MOL GROUP
INVESTOR PRESENTATION
MAY 2024
MOL GROUP IN BRIEF
INTEGRATED CENTRAL EUROPEAN MID-CAP OIL & GAS COMPANY
CORE ACTIVITIES
UPSTREAM | DOWNSTREAM | CONSUMER | GAS | WASTE |
SERVICES | ||||
Exploration | Petrochemicals | MIDSTREAM | MANAGEMENT | |
Retail | ||||
Production | Refining | Mobility | ||
CLEAN CCS EBITDA BY SEGMENTS IN 2023 (USD MN)1
UPSTREAM | DOWNSTREAM | CONSUMER | GAS |
953 | 1,328 | 695 | 265 |
KEY FIGURES
CAPITAL MARKETS | BUSINESS / ASSETS | ||||
Market | Free float | Countries | ~25,000 | ~90 | Reserves |
cap. | (Mmboe) | ||||
30+ | |||||
USD 6.5 bn | 46% | Employees | Production | 335 | |
(mboepd) | |||||
INVESTMENT | USD 3.9 | 380 | Steam | 2,400+ | Retail |
cracker | transactions | ||||
GRADE | bn | Refinery | |||
capacity | Service | per day | |||
Credit | Available | capacity | |||
890 (ktpa) | stations 1,000,000+ | ||||
rating | Liquidity | (kbpd) |
2
(1) "Corporate and other" segment and intersegment eliminations omitted.
MOL IS THE DOMINANT O&G PLAYER OF THE CEE REGION
RUSSIA
AZERBAIJAN
#3
POLAND | |||||||
KAZAKHSTAN | |||||||
#1 | #1 | ||||||
#3 | #2 | SLOVAKIA | |||||
CZECHIA | #1 | #1 | |||||
HUNGARY | |||||||
PAKISTAN | |||||||
#2 | #2 | #3 | #3 | ||||
HQ | ROMANIA | IRAQ | |||||
SLOVENIA | |||||||
EGYPT | |||||||
FLAGSHIP COUNTRIES 1 | |||||||
CORE COUNTRIES 2 | |||||||
#1 | #1 | #2 | #2 | INTERNATIONAL UPSTREAM | |||
CROATIA | |||||||
SERBIA | FUEL WHOLESALE MARKET POSITION 3 | ||||||
# | |||||||
# | FUEL RETAIL MARKET POSITION 3 | ||||||
#1 | #1 | #3 | |||||
MONTENEGRO | 1 Countries with a refinery unit and at least 30% market share in Downstream and Consumer Services. | ||||||
BiH | 2 Countries with at least 10% market share in Consumer Services or fuel wholesale. | ||||||
3 Company estimates |
3
ESG: SECTOR-LEADING RATINGS AND DISCLOSURE
TOP POSITIONS ACROSS LEADING ESG RATINGS
INDEXES AND RATINGS
"AA" rating sixth | ||
year in a row, | ||
staying at the top | ||
~20% among | ||
integrated O&G | ||
peers | ||
Climate Change: | 'B' rating in Climate | |
Management | Change for the 3rd | |
Water Security: | year, above | |
regional peers in | ||
Awareness | several subtopics | |
Gold Medal
(top 5%)
DISCLOSURE
Leading ESG disclosure through Integrated Reporting using the following internationally recognised standards:
High risk category due to industry exposure - however, MOL Group's management of ESG risks is rated strong
ESG Risk Rating:
30.3 High risk
ESG Risk Management:
69.3 Strong
4
AGENDA
THE MOL GROUP EQUITY STORY | |
GROUP STRATEGY AND SUSTAINABILITY | 6 |
DOWNSTREAM | 12 |
WASTE MANAGEMENT | 20 |
CONSUMER SERVICES | 26 |
EXPLORATION AND PRODUCTION | 35 |
FINANCIALS | 42 |
SUPPORTING SLIDES | 50 |
Q1 2024 RECAP(LINK TO Q1 2024 RESULTS) | 59 |
THE MOL GROUP EQUITY STORY
GROUP STRATEGY AND SUSTAINABILITY
NAVIGATING THE COMPLEXITIES OF THE ENERGY TRANSITION
CHALLENGES AND OPPORTUNITIES IN A SHIFTING LANDSCAPE
AFFORDABILITY
Sustainability regulations: ambitious goals, but high uncertainty regarding markets & technologies
Geopolitical tensions: need for supply diversification & improved European competitiveness
Customer expectations: predictable & affordable energy supply
SUSTAINABILITY | SUPPLY SECURITY |
- The energy transition poses both challenges and opportunities, requiring a nuanced approach to balance sustainability, energy security, and economic competitiveness.
7
TRANSITION PATH BASED ON RESILIENT MOL GROWTH MODEL
HIGH-GROWTH AND PROFITABLE CEE CORE OPERATIONS AND INTERNATIONAL E&P ENABLE SMOOTH DIVERSIFICATION AWAY FROM FOSSIL FUELS
DS
E&P | UPSTREAM CEE |
Partly satisfies the HC need for Downstream and/or generates stable cash flow for the Group
REFINING AND MARKETING
Significant value added with highly efficient units securing the fuel supply
ESG | LOW CARBON CIRCULAR |
E&P | |
Already started low-carbon circular projects | |
DS | to enter into waste management, biogas |
production, green hydrogen, solar and other | |
means of energy production. Continued | |
expansion brings efficiency, self-reliance, and | |
compliance with EU sustainability-related |
regulations
CS
GM
of CEE
CONSUMER SERVICES
Mobility provider with 2,400 service stations across CEE to capture the consumer end of the O&G value chain
GAS MIDSTREAM
Regulated business (asset base and return) generating cash for high- return investments in other segments
E&P
CS | |
OPERATIONAL | ESG |
MODEL SECURES | |
TRANSITION WITH | |
GROWTH AND | DS |
RESILIENCE |
INTERNATIONAL UPSTREAM
Continued presence in Int'l upstream projects to generate cash and provide hedge for the other segments of the Group
DIGITISED RETAILER
Expansion in alternative fuel, car-sharing,non-fuel and highly digitised services allow for tackling transition
PETROCHEMICALS
Skewing downstream production towards petrochemicals also serves as a diversification from fossil fuels
8
HIGHER INVESTMENT TO SHAPE A SUSTAINABLE TOMORROW
LOW-CARBON CAPEX TO ACCELERATE AND MOVE BETWEEN 30-40% OF TOTAL CAPEX TO REALISE TRANSITION IN NEXT DECADES
2018-23 Organic CAPEX distribution (Since Shape Tomorrow Strategy)
(yearly avg., real 2024)
Sustain
Strategic
USD ~1.3 bn | 72% |
USD
~1.8 bn
28%
USD
~0.5 bn
2025-30 Organic CAPEX distribution
(yearly avg., real 2024)
56%
USD ~1.1 bn
USD
~1.9 bn
USD ~0.8 bn
44%
- 2025-2030Organic CAPEX spend to increase by 5%+ on average in real terms to accelerate transition
- Keep sustain CAPEX low (close to previous year's average level) thanks to efficiency gains resulting from past and ongoing projects
- Increase share of transformational CAPEX with low-carbon share of total CAPEX targeted at 30-40%
- Investments continue to be deployed selectively depending on risk-return profile
Low-
carbon
<10%
30-40%
9
2030 EMISSION REDUCTION TARGET RAISED
LIKE-FOR-LIKE SCOPE 1&2 GHG EMISSION REDUCTION EXPECTATION INCREASED TO 33% FROM PREVIOUS TARGET OF 30%; GHG EMISSION TO DECREASE BY 25% IN ABSOLUTE TERMS
SCOPE 1&2 GHG EMISSION (Mt)
Like-for-like1 | Absolute2 |
REDUCTION AMBITION HIGHER
MOL committed to achieve 2050 net climate
neutrality
8
7
6
5
4
3
2
1
0
-10%-30%
7.6
0.1 0.1 6.9
0.1 0.0
6.4
6.1
1.0 0.6
-33%
5.3 5.1
-25%
7.6
0.1 0.1 7.2 0.0
0.1
5.7
6.4 6.1
1.0 1.0
Absolute GHG emission reduction2 target for 2030 set at ca. 25% compared to 2019, equalling 33% on like-for like1 terms, more ambitious than in 2021 strategy
No segment-level targets set in order to allow capitalizing on integrated model and ensure flexibility
Absolute Scope 3 emissions are expected to decrease by 5-10% by 2030 (from 2019)
From 2024 onwards, GHG and TRIR KPIs are also introduced in managerial short-term incentives
2019 | 2022 | 2030 old 2030 new |
E&P DS CS Other Total
2019 2022 2030
STRONGER SHORT-TERM COMMITMENT TO ACHIEVE CLIMATE GOALS
1 Like-for-like emissions only include GHG emissions of 2019 asset base. | 10 |
2 Absolute target-setting methodology in line with requirements set by EU Directive 2022/2464 (CSRD) on corporate sustainability reporting. |
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MOL plc published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 22:48:48 UTC.