Strong performance three years in a row – AGM approves decrease of sharecapital

On 23 April, MOL plc held its Annual General Meeting in Budapest. The shareholder assembly positively acknowledged the company’s performance and results for 2007 as MOL continued to deliver on its long-term independent strategy, achieving a number of significant steps regarding organic growth, acquisitions and strategic partnerships.

The AGM acknowledged that MOL has produced outstanding results for three successive years, and MOL’s standalone strategy was evaluated as successful by shareholders. In fiscal year 2007, operating profit excluding special items improved by 5% in USD-terms to USD 1,629 mn, according to IFRS. EBITDA was up to a record USD 2.4bn excluding special items. Net profit excluding special items improved by 13% in USD-terms, y-o-y to USD 1,144.7mn. Net income excluding the non-realized fair valuation difference of the conversion option of Magnolia and other special items was USD 1,215.2mn (up 12% year-on-year). The devaluation of the USD impacted the result in Hungarian forint terms.

MOL’s outstanding downstream and upstream efficiency contributed to maintaining a stable growth platform for the company even in a fast changing industry environment. In addition to significant organic growth, the company has accelerated its acquisition and partnership program. MOL completed several acquisition deals including IES, a further shareholding in TVK, Tifon and the Matjuskhinskaja field. Since last year MOL has concluded two major strategic cooperation deals: entering the electricity market, of high growth potential alongside one of Europe’s biggest electricity companies, CEZ; and establishing a long term cooperation with OOC, Oman Oil Company. In addition, MOL expanded its international exploration portfolio with exploration blocks in Cameroon and Kurdistan. Furthermore, MOL signed Memorandum of Understandings with the Libyan Investment Authority and India’s state oil company.

At the AGM, the 2007 business year was closed with the approval of the audited financial statements. The AGM decided to grant a dividend of HUF 85bn representing a 40% pay-out ratio. Shareholders agreed to cancel 5% of treasury shares to be arranged by the Board of Directors in due course and decrease the company’s share capital accordingly.

 Shareholders re-authorized the Board’s right to acquire treasury shares up to 25% of the issued share capital. The AGM amended several elements of MOL’s Articles of Association in order to comply with current legislation and to facilitate greater flexibility for the management of the company going forward.

Mr Zsolt Hernádi, Mr György Mosonyi, Mr Iain Paterson and Mr. Gábor Horváth were re-elected to the Board of Directors by the AGM.Mulham Basheer Abdullah Al Jarf, was newly elected to the Board, Michel–Marc Delcommune resigned as a member of the Board of Directors.Mr. Gyula Dávid was elected as a member of the Board  and Mr. István Gergely was elected as a member of the Supervisory Board, both are appointees of the Hungarian Energy Office, and will be non-voting members,  in accordance with the Gas Supply Act.

Following a resolution requested by a shareholder, the AGM approved the appointment of an auditor to provide an opinion on MOL’s specific transactions and accounts for 2007. After the meeting MOL’s Chairman, Mr Zsolt Hernádi, said, “The support from our shareholders today is a clear confirmation of their confidence in the company, the management and MOL’s strategy and they trust that the successes achieved during the past  three years will also continue in the future”.