Bloomberg News

Mol’s Slovnaft Unit to Complete Petrochemical Plant by 2015

December 01, 2011

(Adds Mol share price in fifth paragraph.)

Dec. 1 (Bloomberg) -- Slovnaft AS, a Slovak refiner controlled by Hungary’s Mol Nyrt., will complete a 300 million- euro ($405 million) petrochemical plant by 2015, boosting its output of polyethylene.

The plant will enable the sole Slovak refiner to raise the annual production of polyethylene to 220,000 tons from 178,000 tons now, Chief Executive Officer Oszkar Vilagi said at a press conference in Bratislava, Slovakia today.

The project is part of the company’s push to increase output of non-fuel products to lessen its dependency on economic swings. The new plant will replace the old technology and will produce 30 kinds of the polymere, enabling the company to lure new clients.

The refiner, in which Mol holds more than 98 percent, posted a 30 million-euro loss in the third quarter, compared with an after-tax profit of 38 million euros a year earlier, as higher oil prices and lower petrochemical margins eroded gains from an increase in sales. The nine-month after-tax profit declined to 25 million euros from 26 million euros in the same period 2011.

Mol fell 255 forint, or 1.4 percent, to 18,465 forint in Budapest, after gaining 5.2 percent yesterday.

--Editor: James M. Gomez

To contact the reporter on this story: Radoslav Tomek in Bratislava at rtomek@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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