In H1, Fondul recorded a net unrealized loss from equity investments at fair value through P&L of RON 1.9bn. Meanwhile net loss amounted to RON -848.6m.
In the first half of the year, Fondul Proprietatea recorded the net unrealized loss from equity investments at fair value through profit or loss of RON 1.9bn compared to a gain of RON 1bn in H1 2020.
Such a result was mainly generated by OMV Petrom (RON 696.6m, decrease in share price of 27.5%) and the RON 1.3bn decrease in value of unlisted holdings following the valuation update in June. The following unlisted companies recorded the highest decrease in NAV: Hidroelectrica (RON -179m), CN Aeroporturi Bucuresti (RON -287.1m), EDistributie Banat (RON 266.7m), E-Distributie Muntenia (RON -215.8m) and E-Distributie Dobrogea (RON -156.8m).
During the first half of 2020, 10 companies in the Fund’s portfolio declared dividends for the FY 2019 and FY 2018. In addition, 4 companies declared special dividends. The total amount of gross dividend income amounted to RON 1.2bn. The main dividend payers were E-Distributie companies (RON 522.9m), Hidroelectrica SA, (RON 399.5m), OMV Petrom SA (RON 175.6m), and Nuclearelectrica SA (RON 34.9m).
As a result, net operating loss amounted to RON -798.9m, compared to a gain of RON 1.7bn in H1 2019. In H1 2020, the company recorded a net loss of RON -848.6m compared to a profit of RON 1.7bn in H1 2019.
During Q2 of 2020, the NAV per share had an overall increase of 7.6% compared to the end of Q1 2020, mainly due to the dividends recorded from portfolio companies during this period (RON 417.6m), the valuation update of the unlisted holdings in the portfolio (impact on the Fund’s NAV of RON 217.5m compared to 31 March 2020) and the positive share price evolution of the Fund’s listed holdings, principally OMV Petrom SA (impact on the Fund’s NAV of RON 192.6m compared to 31 March 2020) as well as the eleventh buyback programme carried out by the Fund during this period. However, these were partially offset by the dividend distribution of RON 0.0642 per share approved by shareholders during the GSM held at the end of April (total impact in Fund’s NAV of RON 418.0 million). To read more about Fondul’s Q1 NAV click here
