All segments increased their contribution, downstream remained the main earnings contributor
MOL Group has posted its financial results for 2017, comfortably outperforming its 2017 target. MOL increased its EBITDA by 14%, supported by a strong financial and operational delivery of all business segments.
In line with lowered guidance and slightly higher than in the previous year, organic capex stood at USD 1.04 bn. Establishing a strong financial framework to cover its ambitious transformational projects, MOL continued to generate a massive amount of free cash flow.
Arising from higher Brent and gas prices, upstream delivered USD 854 mn EBITDA, a 26% increase in comparison with 2016. The segment nearly doubled the amount of free cash flow, due to a strong cost discipline USD 14 per each barrel produced, and turned into a major contributor to the Group’s cash generation in 2017.
Once again posting strong results was downstream and remained the main earnings contributor delivering almost half of the Group’s Clean CCS EBITDA at USD 1.18 bn. From an already very high base, the segment increased its contribution by 2% due to internal efficiency programs and the still supportive external environment.
As a result of rising fuel consumption (4% growth in 2017 in CEE) and healthy margins, Consumer Services continued its impressive double-digit growth, posting USD 358 mn EBITDA, a 17% increase year-on-year, and is now well on track to reach USD 450 mn EBITDA target by 2021. The growth of non-fuel margin, MOL’s non-fuel concept Fresh Corner, continued to outpace the fuel margin, with its share in the total retail margin reaching a new high of 26% in the last quarter of 2017.
Strongly supported by surging domestic transmission volumes, which were able to compensate for adverse tariff changes, Gas Midstream EBITDA rose 15% year-on-year to reach USD 223 mn.
Zsolt Hernádi, MOL Group Chairman-CEO, said, "I am glad to say that 2017 was another year of delivering strong financial results, but equally importantly it was also a year of visible progress along our transformation journey set out in the MOL 2030 strategy. We comfortably beat our upgraded earnings targets with increasing contribution from all businesses. Upstream more than doubled its free cash flow contribution, Downstream EBITDA increased further from a high base, while Consumer Services sustained its double-digit earnings growth. We are starting 2018 and expecting to deliver around USD 2.2bn EBITDA this year, which will allow us to fund our transformational projects as well as the rising dividends to our shareholders." PWKD21022018
Latest from PWKD
- OPW Global At Kuala Lumpur Expo 2018
- Hungary: Spar To Sponsor U18 European Athletics Championships
- Brazil: Senate Allows Ethanol Producers Selling Fuel To Fuel Service Stations
- USA: Market Force & Phillips 66 Introduce Key Driver Fuel Forecast Indicator
- UAE: ADNOC Distribution Rolls Out First Vehicle Inspection Centre