43 slides from Mol Hungarian Oil & Gas Plc Class A's earnings presentation, Aug 9, 2024
Slide 1: Second Quarter 2024 Results
SECOND QUARTER 2024 RESULTS 9 AUGUST 2024
Slide 2: Disclaimer
DISCLAIMER "THIS 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, CAPI
Slide 3: Highlights of the Quarter
HIGHLIGHTS OF THE QUARTER
Slide 4: 2024 Guidance Reiterated
2024 GUIDANCE REITERATED H1 2023 H1 2024 2024 RESULTS RESULTS GUIDANCE GROUP PROFIT BEFORE USD 807 MN USD 916 MN ~USD 1.6 BN TAX 1 GROUP CLEAN CCS USD 1,125 MN USD 1,544 MN ~USD 3.0 BN EBITDA OIL & GAS 91.6 MBOEPD 92.2 MBOEPD ~90 MBOEPD PRODUCTION1 CRUDE PROCESSING2 5.95 MT 5.44 MT ~12 MT GROUP CAPE
Slide 5: Q2 2024 Clean CCS EBITDA at USD 825 mn
Q2 2024 CLEAN CCS EBITDA AT USD 825 MN ROBUST SALES IN DOWNSTREAM AND UPSTREAM AND RETAIL EXPANSION FUELLED RESULTS FINANCIALS MOL profit before tax reached USD 534 mn in Q2 and USD 916 mn YTD, progressing towards USD ~1.6 bn annual guidance Group Clean CCS EBITDA doubled YoY and increased by 15% Qo
Slide 6: TRIR Flat YoY and Meeting Guidance
TRIR FLAT YOY AND MEETING GUIDANCE SUSTAINALYTICS RATING IMPROVEMENT FROM HIGH TO MEDIUM RISK TOTAL RECORDABLE INJURY RATE (TRIR) TRIR RESULTS TRIR is slightly below the tolerable limit of 1.3 set for 2024 Most of the recordable injuries were slip & trip related injuries +1% (not related to oil & ga
Slide 7: Key Group Quarterly Financials
KEY GROUP QUARTERLY FINANCIALS
Slide 8: EBITDA at USD 825 mn in Q2 2024
EBITDA AT USD 825 MN IN Q2 2024 YOY AND QOQ COMPARISONS DISORTED BY EXTRAORDINARY TAXATION SEGMENT CLEAN CCS EBITDA (USD mn) COMMENTS +101% +15% Upstream 976 992 825 Stable extra tax-adjusted result with production and realized prices flat QoQ 718 283 Downstream 714 R&M sales slightly up despite the
Slide 9: Capex Up Significantly on Turnaround Works in Downstream
CAPEX UP SIGNIFICANTLY ON TURNAROUND WORKS IN DOWNSTREAM TOTAL GROUP CAPEX (USD mn) TOTAL GROUP CAPEX (USD mn) -40% +16% -40% +16% 614 605 614 605 0 337 370 337 370 350 320 350 320 1 14 486 1 3 76 3 72 197 87 197 191 197 266 233 335 119 185 4 1 162 41 119 5 33 29 23 16 23 6 80 70 84 19 32 35 33 Q1 2
Slide 10: Profit Before Tax at USD 916 mn
PROFIT BEFORE TAX AT USD 916 MN H1 2024 EARNINGS (USD mn) 1 – BELOW THE EBITDA LINE ITEMS 1,544 26 0 607 DS 701 75 28 177 1,570 CS 338 18 111 963 916 739 721 610 US 545 Other 40 Clean CCS CCS EBITDA excl. Special items DD&A and Profit from Total finance Income from Profit Income tax Profit for the N
Slide 11: Intersegment Elimination Weighing on Results in Q2
INTERSEGMENT ELIMINATION WEIGHING ON RESULTS IN Q2 Clean C&O EBITDA1 (USD mn) Comments -34% +59% -48 C&O Clean EBITDA showed USD 77 mn loss as Q2 -77 -117 includes seasonally higher expenses including CSR activity Q2 2023 Q1 2024 Q2 2024 Intersegment EBITDA (USD mn) EBITDA elimination negative due t
Slide 12: Income Tax Expense at USD 74 mn in Q2 2024
INCOME TAX EXPENSE AT USD 74 MN IN Q2 2024 DD&A (USD mn) Comments +20% 8% DD&A in line with higher asset base in waste management startup 264 291 316 Q2 2023 Q1 2024 Q2 2024 Total Financial expense (+) / gain (-) (USD mn) -26% Financial expense driven by HUF weakening agains 43 32 USD -50 Q2 2023 Q1
Slide 13: Operating Cash Flow Above Organic Investments
OPERATING CASH FLOW ABOVE ORGANIC INVESTMENTS WORKING CAPITAL RELEASE IN Q2 BUT STILL WEIGHS ON OPERATING CASH FLOW IN H1 OPERATING CASH FLOW FOR TOTAL OPERATION IN H1 2024 (USD mn) 365 607 54 994 916 111 805 275 719 685 Profit before tax Profit before tax Profit before tax DD&A Income tax paid Othe
Slide 14: Net Debt to EBITDA Increases with Dividend Payment
NET DEBT TO EBITDA INCREASES WITH DIVIDEND PAYMENT INDEBTEDNESS SAFELY BELOW TOLERANCE THRESHOLD NET DEBT TO EBITDA (x) GEARING (%) 2.0 30 27.3 25.2 1.61 25 1.5 20.6 1.31 19.6 19.4 20 18.6 18.1 17.5 0.97 14.0 14.2 1.0 15 0.82 0.82 12.0 0.74 11.4 0.65 0.65 0.64 0.59 10 0.5 0.41 0.30 5 0 2014 2015 201
Slide 15: Downstream Q2 2024 Results
DOWNSTREAM Q2 2024 RESULTS
Slide 16: Downstream EBITDA Above USD 400 mn in Q2 2024
DOWNSTREAM EBITDA ABOVE USD 400 MN IN Q2 2024 HIGHER SALES ALSO CONTRIBUTED TO THE RESULT DESPITE LOWER CRUDE PROCESSING QUARTERLY CLEAN CCS EBITDA (USD mn) TOTAL CRUDE PROCESSED (kt)1 TOTAL PRODUCT SALES (kt) +2% +15% +298% +40% 469 456 5,384 408 -14% -7% 4,752 288 4,762 4,833 4,061 310 1,253 277 4
Slide 17: Refining Margin Down QoQ Mainly on Energy Component
REFINING MARGIN DOWN QOQ MAINLY ON ENERGY COMPONENT PETCHEM MARGIN RECOVERY STILL UNSTABLE REFINING MARGIN (USD/bbl) COMMENTS Brent-based MOL Group refinery margin (USD/bbl) 18 16.6 Brent-based refining margins turned downwards QoQ as diesel crack Brent-based Complex refinery margin (MOL+Slovnaft) (
Slide 18: EBITDA Driven Higher YoY by Better Margins from a Low Base
EBITDA DRIVEN HIGHER YOY BY BETTER MARGINS FROM A LOW BASE LOWER PRODUCTION VOLUMES DUE TO TURNAROUNDS HAVE NEGATIVE IMPACT DOWNSTREAM CLEAN CCS EBITDA YoY, Q2 2024 VS. Q2 2023 (USD mn) COMMENTS 437 408 29 Contribution from R&M price & margin positive YoY due to higher Brent-based refining margin an
Slide 19: Consumer Services Q2 2024 Results
CONSUMER SERVICES Q2 2024 RESULTS
Slide 20: CS Q2 EBITDA Marked 11% Growth YoY
CS Q2 EBITDA MARKED 11% GROWTH YOY NON-FUEL SALES REMAINS THE MAIN ENGINE FOR GROWTH QUARTERLY EBITDA (USD mn) EBITDA YoY, Q2 2024 VS. Q2 2023 (USD mn) 11% +11% 200 194 26 20 14 6 175 5 250 194 175 144 144 127 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 EBITDA Fuel volume Non-fuel OPEX One-offs
Slide 21: Higher Throughput Drives Increase in Fuel Volumes
HIGHER THROUGHPUT DRIVES INCREASE IN FUEL VOLUMES UNIT FUEL MARGIN CONTINUES DECREASING TREND TOTAL VOLUMES SOLD (mn litres) FUEL THROUGHPUT/SITE1 (mn litres) +4% 4% 4Y CAGR: +10.8% 2 306 0.92 0.96 1 969 1 991 2 057 0.91 1 706 1 817 0.79 0.64 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2020 Q
Slide 22: Non-Fuel Margin Continues Organic Growth
NON-FUEL MARGIN CONTINUES ORGANIC GROWTH NON-FUEL MARGIN SHARE INCREASED TO 37.5% NON-FUEL MARGIN (USD MN) 1 TOTAL NON-FUEL TURNOVER (USD MN) 1 +21% +14% 159 149 546 496 123 128 436 456 445 119 382 98 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Non
Slide 23: Upstream Q2 2024 Results
UPSTREAM Q2 2024 RESULTS
Slide 24: E&P EBITDA Increased to USD 283 mn in Q2 2024
E&P EBITDA INCREASED TO USD 283 MN IN Q2 2024 PRODUCTION AND REALIZED PRICES FLAT QOQ QUARTERLY EBITDA (excl. special items) (USD mn) OIL PRICES 134.0 140 +187% +8% 113.9 120 102.2 100 103.9 100.8 88.9102.4 84.3 83.2 85.0 94.5 107.5 81.2 78.1 81.8 81.4 86.8 80 93.6 97.1 77.8 75.0 74.4 75.1 75.4 375
Slide 25: Unit Free Cash Flow at 27 USD/bbl in Q2 2024
UNIT FREE CASH FLOW AT 27 USD/BBL IN Q2 2024 RESULTING IN A QUARTERLY SFCF GENERATION ABOVE USD 200 MN QUARTERLY PRICE REALIZATION, EBITDA, SFCF (USD/boe) 90 87 84 85 81 83 80 78 70 68 62 63 60 78 50 49 67 40 67 Brent 36 34 37 30 Realised HC price 28 20 42 Unit EBITDA 25 15 27 10 24 15 Unit FCF* 0 3
Slide 26: Stable EBITDA Delivery After Special Taxation
STABLE EBITDA DELIVERY AFTER SPECIAL TAXATION UPSTREAM EBITDA QoQ, Q2 2024 VS. Q1 2024 (USD mn) COMMENTS 11 -2 -1 15 -1 Stable EBITDA on QoQ basis after adjusting for 1 -1 revenue-based tax Includes: Realized HC prices remained stable and had no Revenue-based tax (USD +15mn) 284 283 material impact
Slide 27: Production Remains Above Guidance of 90 mboepd
PRODUCTION REMAINS ABOVE GUIDANCE OF 90 MBOEPD THANKS TO HIGHER INTERNATIONAL PRODUCTION IN KRI AND KAZAKHSTAN PRODUCTION BY COUNTRY (mboepd) COMMENTS Production totalling 92.1 mboepd in Q2 2024, down 0.2 95.8 95.5 mboepd QoQ (vs. Q1 2024): Associated 91.5 92.3 92.1 companies* 10.8 87.4 86.8 Associa
Slide 28: Stable Group Unit Opex QoQ
STABLE GROUP UNIT OPEX QOQ CAPEX DOWN MAINLY DUE TO LOWER EXPENDITURE IN KURDISTAN UNIT OPEX (USD/boe) UNIT OPEX YTD (USD/boe) GROUP FULLY CONSOLIDATED 7.5 (INCL. JVS/ASSOC.) SUBS. -2% 7.0 7.2 -2% 0% 6.5 6.3 6.6 6.5 6.4 6.2 6.2 6.0 5.9 5.6 6.0 5.9 6.3 6.2 5.8 5.8 5.8 5.8 5.5 5.3 5.7 5.1 5.5 5.0 4.9
Slide 29: Circular Economy Services Q2 2024 Results
CIRCULAR ECONOMY SERVICES Q2 2024 RESULTS
Slide 30: CES EBITDA Below Breakeven
CES EBITDA BELOW BREAKEVEN 2024 CAPEX PROJECTS AIMING AT INTENSIFICATION OF SELECTIVE WASTE COLLECTION QUARTERLY EBITDA1 (USD mn) COMMENTS Q2 EBITDA of USD 10 mn loss due to conservative approach in cost accruals especially with regards to Depository Refund System (DRS) 20 18 ramping up during the q
Slide 31: Supporting Slides
SUPPORTING SLIDES
Slide 32: SFCF at USD 859 mn in H1 2024
SFCF AT USD 859 MN IN H1 2024 SIMPLIFIED FCF* (USD mn) +240% +14% 639 457 517 402 208 386 190 218 107 134 12 121 142 153 0 55 79 49 -16 -29 -33 -58 -65 -137 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 US DS CS CES GM C&O (incl. intersegment) 32 *Simplified Free Cash Flow = Clean CCS EBITDA – tot
Slide 33: Working Interest Based Production Slightly Increased QoQ
WORKING INTEREST BASED PRODUCTION SLIGHTLY INCREASED QOQ QUARTERLY WORKING INTEREST PRODUCTION BY COUNTRY1 (mboepd) 130.3 117.5 117.5 121.8 122.8 122.9 Associated 17.2 15.7 17.0 16.0 17.3 17.2 companies* Other 4.4 4.2 3.8 4.3 4.1 4.0 0.1 KRI 8.6 5.9 2.8 4.8 6.4 8.1 5.9 6.0 Pakistan 6.0 6.1 5.1 34.9
Slide 34: Upstream: Operational Update (1)
UPSTREAM: OPERATIONAL UPDATE (1) Hungary Croatia EXPLORATION EXPLORATION Vecsés-1 well production started and Vecsés-3 well drilled Block Sava-07: 2 wells have been tested and 1 well drilled; drilling of the 4th Álmosd-É-4 shallow gas well successfully drilled and completed well is in progress FIELD
Slide 35: Upstream: Operational Update (2)
UPSTREAM: OPERATIONAL UPDATE (2) Pakistan Russia EXPLORATION 2024 well workover program: 5 workovers performed TAL block (operated): Razgir-1 well drilled; well testing is in progress, with Construction work program is in progress: pipelines construction and encouraging results, potentially allowing
Slide 36: Upstream Capex by Region and by Type in H1 2024
UPSTREAM CAPEX BY REGION AND BY TYPE IN H1 2024 ORGANIC CAPEX BY REGION AND BY TYPE (USD mn) HUN CRO KRI PAK AZE OTHER Total – H1 2024 Total – H1 2023 EXP 12.9 7.2 0.0 1.5 0.9 0.0 22.5 17.0 DEV 17.2 13.2 0.0 2.7 64.5 3.6 101.2 127.3 Other 3.5 17.5 1.5 0.2 1.5 0.0 24.2 20.7 Total – H1 2024 33.7 37.9
Slide 37: Gas Midstream: Key Financials
GAS MIDSTREAM: KEY FINANCIALS EBITDA excl. spec. items (USD mn) CAPEX (USD mn) -7% -30% 19 79 79 74 60 55 52 7 6 5 4 1 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 KEY FINANCIALS (USD mn) COMMENTS Q2 2024 Q2 2023 YoY % H1 2024 H1 2023 YoY % EBITDA d
Slide 38: Sustainability Indicators
SUSTAINABILITY INDICATORS CO2 under ETS (mn t) HC Spill above 1bbl (m3) Tier1 PSE +6% +200% 2.0 100 +29% 4 1.52 71.81 1.41 1.47 1.40 1.33 1.5 3 1.0 50 2 22.60 1 1 3 3 13.34 16.43 17.24 0.5 1 0 0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q
Slide 39: Macro Indicators
MACRO INDICATORS BRENT (USD/bbl) MOL REFINERY MARGIN* (USD/bbl) HUF/USD (Q avg.) 120 20 450 Brent-based MOL Group 100 15 400 Brent-based Complex (MOL + Slovnaft) 80 350 10 60 300 40 5 250 20 0 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2022 202
Slide 40: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS YoY Q1 2024 Q2 2024 Q2 2023 Income Statement (HUF million) H1 2024 H1 2023 Ch % Ch % 2,046,208 2,372,642 1,960,818 21 Net sales 4,418,850 4,007,364 10 29,004 10,912 31,827 (66) Other operating income 39,916 49,600 (20) 2,075,211 2,383,554 1,992,645 20 Total o
Slide 41: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Balance Sheet (HUF million) 30 Jun 2024 31 Dec 2023 Ch % Balance Sheet (HUF million) 30 Jun 2024 31 Dec 2023 Ch % Assets Equity and Liabilities Non-current assets Equity Property, plant and equipment 4,234,465 3,997,801 6 Share capital 79,443 79,192 0 Inv
Slide 42: Consolidated Statement of Cash Flow
CONSOLIDATED STATEMENT OF CASH FLOW YoY Q1 2024 Q2 2024 Q2 2023 Cash Flow (HUF million) H1 2024 H1 2023 Ch % Ch % 137,911 193,925 91,087 113 Profit / (loss) before tax for continuing operation 331,836 287,417 15 674 (41,567) 94 n.a. Profit / (loss) before tax for discontinued operation (40,893) 865
Slide 43: External Parameters
EXTERNAL PARAMETERS YoY Q1 2024 Q2 2024 Q2 2023 Macro figures (average) H1 2024 H1 2023 Ch % Ch % 83.2 85.0 78.1 9 Brent dated (USD/bbl) 84.1 79.7 6 (3.7) (3.5) (12.2) (71) Urals-Brent spread (USD/bbl, DAP India Urals quotation) (3.6) (14.7) (76) 27.6 31.7 35.1 (10) TTF gas price (EUR/MWh) 29.7 44.4