MOL To Lose Big From New Gas Price Rule In Hungary
- 9 Dec 2010 12:00 AM
"MOL is expected to be billions of forints out of pocket as a result of the bill on modifying gas prices that Parliament approved. The proposal would put price-setting authority on gas exploited in Hungary in the hands of National Development Minister Tamas Fellegi.
Erste analyst Jozsef Miro predicts that the new regulation will cut the company's earnings by Ft 10 billion.
Fellegi will be authorised to change the level of strategic reserves managed by MOL, which could also be unfavourable to MOL in financial terms, as it receives storage fees.
The recently approved regulatory changes on price-setting send a very negative message. The oil company has already been hit by the hiking of the Robin Hood tax, as well as the crisis tax. analysts told Napi Gazdasag."
Source: Hungary Around the Clock
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