The board of Hungarian oil and gas company MOL will decide on a proposal for a dividend on 2010 profits in March, CEO György Mosonyi said, after the company published its Q4 report.
Speaking about profits in 2011, Mosonyi said shareholders "will not be disappointed" without revealing any further details.
MOL has not paid a dividend for two years, but Mosonyi told shareholders last spring that the company was committed to returning to its usual practice of paying out 40% of profit - adjusted for one-off items - to shareholders as dividend.
CFO József Molnár said MOL will make HUF 370 billion of capital expenditures in 2011, up from HUF 332 billion in 2010.
MOL's business plan for 2011 assumes a Brent price of $80 +/- $10 per barrel and a $1.75 Ural/Brent spread. It assumes a 280 forint/euro exchange rate and a 209 forint/dollar rate.
MOL expects to raise production to 150,000 barrels of oil equivalent (BOE) in 2011 from 143,000 in 2010 as output of Croatian unit INA's fields in Syria grows. INA contributed 82,000 BOE to MOL group's production in 2010.
Mosonyi noted that MOL paid HUF 89 billion in mining royalty in 2010, HUF 26 billion in crisis tax and HUF 7 billion-8 billion in Robin Hood tax. The company also had to pay HUF 35 billion in extra mining royalty to the state under a decision by the European Commission. MOL is appealing part of that payment in the European Court, but the payment of the entire amount is not postponed by the appeal, he added.
The company had about a 5% return on equity in 2010, Mosonyi said. (MTI – Econews)