Mol Hungarian Oil & Gas Plc Class A · BET:MOL
Mol Hungarian Oil & Gas Plc Class A — MOL Group — Q3 2010 Earnings Presentation
19 slides from Mol Hungarian Oil & Gas Plc Class A's earnings presentation, Nov 17, 2010
Slide 1: Results of the Third Quarter of 2010
Results of the Third Quarter of 2010 17 November 2010
Slide 2: Disclaimer
Disclaimer "This "T presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, ca
Slide 3: Continuously improving operating results
Continuously improving operating results Q2 2010 Q3 2010 Q3 2009 Ch. % (IFRS), in HUF billion Q1-Q3 Q1-Q3 Ch. % 2009 2010 CONTINUING OPERATIONS 1,048.4 1,181.9 922.0 28 Net sales revenues 2,253.1 3,096.6 37 123.9 163.3 98.1 66 EBITDA 329.8 417.4 27 159.8 193.1 98.3 96 EBITDA excl. special items(1) 2
Slide 4: CAPEX spending was in line with our plan
CAPEX spending was in line with our plan In HUF bn* 200 160 72 120 85 77 80 68 43 73 40 63 14 7 3 0 4 E&P R&M G&P Petchem C&O Q1-Q3 2009, MOL incl INA Q3 contribution Q1-Q3 2010, MOL incl INA MOL - Non cash item (Pearl) ► CAPEX spending was HUF 240.9 bn (11% lower than previous year) in Q1-Q3 2010,
Slide 5: Upstream - Stable macro environment
Upstream - Stable macro environment Brent (USD/bbl) HUF/USD average 100 240 1 80 -2 200 160 60 120 218,7 216,1 40 78,2 76,9 80 ► Oil prices remained relatively stable within 20 the 70-85 USD/bbl range during Q3 2010, the 40 Brent averaged at 76.9 USD/bbl in Q3 2010, 2% 0 0 lower than in the previous
Slide 6: Upstream – Production increased 9% year-on-year in Q3
Upstream – Production increased 9% year-on-year in Q3 Daily hydrocarbon production (boepd) 150 0,7 Other International 6,1 condensate 9 5,8 0,2 6,6 8,6 Croatian condensate 120 6,1 3,1 ► In the third quarter, total hydrocarbon Hungarian condensate production was 142,000 boe/day 38,0 29,3 ►Crude oil p
Slide 7: Upstream – Strong results due to international operation
Upstream – Strong results due to international operation Operating profit* (HUF bn) Average hydrocarbon production (thboe/d) ► Operating profit* increased to HUF 150 84 10 -2 81.7 bn, up 133% vs. Q3 2009 and 10% 72 120 vs Q2 2010 60 90 48 145,0 81,7 142,0 36 74,1 60 24 30 Key drivers y-o-y 12 0 0 Q2
Slide 8: Downstream – Improving macro environment in October
Downstream – Improving macro environment in October Brent-Ural differential Crack spread – premium (USD/bbl) unleaded, gasoline (USD/t) ►The external conditions in Q3 2010 3 150 -20 showed mixed picture, compared to Q2 2,5 120 19 2010, but favored our result. 2 90 -50 1,5 56 60 140,9 112,9 134,8 ►Di
Slide 9: Downstream - Slightly improving diesel demand in Q3 in the region
Downstream - Slightly improving diesel demand in Q3 in the region Real GDP for Gasoline Diesel Motor Fuel % change 2010 Demand Demand Demand y-o-y Jul-Sept Jul -Sept Jul -Sept Legend: demand change Q3 2010 / Q3 2009 (%) Hungary 1.1% (8.5%) (2.0) (4.2) 8.5% -2.1 % Slovakia 4.4% 2.8% 16.8% 12.2% Gasol
Slide 10: Downstream - Strong operating profit improvement
Downstream - Strong operating profit improvement ► Operating profit* improved by 85% EBITDA* (HUF bn) Operating profit* (HUF bn) to HUF 38.5 bn in Q3 q-o-q 70 40 60 Key drivers 42 85 30 50 ► The profit was influenced positively by 40 63,4 20 38,5 ► higher sales volume by 14,7% in line 30 44,7 with s
Slide 11: Petrochemicals – Improving operating profit in Q3 2010
Petrochemicals – Improving operating profit in Q3 2010 EBITDA (HUF bn) Operating profit (HUF bn) ► Operating profit more than tripled to 10 10 HUF 6.0 bn compared to Q2 2010 77 8 8 Key drivers 6 6 10,6 ► the more favourable petrochemical margin, 4 4 275 ► the increased sales volumes and 6,0 6,0 2 2
Slide 12: Gas & Power – Temporary freezing of gas tariffs affected negatively the results
Gas & Power – Temporary freezing of gas tariffs affected negatively the results of FGSZ, as the main profit contributor Gas & Power EBITDA* Gas & Power operating (HUF bn) profit* (HUF bn) 30 30 ► Operating profit* decreased to HUF 8.8 24 24 bn in Q3 2010 -66 18 18 26,1 -58 FGSZ Zrt. 12 12 20,7 6 13,
Slide 13: Key projects and 2011 outlook
Key projects and 2011 outlook 13
Slide 14: Outlook for 2011 - premises
Outlook for 2011 - premises Average Q1-Q3 MAIN EXTERNAL PARAMETERS 2004-08 2009 2010 2011 Brent dated (USD/bbl) 65.5 61.7 77.1 82.0 Crack spread – premium unleaded (USD/t) FOB ROTT 121.8 112.5 133.9 130.0 Crack spread – gas oil (USD/t) FOB ROTT 135.4 68.8 81.7 81.0 Crack spread – naphtha (USD/t) FOB
Slide 15: Upstream - Promising field development and exploration activity
Upstream - Promising field development and exploration activity Upstream Upstream production production is is expected expected around around 145-150 145-150 th th boe boe per per day day in in 2011 2011 Hayan Hayan Block Block will will strengthen strengthen the the production production base base
Slide 16: Ongoing integration and efficiency improvement in Downstream
Ongoing integration and efficiency improvement in Downstream Rijeka Refinery Product yields 0% 25% 6% 1% Rijeka Rijeka Phase Phase 11 –– first first step step towards towards efficient efficient INA INA Downstream Downstream 28% ► Start up process of grass-root Hydrocrack complex has already 2010 E
Slide 17: Gas & Power – diversification of gas supply
Gas & Power – diversification of gas supply Gas transmission Romanian Interconnector - Gas already flowing Slovakian Baumgarten interconnector Velky Kapusany ► Gas flowing since 3rd August Bratislava Capacity ► 80% of total capacity is booked in long term Mosonmagyaróvár extension Budapest contracts
Slide 18: Thank you for your attention!
Thank you for your attention! Financial reports, announcements, other information and download possibilities can be found on our homepage: www.mol.hu MOL Investor Relations: Tel: +361-464-1395 E-mail: investorrelations@mol.hu 18
Slide 19: Refinery shutdown plan (2011)
Refinery shutdown plan (2011) Q1 2011 Q2 2011 Q3 2011 Q4 2011 Duna Refinery – gasoline Duna Refinery – diesel Slovnaft Refinery – gasoline Slovnaft Refinery – diesel IES Refinery – gasoline IES Refinery – diesel Rijeka Refinery – gasoline Rijeka Refinery – diesel Sisak Refinery – gasoline Sisak Refi