Bloomberg News

Hungary’s Mol Climbs to Six-Week High on Oil Find, Tax Report

October 17, 2011

Oct. 17 (Bloomberg) -- Mol Nyrt. rose to the highest in more than six weeks after an oil discovery in Pakistan and a report Hungary may end extraordinary taxes on industries including energy and telecommunications.

Hungary’s largest refiner strengthened as much as 3.1 percent and finished 1.5 percent up at 17,300 forint by the end of trade in Budapest, the highest closing price since Aug. 31. The benchmark BUX index, in which Mol has a 32 percent weighting, advanced as much as 2.9 percent and was less than 0.1 percent higher at the close.

Hungary may no longer levy extraordinary taxes on the energy, retail and telecommunication industries after 2012 while halving a similar tax on the financial industry, Portfolio.hu reported, citing revenue forecasts included in next year’s budget bill. Mari Gas Co., a Pakistani energy exploration company partially owned by Mol’s local unit, discovered crude oil in the Karak block, Mari Gas said late on Oct. 14.

The portfolio report on taxes has “positive implications for Mol,” Peter Csaszar, an analyst at KBC Securities in Warsaw, wrote in a research report today. The Pakistani oil find is a “positive development,” Csaszar said. “The attractive fiscal terms in Pakistan mean this could be another valuable discovery for Mol.”

Magyar Telekom Nyrt., Hungary’s former phone monopoly controlled by Deutsche Telekom AG, rose 1 percent to 506 forint.

--With assistance from Edith Balazs in Budapest. Editors: Peter Branton, Ana Monteiro

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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