MOL Magyar Olaj (MOL) Q1 2025 earnings summary

Executive summary

• Q1 2025 profit before tax rose 23% YoY to USD 546 million, with Clean CCS EBITDA up 16% to USD 833 million, achieving over a quarter of full-year profit and EBITDA targets despite increased external risks and volatility.

• Internal performance remains solid, but the external environment is more challenging and less predictable than anticipated at the start of the year.

• All key segments improved performance despite macroeconomic headwinds and economic slowdown.

• Regular and special dividend totaling HUF 275 per share approved, up 10% from 2024.

Financial highlights

• Profit before tax increased by 23% YoY to USD 546 million; Clean CCS EBITDA rose 16% YoY to USD 833 million.

• Net income for Q1 2025 was nearly USD 400 million; profit for the period to equity holders was HUF 152,343 million.

• Operating cash flow after working capital was USD 470 million, covering organic CapEx and part of dividend payments.

• Net debt to EBITDA ratio improved to 0.64, maintaining comfortable headroom.

• Simplified free cash flow for Q1 2025 was USD 672 million, up 67% YoY.

Outlook and guidance

• 2025 guidance is maintained, but risks to achieving targets have increased due to macroeconomic and regulatory uncertainties.

• Group profit before tax guidance for 2025 is ~USD 1.6 billion; Clean CCS EBITDA expected to exceed USD 3.0 billion.

• Annual production guidance for upstream remains at 92,000-94,000 barrels of oil equivalent per day.

• Downstream processing guidance is 12 million tons for the year.

• Effective tax rate expected to be around 25% for the year.