external environment, 2020 EBITDA guidance was withdrawn and organic capital expenditure guidance was cut by more than 25 percent,” Mol said.
- Upstream Q1: Due to the extremely low oil prices from the beginning of March, Upstream EBITDA decreased to 185 million USD in Q1. Oil & gas production volumes were 110.6 mboepd, 4% lower than a year ago, due to the natural decline in CEE.
- Downstream Q1:Clean CCS EBITDA doubled and increased to 295 million USD in Q1 from a low base, supported by doubling refinery margins. The polyol project reached 60% completion at the end of Q1. The pandemic affects the project’s supply chain and makes workforce mobilization increasingly difficult.
Chairman-CEO Zsolt Hernádi commented on the results: “Covid-19 shapes and rules the world and the energy industry. The pandemic situation and economic crisis that follows will cast a long shadow on our overall performance in 2020. Individuals as well as companies entered a period of uncertainty we have probably never even imagined before. While we are fighting the pandemic and doing our best to protect our people, our customers and partners, we are also working hard to make sure MOL can continue to operate even under extreme scenarios and can eventually emerge even stronger from this crisis. We have already made a series of difficult decisions that will help us to achieve cash neutrality, to maintain our liquidity and financial flexibility and to grab opportunities which may arise on the way towards normalization.”
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