- MOL earmarks $2bn strategic capex for 2017-2021, above the annual organic capex of $1.0-1.1bn.
- MOL plans $80-130mn investment in Hungarian and Slovakian refineries to boost propylene and lubricants production.
- MOL allocates up to $1.9bn for petrochemicals, focusing on propylene yield and derivatives.
- MOL targets $2bn organic capex for E&P, with 35% for exploration in CEE, Pakistan, and Norway.
Strategic Capex and Financial Targets
MOL Group has announced its financial and operational targets for 2017-2021, following the "MOL Group 2030 – Enter Tomorrow" strategy. The company has earmarked at least $2bn as strategic capex for this period, in addition to the annual organic capex of $1.0-1.1bn.
Refining Investments
MOL will invest $80-130mn in its refineries in Hungary and Slovakia to enhance the flexibility of propylene and lubricants production. The company aims to increase the share of non-motor fuel products to above 50% by 2030 and plans to raise the seaborne crude intake to its landlocked refineries from 10% to 33% by 2030.
Petrochemicals Development
Up to $1.9bn will be allocated to develop MOL's petrochemicals business, focusing on propylene yield improvement and investment in propylene derivatives. More than $500mn will be invested in steam crackers in Hungary and Slovakia, and additional investments are planned for propylene oxide-based polyols.
Consumer Services Expansion
MOL aims to expand its regional service station network in the CEE and explore M&A opportunities outside its core countries. The company will modernize its service stations and roll out its Fresh Corner concept to 700 stations by 2018. Consumer goods and services are expected to contribute $450-500mn to EBITDA by 2021.
Exploration and Production (E&P)
MOL plans to spend over $2bn in organic capex for E&P from 2017-2021, with 35% allocated for exploration in CEE, Pakistan, and Norway, and 45% for development projects in CEE, UK, Pakistan, Kazakhstan, and Russia. The company aims to maintain its competitive cost position and sustain current production levels.
