Page 13 - Euroil Week 45 2019
P. 13
EurOil PROJECTS & COMPANIES EurOil
MOL upgrades Ebidta guidance for 2020 after Azeri deal
HUNGARY
MOL acquired a 9.57% stake in the ACG oil project in Azerbaijan from Chevron.
HUNGARIAN oil and gas company MOL raised its guidance for 2020 Ebitda, cleared of one-off effects and adjusted for current cost of supply (CCS), to $2.4bn-2.6bn in an investor presenta- tion on November 7.
MOL said it upgraded the guidance to reflect the contribution of its recent acquisition of exploration and production as well as midstream stakes in Azerbaijan.
In the Q3 report, the company upped guid- ance for 2019 clean CCS Ebidta to $2.4bn from $2.3bn on improved oil prices and downstream margins.
MOL announced on Monday that it agreed to acquire a 9.57% stake in the Azeri-Chirag-Gu- nashli oil field in the Caspian Sea, one of the larg- est offshore oil fields in the world, and an 8.9% stake in the pipeline that transports the crude to a port on the Mediterranean Sea. MOL will pay Chevron $1.57bn for the assets, with the sale due to close in the second quarter of 2020 once it is cleared by regulators. This was the largest investment carried out by a Hungarian company abroad.
Investors were told that Ebidta is expected to gradually approach $3bn by 2023 as all three business segments, (upstream, downstream and consumer) visibly increase their contribution.
Upstream production guidance was raised to 120,000-130,000 barrels of oil equivalent per day for 2020-2023 and the annual simplified free cash flow target was increased to $700mn from over $500mm.
Downstream will continue to execute its stra- tegic growth projects and deliver net efficiency gains by 2023, while increasingly focusing on decarbonisation and sustainability, MOL said.
The Ebitda target for MOL’s consumer ser- vices business was raised from $500mn to $600mn by 2023, while the share of non-fuel margin is expected to rise close to 35% in the same period.
Bosnian utility signs gas deal with steelmaker
BOSNIA
BOSNIAN Federation gas firm BH-Gas has struck a five-year deal worth €39mn ($43mn) to supply gas to troubled steelmaker ArcelorMittal Zenica, its head, Jasmin Salkic, told reporters on November 7.
The contract, which replaces a previous 20-year supply deal, also covers deliveries to Toplana Zenica, a joint venture between Bosnian and international partners set up to build a new combined heat and power (CHP) plant. This sta- tion will supply ArcelorMittal’s facilities and the city of Zenica with power.
Speaking at a signing ceremony, Bosnian Federation Energy Minister Nermin Dzindic said the contract would ensure lower energy prices for households and companies.
The Toplana Zenica plant, whose investors
include ArcelorMittal, the Zenica city admin- istration and Finnish firms KPA Unicon and Finnfund, will take the place of an existing coal plant due for de-commissioning. The outdated facility is a major source of pollution in the city, which is located in a natural basin that serves as a trap for harmful emissions. Its equipment has also suffered from frequent outages.
The European Bank for Reconstruction and Development (EBRD) has provided an €48mn financing package to fund the new plant’s construction.
The ArcelorMittal Zenica complex has struggled with losses for years, and has had to shut down on several occasions in recent years because of unpaid energy bills. Steelmaking is very energy-intensive.
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