Hungarian MOL Group recorded an earning before interest, taxes, depreciation and amortization (EBITDA) of 1.125 billion dollars in the first half of 2023. In Q2, EBITDA amounted to 411 million dollars. Downstream and Upstream segment results were impacted by unfavorable macroeconomic conditions and massive government charges, including additional taxes and mining royalty surcharges.
MOL Group recorded net profiт of 220 million dollars, 74% lower compared to the same quarter last year. Иn the second quarter, results were also impacted by a new additional income tax in Hungary of 315 million dollars at the full-year 2023 level, recognized as a one-time expense in the second quarter. The Consumer Services segment rebounded from last year’s lows and generated approximately 43% of MOL’s total EBITDA result, partially mitigating the adverse effects of the external environment. At the level of 2023, the MOL Group estimates that it will reach an EBITDA level of 2.5 billion dollars.
MOL CEO Zsolt Hernadi said that the macroeconomic context was not strong enough to counterbalance the negative effects of government interventions in the Central and Eastern European region which undoubtedly left their mark on the results the company achieved in the first half of the year and, in especially in the second quarter of 2023.
The current level of government taxes, unless these exceptional measures are phased out in the near future, will affect the competitiveness of the MOL Group and put pressure on the generation of cash flow necessary for its investment plans. In the Upstream segment, EBITDA decreased to 99 million dollars in Q2 2023 and reached 382 million dollars in H1 2023, representing a decrease of 83 % and 63 % respectively compared to the same period last year.
