Other operating expenses include penalty payment and non-recurring provision charge of HUF 9.6 bn with respect to a fine imposed by the tax authority of Angola.
In Q1 2012, net financial expense of HUF 4.7 bn was recognized as a result of net interest expenses which was compensated by the gain on the fair valuation of options. In Q1 2012 a re-translation loss on net investments of HUF 37.9 bn was set-off by the same amount of foreign exchange gain on designated bank loans (both accounted for in the translation reserve, within equity).See net financial expenses more detailed in Appendix I.
Fair valuation gain on the conversion option embedded in the capital security issued in the monetization of treasury shares by Magnolia Finance Ltd. was HUF 7.7 bn, while a gain of HUF 2.2 bn has been incurred on the fair valuation of the call option on MOL shares owned by CEZ.
Regarding the income from associates the main contributors were MET (growing international operations) and MOL’s 10% share from the operations of Pearl Petroleum Company (favourable upstream environment).
Total income tax expenses amounted to HUF 9.0 bn in Q1 2012:
- Changes in the calculated corporate income and deferred taxes were results of lower profitability of Hungarian operations.
- The subsequent impact of MOL share transactions and certain options attached to shares held by third parties is treated differently for IFRS and tax purposes and resulted in a HUF 3.2 bn increase in our tax expense.
- Furthermore, MOL Group recognized a HUF 7.0 bn crisis tax which is accounted for Other operating expense (Q1 2011: HUF 6.2 bn).
