MOL to speed up US$4.5 bn fuel-to-chemical strategy

Hungary’s oil and gas group MOL is setting its sights on increasing its EBITDA to US$2.6 billion by 2025 from US$2.3 billion this year and speeding up its transformation to a low-carbon business model.

Central Eastern Europe’s (CEE) leading fuel retailer will spend US$1 billion on new, low-carbon and sustainable projects, while transformation capital expenditure in its downstream operations could reach US$4.5 billion in the next ten years, it said.

MOL plans to accelerate fuel-to-chemicals transformation in its downstream segment, with the aim of “becoming a leading sustainable chemicals company in CEE”, it said in a statement.

The company cut refinery output, introduced part-time work and cut salaries for some staff last year as the pandemic hit oil prices.

“We have observed an unprecedented pace of changes around us recently, including rapid progress in the green energy transition,” Chairman/CEO Zsolt Hernadi said.

Read: MOL starts biofuel production at Danube Refinery

“Our updated strategy seeks to accelerate our transformation process to enhance MOL’s resilience.”

“Keeping a strong financial profile through a robust balance sheet and ample financial headroom remains a priority. This flexibility may be used to fund new business opportunities, including cash-generative M&A,” it said.

MOL operates refineries in Hungary, Slovakia and Croatia and has exploration and production assets in the North Sea and countries including Pakistan, Iraq, and Russia.