MOL - Low Quality EBITDA Beat, HUGE Tax Expense Drag Profit Into The Red
Low quality EBITDA beat, HUGE tax expense drag profit into the red
- MOL beat the consensus on CCS EBITDA (+3%) but due to two extraordinary items (impairments + huge tax expense reflecting expected solidarity tax in Croatia, Slovakia, Hungary) with a total effect of ca. USD 590m drag (equivalent of HUF 300 per share) net profit into the red. So far Q4’s CF was not affected by the huge tax increase, taxes paid was in line with historical norms (ca USD 70m). The beat on CCS EBITDA is rather low quality, HQ and intersegment came significantly better than expected - the delta is around USD 120m.
Magyar Olaj-Es Gazipari is an integrated oil and gas enterprise based in Hungary and active in central and eastern Europe. Co.'s core activities include: exploration and production of crude oil, natural gas and gas products; refining, transportation, storage and distribution of crude oil products in both retail and wholesale markets; importation, transportation, storage and wholesale trading of natural gas and other gas products; and the production and sale of olefins and polyolefins. TVK, the petrochemical affiliate of Co., is an olefin and polyolefin producer in Hungary.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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