Hungarian MOL's Q4 profit jumps, helped by one-offs

By Krisztina Than

BUDAPEST, Feb 15 (Reuters) - Hungarian oil and gas firm MOL MOLB.BU reported a surge in its fourth-quarter net and operating profits on Friday due to improved upstream and downstream performance, big one-off gains and a low base.

MOL, which is the target of an unsolicited takeover approach by Austria's OMV (OMVV.VI: Quote, Profile, Research, Stock Buzz), said its reported net income was 94.3 billion forints ($527.2 million) for the quarter -- 317 percent higher than a revised 22.6 billion in the same quarter of 2006.

It came in well above analysts' forecast for 65.11 billion forints in a Reuters poll earlier this week.

MOL said these numbers included one-off gains from the sale of its gas subsidiaries and on the acquisition of TVK shares and also the benefit of MOL's tax holiday in 2006, as well as a big non-cash gain on the fair valuation of an earlier conversion option with Magnolia Finance Ltd.

For the full-year, MOL reported a net income of 254.1 billion forints, down 23 percent from 2006.

Net income stripped of special items with the exception of the Magnolia impact was 73.5 billion forints in the fourth quarter, up 293 percent from 18.7 billion a year ago.

Operating profit also jumped in the fourth quarter.

"In Q4 2007 ... operating profit excluding special items increased by 68 percent in USD-terms as strong increase in downstream and petrochemical sales volumes, strong crude prices as well as improving crack spreads compensated for lower hydrocarbon production and lower integrated petrochemical margins," MOL said in a statement.