MOL Group reported a significant increase in hydrocarbon production and a substantial rise in net income for the fourth quarter of 2025, despite operational challenges from a prolonged disruption to Russian oil supplies.

Production and Financial Performance

Oil and gas output rose to 99,400 barrels of oil equivalent per day (boepd) in Q4 2025, up from 92,300 boepd the previous quarter. This surge lifted the full-year average to 94,700 boepd, exceeding the company's guidance of 92,000-94,000 boepd. The increase was driven by higher output in Central and Eastern Europe and in Iraqi Kurdistan. For 2026, production is forecast to grow further to between 95,000 and 97,000 boepd, supported by measures to counter natural decline in European fields and organic expansion in Iraq and Kazakhstan.

Operating income for Q4 2025 was $6.4 billion, down from $7.1 billion a year earlier. However, net income attributable to shareholders showed a dramatic improvement, reaching over $293 million compared to a net loss of $26 million in Q4 2024. The company attributed its results to lower energy prices and the Russian oil supply disruptions. Key price benchmarks fell, with Brent crude averaging below $64 per barrel and gas at €30 per MWh in Q4 2025, down from nearly $75 per barrel and €43 per MWh in the same period of 2024.

Supply Disruption and Mitigation Efforts

The financial report was overshadowed by a major disruption to Russian oil deliveries via the Druzhba pipeline, which have been completely halted since January 27 following a Russian aerial attack on a segment in Ukraine. This has affected MOL's refineries in Hungary and Slovakia. Both landlocked countries are urgently seeking alternative supplies via the Adria pipeline in Croatia. In response, the Hungarian government approved the emergency release of 250,000 tonnes of oil from strategic reserves to MOL to ensure refinery operations and domestic fuel supply, with Slovakia authorizing a similar release.

Market and Regulatory Context

MOL's share price on the Budapest Stock Exchange was slightly lower following the earnings announcement, having lost about 13% of its value since a five-year high in early February due to investor concerns over the supply disruption. The European Commission, which granted Hungary and Slovakia an open-ended exemption from the EU ban on Russian oil via Druzhba, has called a meeting for February 25 to discuss alternative supplies. An EC spokesperson stated there is no short-term supply risk due to emergency stocks and that the Commission is not pressuring Ukraine to rush repairs to the Druzhba pipeline. MOL is working to increase throughput via the Adria pipeline but has warned that relying on it alone would reduce refinery utilization below 80% and increase technical risks and logistics costs.