Hungary’s MOL Group released an update of its 2030 strategy, originally launched in 2016, that shows the company’s plans to transition away from a fossil motor fuel-based demand in its downstream and retail segments. The new strategy seeks to accelerate the transformation of the group’s traditional businesses for the low-carbon future, according to a press release.
In retail, MOL will invest in the further development of food and convenience offerings and will continue the standardization and digitalization processes within the network. The focus will then increasingly shift towards sales channel diversification, expanding the alternative fuels portfolio and complex mobility platforms and services. The segment will materially increase its contribution to the group by reaching over $700mn annual EBITDA by 2025, and a cumulative simplified free cash flow of over $2bn in 2021-25, according to MOL.
In downstream, MOL will continue and accelerate its fuel-to-chemicals transformation, reducing motor fuel yield in the refining system. The total downstream transformation capex may reach $4.5bn in the next ten years.
Other relevant investments disclosed in ‘SHAPE TOMORROW”: MOL Group 2030+’ strategy include $1bn in the next five years on new, low-carbon and sustainable businesses to become a key player in Central and Eastern Europe circular economy, including waste integration and utilization, carbon capture, utilization and storage, advanced biofuel production and hydrogen-related opportunities.
MOL Group is an integrated, international oil and gas company headquartered in Budapest, Hungary. It owns a network of almost 2,000 service stations across 10 countries in Central & South Eastern Europe.