Rating agency Moody’s Investors Service changed its outlook on Hungarian MOL and MOL Group Finance to “positive” from “stable,” according to its latest report.
The rating agency also affirmed the oil and gas company’s “Baa3” issuer rating and the “Baa3” rating of the backed senior unsecured Euro MTN program of MOL Group Finance.
“The positive outlook on MOL’s ratings reflects its improved diversification and earnings capacity since 2018 together with very strong credit metrics,” Moody’s said.
MOL’s oil and gas production has stabilized around 90,0000-100,000 barrels of oil equivalent per day until 2027 with the development of new reserves in Croatia, Azerbaijan and Kazakhstan, while it finalized the construction of a 205,000-tonne per year polyol facility in 2023 and will complete an upgrade of a refinery in Rijeka owned by Croatian unit INA in 2024, Moody’s noted.
MOL has also expanded its marketing and service network through acquisitions to around 2,400 petrol stations in 2023 from about 1,992 in 2022 while boosting per-station profitability, it added.