BAKU, Azerbaijan, Aug.11
By Leman Zeynalova – Trend:
Hungarian MOL Group company has increase the number of filling stations in Europe from 1,909 as of June 2019 to 1, 933 as of June 2020, Trend reports with reference to the company.
The largest filling stations’ network of MOL Group is in Hungary with 468, followed by Croatia with 436, Slovakia - 254, Romania – 234, Bosnia and Herzegovina – 106, Serbia – 66, Czech Republic – 304, Slovenia – 54 and Montenegro – 11.
2020 started as a regular year for MOL Group. Operations were smooth and most KPIs were visibly above the previous year’s level and also above targets in the first 10 weeks of the year. And then everything changed. The COVID-19 pandemic and the economic crisis that came as a result created unprecedented challenges and reset priorities for everyone, including MOL. The virus exposed MOL, its employees, customers and partners to significant health and safety risks, it created unseen operational challenges during the lockdown and put MOL’s financial flexibility and strength to the test too.
The oil and gas industry was particularly hit hard as a combination of demand and supply-side shocks occurring at the same time. Under these circumstances MOL managed to continue to generate positive simplified free cash flows in H1 2020 of USD 368mn despite profitability (EBITDA) deteriorating visibly YoY. MOL introduced significant operational and financial adjustments in the wake of the pandemic, including reducing capex plans by more than 25% for 2020, initiating a comprehensive opex review and delaying decision on profit distribution from 2019. These measures all targeted the same goal, to allow MOL to operate with positive free cash flow generation in order to preserve its financial health and flexibility.
While the 2020 plans were rewritten, one key objection has not changed: MOL wants to maintain positive cash generation even amidst the crisis. The crisis has had no impact on MOL’s strategic projects and its intention to carry on with its long-term transition strategy, set out in the MOL 2030 program. The transformational projects (polyol, propylene splitter, delayed coker) are clearly prioritized and have been going ahead at full steam, as far as the mobility restrictions allowed. While the strategic directions remain intact, the current circumstances do necessitate a rethinking of priorities, resetting of the financial framework and updating the long term strategic and short-to-mid-term tactical and financial targets. Hence the Board initiated a strategy review and update process, the results of which will be communicated in about 6 months.
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