MOL Group posts significant 2016 profit, exceeding target

BUDAPEST -- MOL Group has announced its financial results for 2016. MOL Group significantly outperformed its initial $2-billion target for 2016, and delivered a clean CCS EBITDA of $2.15 billion, which is only moderately down compared with the previous year.

Upstream has shown great resilience to the deteriorating external environment. A further 17% decline in Brent prices and a 23% decline in realized gas prices were offset by higher production and cost discipline. As a result, EBITDA remained nearly flat at $675 million, and the business generated over $250-million free cash flow equalling $7/boe. Production grew by 6% to 112,000 boed with additions from CEE’s onshore fields – where production was the highest since 2012 – Pakistan, UK and Baitugan field in Russia. Cost savings across the board resulted in a 13% decrease in OPEX per unit. The targets of the New Upstream Program have, therefore, been fully delivered.