MOL Group’s upstream production exceeds guidance level
BAKU, Azerbaijan, Feb.21
By Leman Zeynalova – Trend:
Upstream production by Hungarian MOL Group increased sequentially in the fourth quarter of 2019 and remained broadly unchanged in full-year 2019 at 111 mboepd, slightly above the guidance level, Trend reports citing the company.
Due to the lower oil and gas prices, this volume generated 17 percent lower earnings before interest, tax, depreciation and amortization (EBITDA) compared to the 2018 results, the company said in its report.
The report shows that Exploration and Production remained the key cash generator of MOL Group, providing a massive, nearly $700 million simplified free cash flow in 2019.
As for 2020 target, MOL Group said in Upstream it is twofold: to successfully complete the acquisition and to integrate the ACG assets that will add about 20,000 bpd to production; at the same time, the segment will continue to maximise value and cash flow generation of the existing assets through an efficient operation.
Downstream full year 2019 Clean CCS EBITDA dropped by 13 percent to $866 million, fully reflecting the weaker macro environment, said the company.
“In Q4 Clean CCS EBITDA declined to USD 191 million 21 percent lower compared to the last year’s fourth quarter as both refining and petchem margins were weaker at the end of last year, however refining margins were recovering in January-February 2020. Motor fuel demand growth remained very strong in the region in 2019, meaning a 3.4 percent increase that supported the Downstream segment,” reads the report.
MOL Group is an integrated, international oil and gas company, headquartered in Budapest, Hungary. It is active in over 40 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years in the industry. MOL’s exploration and production activities are supported by more than 75 years’ experience in the hydrocarbon field. At the moment, there are production activities in 8 countries and exploration assets in 13 countries. MOL Group operates four refineries and two petrochemicals plants under integrated supply chain management in Hungary, Slovakia and Croatia, and owns a network of 2,000 service stations across 10 countries in Central & South Eastern Europe.
MOL signed an agreement with Chevron in November to acquire its non-operated E&P and mid-stream interests in Azerbaijan, including a 9.57 percent stake in the Azeri-Chirag-Gunashli (“ACG”) oil field and an effective 8.9 percent stake in the Baku-Tbilisi-Ceyhan (“BTC”) pipeline for total consideration of $1.57 billion (subject to adjustments at closing)
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