Hungarian company MOL Group saw profits slip in 2013 as its upstream segment faced lower production and prices.
The company posted a profit of 21.6
billion forint ($95.6 million), down 86% on the 151.5 billion forint
profit booked in 2012.
The large drop in profits came as
revenues slipped 2% year-on-year, from 5.5 billion forint to 5.4
MOL also pointed to write-downs which
amounted to 43.4 billion forint from its assets in conflict stricken
Syria, where its operations remain in a state of force majeure, as
hurting profits in 2013.
The company also booked about 18
billion forint in write-downs related to unsuccessful
exploration wells in the Kurdistan Region of Iraq and Oman.
Earnings before interest, tax,
depreciation and amortisation from MOL's upstream business segment
declined 8% in 2013, totalling 402.8 billion forint.
The fall in earnings came as output
slipped 12.5% to an average of about 103,700 barrels of oil
equivalent per day, compared to an average of roughly 118,500 boepd
MOL noted that offshore gas production
in Croatia decreased
due to natural depletion of gas fields in the North Adriatic area and
INA's lower share of production due to higher investments from its
block partner on exploration and developments projects. MOL owns
about half of the Croatian company INA.
said the company was looking to accelerate key projects in order to
mitigate its production decline and return to growth as soon as
possible, including the fast-track development of the Akri-Bijeel
Block in the Kurdistan region of Iraq which could deliver first oil
by the second quarter of the year.
line with our strategy we also took inorganic steps when we announced
our entry into the North Sea region,” he added.
acquired interests in oil producer projects which will support our
production growth even in short-term. Going forward down this road,
we are looking for attractive merger and acquisition opportunities to
achieve a step change in Upstream.”
hurting MOL's upstream results in 2013 was an 8.5% drop in the total
hydrocarbon price, to about $69.2 per boe, mainly driven by lower gas
prices in Hungary and in Croatia.