MVM to pay massive interim dividend to state

The brief statement notes that based on the interim consolidated financial statements of MVM Group prepared in accordance with EU IFRS accounting rules, published on 16 September 2024, the Group achieved a net profit of HUF 222.047 billion in the first half of the current year.

This year's dividend prepayment is not surprising, neither in the light of the HUF 308 billion dividend prepayment at the end of November last year, nor in the light of this year's first half after-tax profit. On the latter, we have already suggested that it could happen again towards the end of the year, depending on the current budget situation.

László Fazekas, MVM's Deputy Chief Financial Officer, gave an exclusive interview to Portfolio at the beginning of October about the first half-year results. Among other things, he said that the group is heading for an all-time high annual profit this year.

Asked about the payment of a interim dividend, he pointed out that this is an ownership decision and if such a decision is taken, MVM will of course comply with it. However, he also noted that "it is also in the clear interest of the owner that MVM is able to carry out the investments necessary to maintain secure energy supply in Hungary and the planned developments. The owner is also committed to maintaining MVM's stable financial position and investment grade credit rating."

The HUF 225 billion profit in the first half of the year and the HUF 126 billion interim dividend they have just decided on suggest that the owner has indeed weighed up the factors mentioned by Fazekas and made the decision in light of them.

Cover photo: MVM, Portfolio