Shareholders support MOL’s future strategy
Maintaining confidence in growth

On 29th April, 2010, MOL Plc. held its regular Annual General Meeting. The shareholders present accepted the Board of Directors’ report for 2009 and approved the Annual Report of MOL Plc. prepared in accordance with Hungarian Accounting Act and the consolidated financial statements of MOL Group prepared in accordance with IFRS.

The General Assembly listened to the Board’s report for fiscal year 2009, which was considered a “rollercoaster” year, and accepted the report unanimously. The global financial crisis that started in 2008 continued into 2009. At the beginning of the year, economic activity, trade and investments fell back steeply and commodity/asset prices declined at high speed parallel to the high level of volatility. Due to intervention by governments, the slump in the world’s economy turned into growth from the first quarter and this was followed by a new spectacular rise of asset/commodity prices.

Despite these difficulties, 2009 was a milestone year in MOL Exploration & Production Division’s history. As a result of successful exploration activities and the full consolidation of INA into the Company, Group reserves significantly increased from 532.6 million boe in 2008 to 665.1 million boe by the end of 2009. Due to great strides in efficiency and optimization of processes last year, the Exploration & Production Division remained one of the most profitable despite the crisis-stricken market environment.

During 2009, the total Refining & Marketing Division capacity grew significantly as well.   The operational control over INA brought two refineries to MOL’s refinery pool, and so the total capacity increased to 23.5 mtpa.  By optimizing overall supply-chain management, five refineries operating in adjacent markets will lead to further significant growth prospects.
The slump in the world’s economy significantly affected the petrochemicals’ market. MOL took strict measures to keep costs down and manage working capital to mitigate negative trends in the market.

MOL is playing a key role in developing the Hungarian gas transmission system. The connection of the Hungarian-Romanian and Hungarian-Croatian networks will significantly improve the security of regional gas supplies. Our previous investments in the gas storage business will ensure stable euro-denominated cash flow from 2010 into the long-term.
In its Annual Report, Management stressed that MOL had been able to decrease its level of indebtedness in 2009 despite the full consolidation of INA. MOL clearly proved its ability to generate cash-flow because, in spite of the disadvantageous environment, it was able to increase EBITDA and operating cash-flow during the year. MOL is firmly committed to maintaining its strong financial position and intends to finance its investment plan fully from operating cash flow. Therefore, the Board of Directors recommended to the Annual General   Meeting not to pay a dividend on the 2009 results.

The shareholders supported this recommendation by 100%, unanimously supporting the proposals of the Board of Directors.
The assembly also took decisions in the area of personnel – The resignations of MOL Board members László Akar, Miklós Kamarás and Dr Ernő Kemenes were accepted and in their places Zsigmond Járai, Dr László Parragh and Dr Martin Roman were elected. The new members’ mandates last five years. The mandate of István Vásárhelyi, member of the supervisory board had expired. The General Assembly elected István Töröcskei in his place up to 28th April, 2015.
 
After the Annual General Meeting, Zsolt Hernádi, MOL President & CEO affirmed „Our strong financial position provides us with a stable base for growth. After having gained management control of INA in mid-2009 and fully consolidating it, our main task now is to increase the efficiency and profitability of INA businesses to the high level expected from MOL as well as to strengthen INA’s market positions in Croatia, South Eastern Europe and the Adriatic area.”