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MOSCOW (MRC) -- MOL (Budapest, Hungary)
has reported a 58% decline year on year (YOY) in its downstream EBITDA earnings
to USD110 million for the second quarter on a current cost of supply (CCS)
basis, due largely to negative refinery margins, despite a “resilient”
contribution from its petrochemical activities, reported Chemweek.
The company, which does not
break out its petchem earnings separately, says the quarter featured major
operational challenges “with unprecedented price and margin movements.” The
contribution from its petchems activities “remained resilient, as both margins
and volumes held up reasonably well during the pandemic,” it says.
MOL’s
integrated petchem margin averaged EUR431/metric ton (USD507/metric ton) in the
quarter, up 2% YOY, with robust sales, especially in May when it recorded its
highest ever sold volume, it says. The integrated petchem margin declined
gradually during the quarter from a very high level in March and April as oil
prices rose, “but the margin overall remained at a supportive level in both the
second quarter and July,” it notes.
The company’s polyols project is now
65% complete, with all major prefabricated equipment on site and the
transportation of all oversize equipment via river or sea completed, MOL says.
“While some small delays are likely due to the pandemic, MOL remains fully
committed to complete this flagship investment according to plans,” it says.
Capital expenditure on the polyols project totaled USD101 million in the second
quarter.
MOL’s total olefins production in the quarter was down 5% YOY at
504,000 metric tons, while total butadiene production plunged 62% to 23,000
metric tons. Total polymers production was virtually flat YOY at 301,000 metric
tons. External total petchem sales output totaled 372,000 metric tons, up 6% on
the prior-year quarter, with the company’s polymer products making up the
majority of the total with 307,000 metric tons of sales, up 12% YOY.
MOL
swung to a net loss for the group in the second quarter of USD142 million, from
earnings of USD270 million a year earlier, on sales that declined 45% YOY to
USD2.59 billion due to the pandemic and the worldwide economic crisis, it says.
It has reconfirmed its 2020 capex guidance of up to USD1.5 billion.
As
MRC informed
before, in late March, 2020, Hungarian MOL Group started production of
hand and surface sanitizers to offer protection against the
coronavirus.
We remind that MOL Petrochemicals Company (formerly known as
TVK, part of the MOL Group), the only Hungarian producer of olefins and
polyolefins, announced force
majeure on the supply of polypropylene (PP) from plant No. 4 at the
petrochemical complex in Tiszaujvaros (Tiszaujvaros, Hungary) on 23 September
2019.
Ethylene and propylene are feedstocks for producing polyethylene
(PE) and polypropylene (PP).
According to MRC's DataScope report,
PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000
tonnes. High density polyethylene (HDPE) accounted for the main decrease in
imports. At the same time, PP imports into Russia rose in the first six months
of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer
(homopolymer PP) accounted for the main increase in imports.
MOL
Hungarian Oil and Gas PLC is an integrated oil and gas company. The Company
produces crude oil, petroleum products, bitumens, lubricants and natural gas.
MOL owns and operates refineries, oil and gas pipelines, service stations, and
natural gas storage facilities. |
