DOCUMENTS FOR THE ANNUAL GENERAL MEETING
DOCUMENTS FOR THE ANNUAL GENERAL MEETING
DOCUMENTS FOR THE ANNUAL GENERAL MEETING
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MOL Plc. Annual General Meeting 2013 Documents<br />
of the Sisak and Rijeka refinery and HUF 6.6bn relating to the<br />
unsuccessful Bijell-3 well in Kurdistan. A further HUF 4.3bn<br />
impairment was recorded with respect to INA’s Ferdinandovac field.<br />
An additional expense of HUF 10.1bn reflects the penalty payment<br />
and provision at the Group’s Angolan operations, imposed by the<br />
local tax authority. The Group also recorded a provision in the<br />
amount of HUF 7.7bn as a conservative estimate for contract<br />
termination expenses with respect to the Moghan-2 block in Iran.<br />
The effect of these non-recurring expenses was partly offset by a<br />
gain on the year-end revision of the Hungarian field abandonment<br />
provision (HUF 7.4bn).<br />
Financial results<br />
Lower net financial expenses<br />
in 2012<br />
A net financial expense of HUF 47.1bn was recorded in 2012,<br />
compared with HUF 54.9bn in 2011. Interest payable was HUF<br />
46.2bn in 2012 versus HUF 41.2bn in 2011, mainly reflecting coupons<br />
paid on bonds, while interest received amounted to HUF 6.8bn in<br />
2012 against HUF 9.4bn in 2011. In 2012, a foreign exchange loss of<br />
HUF 1.9bn vs. a HUF 55.5bn gain in 2011, was booked on<br />
borrowings, since foreign exchange gains of HUF 43.4bn on<br />
borrowings designated as net investment hedging instruments were<br />
recognized directly in Other comprehensive income. A fair valuation<br />
gain on the conversion option embedded in the capital security<br />
issued by Magnolia Finance Ltd. was HUF 11.8bn versus the<br />
unrealized gain of HUF 10.5bn in FY 2011.<br />
Income from associates<br />
Income from associates amounted to HUF 32.7bn in FY 2012 mainly<br />
as the result of the a contribution from MET Zrt., (HUF 16.7bn) and<br />
MOL’s 10% share from of the operations of the Pearl Petroleum<br />
Company (HUF 12.8bn).<br />
Profit before taxation<br />
As a result of the above-mentioned items, the Group’s profit before<br />
taxation in 2012 was HUF 206.0bn, compared to HUF 218.4bn in<br />
2011.<br />
Taxation<br />
Higher income tax<br />
expenses due to<br />
revaluation of deferred tax<br />
assets<br />
Income tax expenses increased by HUF 16.7bn from the comparative<br />
period to HUF 49.9bn in FY 2012, mainly due to the revaluation of<br />
deferred tax assets and liabilities resulting in higher deferred tax<br />
expenses. Revaluation resulted from the extension and increase of<br />
the Robin Hood tax in Hungary from 8% to 31%. This increase implies<br />
an effective Robin Hood tax rate of around 22% as it is calculated prorata<br />
on revenues from energy supply. In addition, the Slovakian<br />
corporate income tax rate was also increased, from 19% to 23%. Both<br />
taxes are applicable from 1 st January 2013. Deferred tax expenses<br />
29/94