MOL Group Q1 results: retail fuel sales increased in Romania

MOL Group announced its financial results for Q1 2021. MOL Group delivered USD 664mn Clean CCS EBITDA in Q1 2021, 7% higher than last year in the same quarter, despite the third wave of the Covid-19 pandemic and the subsequent travel restrictions and lockdowns in Central and Eastern Europe. Strong oil- and gas prices, record high petrochemical margin and the good performance of Consumer Services contributed to the results. MOL Group produced USD 383mn simplified free cash-flow, 17% more than a year ago.

In Romania, retail fuel sales increased in the first 3 months of the year, compared to the same period in 2020. Thus, retail gasoline sales rose to 38 kt, up 4.7% compared to Q1, 2020. For diesel, the increase was 3.1%, with sales reaching the level of 132kt.

Chairman-CEO Zsolt Hernádi commented on the results: „We delivered over USD 660mn EBITDA in Q1 2021, a great achievement considering the pandemic situation during these past months. This strong performance is the product of previous strategic initiatives combined with our integrated resilient business model. I am particularly pleased to see a good set of results in both Petrochemicals and Consumer Services, the two important pillars of our transformational strategy.

Exactly one year ago I said we entered a period of uncertainty, but we at MOL definitely learned how to adapt and emerged stronger from the crisis. With the vaccination and gradual ease of lockdowns in our region, we have reasons to be optimistic. I am glad that the dividend payment was resumed after last year’s cancellation, as we share our good results with our investors.

 Q1 proved to be another milestone in the history of the Group. We published our 2030+ Strategy ‘Shape Tomorrow’ which will further accelerate the pace and scale of our transformation to be a key player in the low carbon, circular economy in CEE. With these results, I am confident that we have a strong foundation from which we will be able to shape tomorrow’s economies together with our stakeholders.”

• Upstream EBITDA reached USD 307mn, an increase of 66% compared to last year’s Q1 result and 70% higher than in Q4 2020. The good performance was driven by the continuously higher oil and gas prices and the contribution of the ACG asset in Azerbaijan. The 116.7 mboepd production volume was slightly lower than in the previous quarter, but it was 6% higher year-on-year, due to volumes boosted by ACG. Simplified free cash-flow contribution of Upstream doubled in comparison with Q1 2020 to USD 218mn.
• Downstream Clean CCS EBITDA came in at USD 254mn, 14% lower than last year in the same period, as a result of lower refinery volumes caused by mobility restrictions and the lower refinery margins. This decline was partly offset by the strong petrochemical performance, as the integrated petrochemical margin increased by 74% year-on-year, reaching EUR 873/t during March 2021. The polyol project exceeded 79% overall completion at the end of Q1.
• Consumer Services EBITDA increased by 30% in USD terms to highest-ever Q1 result, USD 115 mn, mostly driven by higher fuel and non-fuel contribution and supported by lower operating expense. Lower capex lead to 45% higher free cash-flow generation than a year ago. This good performance was reached despite the lower fuel sales volumes caused by the third wave of pandemic-related travel restrictions in CEE. The number of Fresh Corner sites rose to 984 in Q1 2021 from 955 at the end of 2020. In Q1 2021, MOL concluded a deal with the subsidiary of Marché International AG to buy the company that operates 9 restaurants connected to service stations in Hungary under the Marché brand.
• Gas Midstream EBITDA fell by 33% year-on-year in Q1 2021 to USD 48mn, as both transit revenues and regulated income fell as a result of materially decreased cross border capacity and transmission demand