The consumer services division of Hungarian fuel operator MOL Group has reported a 'flat' year-on-year performance in the third quarter of its financial year, despite operating 5% fewer forecourt outlets.
The division, which operates the group's fuel retail network, noted that fuel sales 'contributed positively' to its performance, with a shift towards premium products.
In addition, in non-fuel, the consumer services division reported an organic improvement in margin as demand shifted towards higher margin products.
MOL Group also operates extensive circular economy services, and saw a benefit from the nationwide introduction of the DRS (Deposit Refund System) countrywide in Hungary in July.
Overall Performance
Overall, MOL Group reported profit before tax of $503 million in the third quarter, which was 24% lower than the corresponding period a year ago. Nonetheless, the fuel operator is confident of meeting its annual guidance targets.
"We closed a mixed quarter in September," commented Zsolt Hernádi, chairman and CEO of MOL Group. "Due to the very challenging macro and fiscal environment our Downstream business performed less good. This was counterbalanced by the good production performance of our Upstream – it is especially great that we achieve success in realising potential in our mature assets in Hungary.
"It is also a very good sign that the Consumer Services managed to maintain its performance on flat while having significantly less service stations. The increased number of returned packages gives us a clear sign that our waste management is on good track and our strategic step to enter into the circular economy was a good one. Here we have great potential to develop further."
Hernádi cited the group's integrated business model, as well as the level to which it has been able to embed itself into the markets in which it operates, as a "good combination to maintain financial stability and energy security."
