Ferenc Horváth Fascinati Ng Facts and fi Gures About DS 6 Ferenc Horváth, EVP – Group Downstream, Explains 5 WELCOME the New Directi on of DS Forcefully
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July 2014 MGP Third Issue Think. Create. Move. Ferenc Horváth “The key thing is to acquire long- term, regular, loyal and sati sfi ed customers, while also operati ng all our assets in the most effi cient and competi ti ve manner possible.” NEW DOWNSTREAM PROGRAM Focus on improving efficiency 2012–2014 MOL GROUP RETAIL STRATEGY We create pride and a strong feeling of ownership among the people in our organisation GROUP REGULATORY & PUBLIC AFFAIRS Working with governments and other key stakeholders this issue: downstream contents MOL GROUP ISSUE 03 July 2014 DOWNSTREAM› Interview 4 MOL GROUP DOWNSTREAM IN NUMBERS Ferenc Horváth Fascinati ng facts and fi gures about DS 6 Ferenc Horváth, EVP – Group Downstream, explains 5 WELCOME the new directi on of DS forcefully. To achieve our ambiti ous Zsolt Hernádi, C-CEO and Ferenc Horváth, EVP – REFINING goals just saying “adapt to change” is not enough… Group Downstream PETROCHEMICALS 6 FERENC HORVÁTH INTERVIEW LOGISTICS Change is the fuel of the future WHOLESALE 9 NEW DOWNSTREAM PROGRAM Focus on improving effi ciency 2012–2014 RETAIL 10 DOWNSTREAMING FUEL BUSINESS Product lines and supply process from the NON-FUEL BUSINESS refi nery to the various product markets 12 INSIDER Introducti on to the internati onal team of DS managers 16 GROUP NEWS Infographics Projects and developments worldwide Downstreaming 10 From refi nery to service stati on 18 E&P 200KBDOE PROGRAM A new beginning 19 OUTLOOK E&P world 20 PRODUCT KNOWLEDGE CENTRE Outlook of recently developed DS products 21 IN FOCUS MOL Group Retail strategy 22 IN FOCUS HR in Retail Network 24 FLAGSHIP NEWS SD & HSE Overview of local news and improvements Changing HSE 26 GROUP REGULATORY & PUBLIC AFFAIRS 28 Working with governments and other behaviour to create value key stakeholders Interview with József Molnár, Group CEO and Donna Darzentas, SVP – Group SD & HSE 28 HEALTH, SAFETY, ENVIRONMENT Everyone is responsible for HSE 30 CORPORATE RESPONSIBILITY & SPONSORSHIP What we are proud of 32 LEAN Implemented ideas 33 READERS’ FEEDBACK Your voice matt ers 34 BARREL PER DAY Guide to today’s trends and future developments MOL Group Panorama – The Internal Magazine of MOL Group Published quarterly . Founder of Magazine: MOL Group Corporate Communicati ons . Executi ve Publisher: Dominic Köfner, Vice President - MOL Group Corporate Communicati ons. Magazine Manager: Aranka Kiss . Managing Editors: Anna Hőgyész, Árpád Lipcsei, Virág Váraljai . Contributors: MOL Group HQ Editorial Board, Flagship and Operati ng Company Representati ves . Publisher: HG Media – 1016 Budapest, Lisznyai u. 38. Design: HG Media, Tamás Tárczy . Photos: Fotógyár English Editor: Jeremy Lovitt -Danks July 2014 3 MOL Group Downstream in numbers welcome Region- wide DEAR MOL GROUP LOGISTICS, serve COLLEAGUES, wholesale the and retailNETWORK market AND MGP READERS, producti on F U E L units This editi on focuses on MOL Group Downstream, one of the main pillars of MOL Group operati ons. with total capacity of 20.9 When the very successful fi ve years known as mtpa refi ning and 2.1 mtpa the “DS golden age” came to an end in 2009, petrochemicals, annually things changed, drasti cally, for the worse. The European downstream business came under severe pressure and is sti ll suff ering from adverse 6 global trends and an unhelpful governmental and regulatory environment. The key themes for DS today, therefore, are CHANGE – PROACTIVITY – LONG-TERM SUSTAINABILITY. A totally new approach is essenti al for the future – we need to keep shaking ourselves up, dusti ng ourselves down and embracing new ways of thinking. We fi rmly believe that MOL Group has the demonstrable 1,720 ability to concentrate on the customer in parallel with conti nuous effi ciency improvements in all MOL GROUP areas of Downstream operati ons. One of the main steps taken in this latt er 24% SERVICE STATIONS area was the New Downstream Program for 2012-2014. The program was proacti ve and motor fuel market ACROSS put in place at the right ti me. And now, a short list of our recent achievements – the sale- share in the CEE 11 COUNTRIES purchase agreement with Eni that increases our retail market presence in the Czech Republic, Slovakia and Romania, and our new petrochemicals operati ons, the Slovnaft LDPE-4 unit, the TVK butadiene extracti on unit and syntheti c rubber plant. MGP appears four ti mes a year and, since Downstream operati ons cover a huge area, the next editi on in September will be dedicated to the Petrochemicals business. We are very proud of the fact that our magazine 750,000fuel transacti ons per day has become a useful marketi ng tool. For example, the infographic “Way of Oil” has been petrochemicals plants mtpa refi ned products and translated into several languages and used on the spot locally while the magazine is also read by mtpa petrochemicals SALES 1.3 external stakeholders in every country in which to our wholesale customers MOL Group operates. Please keep on sending us your suggesti ons to MGP infoline: OF18 worldwide annually [email protected] 2 Enjoy a good read! New Downstream Program: effi ciency improvement USD100m+ already Ferenc Horváth Zsolt Hernádi USD400m delivered, benefi t sti ll to come in 2014 EVP – Group Downstream Chairman & CEO 4 MOL GROUP Panorama July 2014 5 interview interview BUSINESS CARD Executi ve Vice President – Change is the Group Downstream since 1 May, 2011. He joined MOL Plc in 1998 as Director - LPG fuel of the future Business Unit and worked from January 2001 onwards as Sales Director, responsible for the Ferenc Horváth, Executi ve Vice President sales of MOL’s enti re product range. Commercial Director – Group Downstream, explains the new between 2002 and 2003, his directi on of DS forcefully: “we all need a acti viti es broadened to embrace the purchase of the crude oil diff erent global, personal outlook to achieve and raw materials necessary for refi ning. He is a member of our ambiti ous goals. Just saying, adapt to the TVK and Slovnaft Boards change, is not enough. A more proacti ve of Directors, Chairman of the IES Board of Directors and has approach is necessary.” been a member of the INA Supervisory Board since 2012. the FMCG (Fast-Moving Consumer Goods) business. Lars Höglund brought a totally ft er a 16-year career at MOL where we were performing well, albeit new customer-focused approach to the with the fi rst 10 years co- under diff erent circumstances; and identi fy company with the aim of achieving a real inciding with the golden age key acti ons to achieve maximum results step change to att ract new customers. of refi ning, how did you react under these bleak new conditi ons”. to a business environment that changed so What does this mean from the dramati cally for the worse aft er 2008? Well, you’ve been prett y successful so far. The key thing is to acquire long-term, management approach view point? When I joined MOL with a group of other Aft er all, the New Downstream Program regular, loyal and satisfied customers, Well, as I see it, it will be more pro-acti ve young people, rather like the ‘Young has delivered its fi rst very positi ve fi nancial than reacti ve thanks to the new manage- Turks’, we tried to change the Company, results. But you must have encountered while also operating all our assets in ment. There is more proacti vity in our parti cularly its atti tudes, mentality and some serious diffi culti es along the way. the most efficient and competitive recent projects, like Mantova, the Syntheti c culture. If I look back today, all my 16 years Identi fying the acti ons for improvement was rubber and LDPE-4 projects, and especially here have enjoyed conti nuous change not the most diffi cult part of the process, by manner possible. the deal with Eni. It is essenti ally diff erent and, of course, when I look around now, I a long way. It was the need for us to accept from past ones because Eni was an acquisi- realise I’m one of the ‘old brigade’. the fact that we all needed to look at every- ti on we achieved not in an invitati on-based Today, however, change has become very thing from a totally new perspecti ve. Firstly, naturally required new processes, so new public tender process. It was defi nitely the diff erent and much more dramati c. During I oft en used to hear my colleagues declaring teams were established and operati ons result of a deliberate, well-planned scheme. the so-called golden age, change primarily that we’d ‘always done things this way’ and transformed. Secondly, many new col- meant trying to adapt to quickly changing that ‘results were excellent’, that ‘between leagues were recruited with internati onal And what is the role and circumstances, very favourable circum- 2003-2008, MOL Downstream was one of experience. It was not just because they importance of the Eni project? stances back then. All we were doing was the most profi table businesses around’ and were from abroad that matt ered. What re- I don’t want to exaggerate, but this move is to strive for intensive expansion, removing that ‘everybody was so pleased with our ally matt ered was that we recruited experts of outstanding importance from a number all obstacles from our path. performance’. Then there was a sudden who had been through other, and diff erent of diff erent aspects. This is one of our largest But then crude oil prices rose sharply, change only 1.5-2 years later and we saw our challenges and could bring to MOL many acquisiti ons over the past few years.