MRC -- Hungarian oil and gas group MOL (MOLB.BU) on Friday reported a surge in third-quarter net profit and EBITDA, boosted by strong refining margins on cheaper Russian crude, despite a government-imposed fuel price cap in Hungary, said the company.
MOL, which operates refineries in Hungary, Slovakia, and Croatia, raised its EBITDA outlook for 2022 to about $4.1 billion-$4.4 billion from its previous guidance of $3.3 billion.
According to a European Union (EU) deal on sanctions against Russia that exempted Russian oil delivered by the Druzhba pipeline going to Hungary, Slovakia and the Czech Republic, MOL's Danube refinery continues to receive Russian crude through the Druzhba pipeline.
Receiving cheap Russian Urals by pipeline has boosted margins for MOL even though the Hungarian government has imposed windfall taxes on the company, and a price cap has been in place for fuels since late-2021.
We remind, Russian fuel producers have been told by the government to prepare for the scrapping of all remaining restrictions on the export of diesel and gasoline. Russia, the world's top seaborne exporter of diesel, introduced a ban on fuel exports on Sept. 21 to tackle high domestic prices and shortages.