MOSCOW (MRC) -- MOL’s petrochemicals division third-quarter Clean current cost of supplies (CCS) earnings before interest, tax, depreciation and amortisation (EBITDA) rose nearly fourfold on the back of stronger margins, said the company.
MOL Group announced its financial results for the third quarter of 2021. Supported by the macro-economic environment, the doubling petrochemicals margins compared to last year and the internal performance of the company, Clean CCS EBITDA strongly rebounded and came in at USD 1,025mn in Q3 2021. This result brought Q1-Q3 2021 EBITDA to USD 2,583mn that allows MOL to further upgrade full year guidance to reach or even exceed USD 3.2bn. Organic capital expenditure was 18% higher year-on-year in Q3 2021, reaching USD 360mn of which USD 68mn was spent on transformational projects including the Polyol plant construction. Meanwhile, world market perturbances, soaring commodity prices, logistics difficulties and the 4th wave of Covid-19 pandemic create an overall relatively unpredictable operational environment.
Chairman-CEO Zsolt Hernadi commented the results: “The good results of the third quarter have been supported by the favorable external environment and the rebounding regional economic growth. At the same time we also leveraged our strengths, the resilient integrated business model and our highly cost-efficient asset base and operation.
"Our very strong year-to-date 2021 delivery allows us to further upgrade our annual EBITDA guidance, which is expected to reach or even exceed USD 3.2bn. At the same time soaring commodity prices and the implications of the
coronavirus pandemic pose a significant risk to the economy and generate a very volatile operational environment.
"As a result, we remain focused to maintain financial and operational resilience and deliver on our longer-term sustainability related commitments. A higher year-to-date free cash flow generation allows us to fund our sizeable upcoming transformational investments within the framework of MOL’s 2030+ strategy."
As MRC informed before, 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 the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.
MOL Group is an integrated, international oil and gas company with its headquarters in Budapest, with an international and dynamic workforce of 25,000 in more than 30 countries and an industrial history of more than 100 years. MOL's exploration and production activities are supported by more than 80 years of experience in the hydrocarbon industry. It currently has extraction activities in 9 countries and has research assets in 14 countries. MOL Group operates three refineries and two petrochemical plants under integrated supply chain management in Hungary, Slovakia and Croatia, and its retail network includes 1,940 filling stations in 10 countries in Central and South-Eastern Europe.