Page 8 - EurOil Week 08 2022

EurOil PERFORMANCE EurOil

Shell warns that LNG market will

remain tight in 2022

UK SHELL said on February 21 it expected the integrated gas, renewables and energy solutions,
global LNG market to remain tight in 2022, after Wael Sawan, commented. “As countries develop
Warm weather has also a 6% climb in demand last year. lower-carbon energy systems and pursue net-
meant less gas storage In its latest LNG outlook, the oil major said zero emissions goals, focusing on cleaner forms
withdrawals. that growing demand in China and South Korea of gas and decarbonisation measures will help
drove the increase in consumption last year, LNG to remain a reliable and flexible energy
with China raising its imports by 12mn tonnes source for decades to come.”
to 79mn tonnes, surpassing Japan as the world’s To avoid future price spikes, Shell said a more
largest buyer. Chinese LNG buyers signed long- strategic approach was needed to ensure that gas
term contracts for more than 20mn tonnes per supply remains reliable and flexible in the future.
year of supply during 2021. It forecast that an LNG supply-demand gap was
Exports grew last year in spite of various out- expected to emerge in the mid-2020s, stressing
ages, including in Australia and Norway, thanks the need for extra investment to meet rising
to a surge in US deliveries of 24mn tonnes. This demand, particularly in Asia.
means the US is on track to become the world’s Global LNG demand is set to exceed 700mn
largest exporter this year. tpy by 2040, Shell said, representing a 90%
“Last year showed just how crucial gas and increase on the level in 2021. The majority of this
LNG are in providing communities around the growth – 70% – will originate in Asia, as indig-
world with energy they need as they strived to enous production there declines, regional econ-
get back on track following the difficulties caused omies grow and LNG replaces higher-emissions
by the COVID-19 pandemic,” Shell’s director for energy sources. ™

MOL reports strong Q4 on high oil price

HUNGARY HUNGARIAN oil and gas company MOL’s Q4 the operating profit of the segment jumped to
net income jumped to HUF110bn (€309mn) HUF349bn from HUF7.7bn in the base period.
MOL’s main segments from HUF15bn in the base period, lifted by Upstream revenue climbed 70% to
all reported stronger wider refining margins and higher oil and gas HUF677bn and operating profit reached
performance. prices, the company said in an earnings report HUF202bn, improving from a loss of HUF51bn
before the bell on February 18. a year earlier.
MOL’s revenue climbed 78% to HUF1.78 The consumer services business’s turnover
trillion. The cost of raw materials and consuma- increased 34% to HUF1.944 trillion, while its
bles used rose 87% to HUF1.34 trillion, but total operating profit rose 25% to HUF143bn, mainly
operating costs increased just 58% to HUF1.62 affected by the fuel price cap in Hungary and
trillion, lifting operating profit to HUF162bn. Croatia.
MOL’s downstream revenue rose 86% to In dollars, MOL’s Ebitda, excluding one-offs
HUF1.56 trillion and the operating profit of the and at current cost of supply, came to $3.53bn for
business reached HUF81.5bn, boosted by high the full year, exceeding the upgraded guidance
refinery and petrochemical margins. for $3.2bn.
Surging oil and gas prices lifted upstream Organic capex reached $546mn in Q4
revenue 82% to HUF223bn. Operating profit organic spending and reached $1.54bn in 2021,
reached HUF79bn, improving from a HUF24bn slightly below the guidance but exceeding the
loss in the same period a year earlier. base by 9%.
Turnover of MOL’s consumer services divi- MOL chairman-CEO Zsolt Hernadi said
sion surged 50% to HUF537bn, but the busi- MOL’s adjusted Ebitda for 2022 is expected “to
ness’s operating profit slipped 13% to HUF24bn. reach or even exceed” $2.8bn. While acknowl-
For the full year, MOL’s net income reached a edging expectations that the external environ-
record HUF526bn, after racking up a HUF18bn ment will “remain volatile and unpredictable”, he
loss in 2020. Earnings per share came to said that the construction of MOL’s new polyol
HUF731. Revenue increased 47% to HUF6 tril- complex continued on schedule and noted the
lion, while total operating costs rose just 34% to company’s recent acquisitions of petrol station
HUF5.38 trillion. networks in Slovenia and Poland, strengthen-
Operating profit reached HUF613bn. Down- ing its consumer service portfolio. MOL puts its
stream revenue rose 56% to HUF5.25 trillion and organic capex at $1.7bn-1.8bn for 2022. ™

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