London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950
info@mrcplast.com

Our Clients

Order Informer

 
Home > News >
 

Hungary refiner MOL targets downstream M&A, seeks 10% expansion

March 12/2015

MOSCOW (MRC) -- Mol Nyrt., the Hungarian oil refiner which posted its biggest quarterly loss in more than five years, is seeking to raise production by 10% this year and resume acquisitions after crude prices slumped, reported Hydrocarbonprocessing.

"We will assess every downstream acquisition possibility in the region" and "I hope we can make announcements in this respect this year," Ferenc Horvath, Mols executive vice president in charge of refining and marketing, said in an interview Tuesday.

The company seeks to raise the amount of retail products it sells in central and eastern Europe to 5.4 billion liters a year by 2017 from 4.3 billion liters, Horvath said.

Hungarys largest listed company had a 68.6 billion forint (USD254 million) net loss in the three months ending December, compared with a 5.2 billion forint profit a year earlier, it said in a regulatory statement on Tuesday. One-time items, including the revaluation of oil reserves, caused the loss, the results showed. Mols stock rose after the company said it plans to raise upstream output by about 10% to as much as 110,000 bpd of oil equivalent in 2015.

Mol is looking to expand production and acquisitions after facing dwindling reserves in eastern Europe, a civil war in Syria disrupting its operations and an almost 50% decline in oil prices last year.

The company expects downstream earnings before interest, taxes, depreciation and amortization to increase to between USD1.3 billion to USD1.4 billion/year by 2017 from USD870 million in 2014 as a result of an efficiency improvement program starting in 2015, Horvath said. The company seeks to generate close to USD900 million in normalized cash flow in three years, he added.

As MRC informed earlier, MOL is applying its squeeze-out right for shares of petrochemicals company TVK, a Hungarian manufacturer of olefins and polyolefins such as polyethylene and polypropylene. The agency added that MOL wound up a voluntary public purchase offer for the shares on Friday, raising its stake in TVK from 94.86% to 99.1%, providing all preconditions were met.

MOL previously said Hungarian authorities had dismissed the allegations against MOL, which now holds a 49.1% share of INA. Hungary's government holds a 24.6% stake in MOL.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, oil, petrochemistry, MOL, TVK, Hungary.
Category:General News
|
| More

Leave a comment

MRC help

 


 All News   News subscribe