MOSCOW (MRC) -- MOL’s third-quarter clean current cost of supplies (CCS) earnings before interest, tax, depreciation and amortisation (EBITDA) for its petrochemical division fell by 90%, year on year, said the company.
The company said its margins for petrochemicals had slumped by 34% during the quarter, year on year. Despite this, earnings before interest and tax (EBIT, or operating profit) more than doubled.
MOL’s petrochemical integrated margin fell to €438/tonne in Q3 2022 from €600/tonne in Q2 2022 and EUR663/tonne in Q3 2021. The quarter-on-quarter decline was mainly attributed by the company to lower polymer/monomer spreads.
Q3 2022 petrochemical product sales stood at 303,000 tonnes, versus 367,000 tonnes in the same period of last year and 277,000 tonnes in Q2 2022.
Petrochemical sales increased quarter on quarter following the completion of planned Q2 2022 maintenance. Overall MOL, an integrated oil, gas, and petrochemicals group, recorded a net profit of Hungarian forint (Ft) 322.3bn (USD775.0m) in the third quarter, equivalent to a gain of 113% from Ft151.4bn in Q3 2021.
Third-quarter group net sales were up 78% year on year to Ft2.88tr. MOL said the estimated impact of fuel price regulation and windfall taxes on the group across central and eastern Europe amounted to approximately USD1.18bn in Q1-Q3 2022.
It added the potential introduction of the EU’s solidarity contribution by individual member states would be set to make a further negative impact on MOL’s profitability.
As MRC reported earlier, MOL Group (Budapest, Hungary) has recently announced that Rossi Biofuel (a joint venture wherein MOL Group and Envien Group are the 25-75% owners) inaugurated a new plant in Komarom, Hungary, which will significantly increase the biofuel production volume in the country. With this investment, MOL Group and Envien Group launched a technology in Europe that can boost greenhouse gas savings by more than 85%. With a capacity of 50,000 tons per year, the plant is the first in Europe to use the RepCat technology offered by Austrian firm BDI-BioEnergy International GmbH, which is highly flexible in terms of raw materials - it allows the processing of greasy wastes of different types and origins, such as used cooking oils, trap grease, animal fats or residues from vegetable oil production. Biodiesel produced in this way is one of the most climate-friendly fuels.
We remind that in March 2021, MOL became a biofuel producer through the realization of an investment in the Danube Refinery. Bio feedstock will be co-processed together with fossil materials increasing the renewable share of fuels and reducing up to 200,000 tons /year CO2 emission without negatively affecting fuel quality.