MOL petrol stations: Flat income and lower market share despite 11% higher turnover

MOL Romania, the domestic subsidiary of Hungary’s MOL oil group, last year saw its turnover rise by 11% to 592m euros, from 533m euros reported in 2007, but its net income stagnated at some 12m euros. Despite last year’s 2% higher sold volumes, the company’s market share shrank from 12.8% to 10.7% as its product portfolio was reduced following the elimination, starting last April, of leaded petrol, at a much earlier date compared with the other players on the market. “The rising turnover was mainly due to the retail and card units, but also to other business segments: wholesale, petchem (the petrochemical product unit) and lubricants. The improved management of products available in our stores in filling stations had a significant contribution to the turnover increase, with the level of sales being 6% higher, in euros, than in 2007,” say the company’s representatives. Last year, MOL Romania network reached 131 filling stations as nine new stations were opened. “We’ve finalised a thorough analysis of all our filling stations and we’ve decided not to scale back our activities or sell some of them,” stated Zsolt Szalay, MOL Romania chairman. For 2009, MOL Romania representatives have recently stated they expected sold volumes to be lower as a result of the crisis fallout. Also, the company announced the around 20m-euro investment budget for 2008 aimed at network expansion would not allocated again. MOL Romania ranks fourth on the domestic market in terms of sold fuel volumes.