|MOL Rt. (Hungarian Oil and Gas Co.)|
|Key People||Chairman and CEO Zsolt Hernádi|
|Products||Hydrocarbon-based energy refining, storage and supply|
MOL Rt. is Hungary's dominant oil and gas company and the largest publicly-traded company on the Budapest Stock Exchange (BSE), comprising almost one-third of the total value of the BSE's BUX index. MOL recently saw its quarterly earnings and profits drop following 2008's global credit crisis and subsequent decline in energy prices.
MOL was founded in 1991 as the successor to Hungary's communist-era OKGT state-owned energy monopoly following a re-structuring of the entire Hungarian petroleum industry. Since then it has expanded its distribution operations into eastern and western Europe, the Middle East, Africa and some ex-Soviet nations and also owns three refineries in Hungary, Slovakia and Italy. MOL most recently became the largest shareholder of Croation oil and gas company INA and in January 2009 amended its agreement with the Croation government to take full control of INA.
MOL's 2008 third-quarter results saw earnings (EBITDA) fall 44% to 75.2 nillion Hungarian forints (HUF) compared to Q3 2007 and by 18% to HUF 300 billion over the first three quarters compared to Q1-Q3 2007. Operating profit plunged 62% year-on-year to HUF 36.6 billion for Q3 2008 and 26% to HUF 193 billion for Q1-Q3 2008. MOL's net debt at the end of 2008 was around two times its EBITDA, lower than the 2.74 ratio estimated by investment bank ING.
MOL Chairman and CEO Zsolt Hernádi has served in both positions since June 2001 after a year as board chairman. Hernádi had previously served seven years as CEO and board member of the Central Bank of Hungarian Savings Cooperatives and before that spent 1989-1994 at Kereskedelmi és Hitelbank (K&H Bank). He has been a member of the European Round Table of Industrials since 2001.
MOL recently cut the gross wholesale prices of gasoline and diesel sold to retailers by HUF 4 and HUF 6 per liter to HUF 235.4 per liter and HUF 235.9 per liter respectively, translating to a uniform retail price of about HUF 250 for both fuel types. The move eliminates the previous price differential between the two fuels, bringing diesel into line with regular gasoline.