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MOL board puts profits into retained earnings

The board of Hungarian oil and gas company MOL decided to put all of last yearʼs profit into retained earnings, according to a report by state news wire MTI.

The board was empowered to take the decision, as well as others on the agenda of an annual general meeting, by a government decree allowing the boards of listed companies to approve AGM proposals because of a ban on gatherings due to the coronavirus pandemic.

MOL said earlier in April that its board is proposing placing all of last yearʼs profit into retained earnings, in line with short-term efforts focusing on cash preservation and retaining maximum flexibility.

"Once the situation normalizes and circumstances allow for it, these retained earnings may be used for cash dividend distribution upon the decision of shareholders," MOL said at the time.

MOL had consolidated net profit of HUF 228.4 billion last year, the annual report approved by the board on Thursday shows.

MOL also issued a mandate on Thursday to buy treasury shares up to 25% of share capital over a period of 18 months.

The state of Hungary owns a 15.24% stake in MOL. The foundation of Corvinus University of Budapest holds another 10%.