Hungarian oil and gas company MOL achieved a profit before tax of $916 million in the first half of 2024, marking a 19% increase from the same period last year. The company reported a profit of $534 million for the second quarter alone.
MOL CEO Zsolt Hernádi acknowledged the company’s challenges, including the need to ensure long-term supply security, the continuation of its transformation agenda without external funding, and the pressures from government regulations in Central and Eastern Europe. Hernádi noted that the contributions from MOL’s main Hungarian businesses have been minimal to the group’s financial performance so far in 2024.
In the Upstream segment, MOL exceeded its production guidance with an output of 92.1 million barrels of oil equivalent per day in Q2 2024. This performance was driven by increased international production in KRI Shaikan and Kazakhstan, as well as higher production levels in Hungary and Croatia.
The Downstream segment benefitted from strong demand and improved refining margins, which offset the negative impact of a reduced Brent-Ural spread. Petrochemical margins slightly increased quarter-on-quarter due to lower energy prices. MOL reached significant milestones in Tiszaujvaros, including the launch of its €1.3 billion polyol complex in May and the start of the design phase for a 40 ktpa chemical recycling unit.
In Consumer Services, higher fuel sales volumes and improved non-fuel margins contributed to stronger results, despite lower fuel unit margins. The accounting gain from the transfer of fuel stations also positively impacted results. The non-fuel margin constituted 37.5% of the total margin in Q2 2024, up 3.9% year-on-year, driven by growth in food and grocery sales.
Gas Midstream performance was influenced by milder weather, fluctuating regional demand, and unfavorable foreign exchange changes.
