DOCUMENTS FOR THE ANNUAL GENERAL MEETING

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