DOCUMENTS FOR THE ANNUAL GENERAL MEETING

MOL Plc. Annual General Meeting 2013 Documents
More emphasis on Retail
and Logistics due to a
changed market situation
CAPEX should be financed
from operating cash-flow in a
flexible way; USD 1.5 bn in
2013
M&A: Active portfolio
management has priority in
Upstream
Another key area for focus is how to cope with the difficult situation
of shrinking demand. In such a difficult business environment, the
importance of the captive market concept has increased all the
more. This is especially true in the gasoline market. Here we aim to
expand our retail network in the region further and rationalise and
then increase our Retail portfolio. The focus is on areas which
provide captive markets, good profitability and growth
opportunities. Finally, we are committed to continuing the refinery
modernisation program in Rijeka, Croatia. Final investment decision
is expected after the basic design of the unit is completed.
In principle, all our organic CAPEX spending should be fully covered
by operating cash flow. While in 2013 our organic CAPEX program
requires USD 1.5bn in the mid-term, we are maintaining our up to
USD 2 bn per annum guideline. More than 50% is allocated to
Upstream, 28% to Downstream, 3% to Gas and the remainder serves
as a contingency fund. On the other hand, MOL continuously
monitors both growth opportunities and the external environment
so as to be able to react in a flexible way in CAPEX spending.
As far as our M&A activities are concerned, we are open to adding
new elements to our Upstream portfolio just as we did in Russia,
Oman, Kazakhstan and Egypt in 2012. We prefer entering projects in
their early, exploration phases, where most of the value is created. It
should be noted, however, that in all cases, balance between cash-in
and cash-out cycles should be approximately balanced so as to be
active in farm-outs as well to optimise our financing and risk profile.
In Downstream, in line with the above-mentioned captive market
strategy, we are further extending our Retail network.
UPSTREAM OVERVIEW
Highlights
EBITDA, excluding special items, reached HUF 417bn, below 2011
results due to lack of a Syrian contribution, worth HUF 75bn in
2011.
The Group’s total SPE 2P reserves stood at 647 MMboe as of 31 st
December 2012.
Current best estimates of unrisked recoverable resource
potential is 1.6 Bboe (on a working interest basis) from 11
countries, which will be derisked in the coming years (725
MMboe in the Kurdistan Region of Iraq, 135 MMboe in
Kazakhstan).
In 2013, we are expecting around 110 mboepd hydrocarbon
production, without any Syrian contribution.
As a result of successful Kurdistani activities, the first barrels from
the region will contribute to production in 2013.
9/94