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MOL pays first dividend since 2008

MOL proposes to pay a dividend the first time since 2008.

The board of directors of Hungarian oil and gas company MOL Nyrt proposed paying HUF 45 billion dividend from last year's profits, the company said Wednesday in a stock exchange filing. The decision on the proposal was made on March 22. 

The amount represents more than 2% dividend yield, the company said.

The AGM on April 26 will decide on paying the dividend. 

The dividend works out to HUF 460 per share, Erste Befektetési chief analyst József Miró told MTI earlier. He added that analysts had expected the company to pay a HUF 706-per-share dividend. Last time the company paid an HUF 85 billion dividend -- HUF 780 per share -- on the 2007 profit of HUF 217 billion.

Net profit of the Group reached HUF 154 billion last year after HUF 104 billion in 2010. Downstream operations realized an operating loss of HUF 0.5 billion in 2011, without special items, while upstream increased its operating profit, excluding special items, by 16% to HUF 330 billion.

The board also proposes that the AGM elect Zarko Primorac to be member of the Supervisory Board of the company, and -- instead of Dr Sándor Lámfalussy -- elect Primorac as an independent member of the Supervisory Board to be alternate member of the Audit Committee. 

Dr Lámfalussy has indicated in writing that with regards to his age, he resigns from his position as member of the Supervisory Board and the Audit Committee effective as from the closing of the AGM.

A former Minister of Finance of Bosnia and Herzegovina, 74-years-old Primorac was a senior adviser and then a member of the Management Board of PricewaterhouseCoopers, Zagreb office from 1997 to 2002, then special adviser of Erste Bank, Zagreb until 2003. From 2002 Primorac has also been Regional, honorary Chairman of Deloitte, Zagreb and as of this year he is a member of the Supervisory Board of Croatian power company Hrvatska elektroprivreda. Primorac is also a Member of the Council for International Relations of the President of the Republic of Croatia and member of the Presidency of the Croatian Association of Economists.