MOL plans to reorganise its downstream business, including a headcount reduction of 700 workers, as part of a wider programme to improve profitability. The company announced the plans, which affect between 6% of 7% of its Hungarian workforce, in a statement over the weekend, citing "an extremely negative" downstream business environment.
MOL is aiming to lift earnings before interest, taxes, depreciation and amortisation (EBITDA) by between $500m and $550m by 2014. "In the framework of the programme MOL also revised the organisational structures needed for the operation," said the company. "Based on it MOL initiates restructuring, mergers and changes in the organisation of work, and as a result it proposes a collective redundancy of 700 people."
MOL noted that high and energy prices have increased the operating costs of refining significantly, and that regional export prospects were shrinking. The company had previously announced plans to invest $1.4 billion in the next three years in Hungary to increase refining efficiency and improve upstream operations.
PetrolWorld 01102012