As FP published their 9M results together with their NAV as of 31 October, we are bringing you key takes from the reports.
As Fondul Proprietatea published their 9M 2019 results, we are bringing you key takes from the report. According to it, the net gain from equity investments at fair value through profit or loss of amounted to RON 1.27bn, showing a strong increase of 198% YoY. Such a high rise was mainly generated by OMV Petrom, as a result of the positive share price evolution for this company (RON 699.4m, share price increase by 41.3%) and Hidroelectrica as a result of the valuation update of the Fund’s holding in this company (total impact RON 259.0m).
Gross dividend income amounted to RON 723.38m, showing a solid increase of 25.8% YoY. The gross dividend income included the dividend income earned from the Fund’s portfolio companies, mainly Hidroelectrica (RON 358.7m). It is noteworthy that gross dividend income from Hidroelectrica observed an increase of 58.6% YoY. Next come, OMV Petrom (RON 152.9m), CN Aeroporturi Bucuresti (RON 73.0m), Societatea Nationala (RON 37.4m), Alro (RON 33.3m), Nuclearelectrica (RON 26.7m), BRD Group (RON 18.3m) and Engie Romania (RON 16.4m).
Interest income amounted to RON 7.97m (+16.9% YoY), which arose from deposits held with banks and from short-term government securities.
As a result of all of the above mentioned, net operating income doubled, amounting to RON 2bn. Operating expenses witnessed an increase of 1.4% YoY, amounting to RON 56m.
In the first 9M of 2019, the company recorded a net profit of RON 1.94bn, representing a strong increase of 104% YoY.
NAV as of 31 October 2019
According to the latest NAV report, Fondul reported a total NAV of RON 10.71bn (EUR 2.25bn), which translates into a NAV per share of RON 1.5579. When comparing it to the same period last year, their NAV increased by 7%, while NAV per share increased by 13.3%. Meanwhile, when comparing MoM, Fondul’s NAV and NAV per share remained relatively flat.
Next, when observing the portfolio structure, it remains traditionally oriented towards the power, oil and gas sectors, whereby the two largest holdings, Hidroelectrica and OMV Petrom account for 63.8% of the total NAV.
Furthermore, when compared to the same period last year, the Fund decreased their listed equities (-1.35 p.p.), while their net cash & receivables also decreased by 0.52 p.p. Meanwhile, Fondul’s exposure to unlisted equities increased by 1.87 p.p. accounting for 70.2% of the portfolio.
Turning our attention towards the share’s price performance, as of 15 November, the share price amounted to RON 1.19, marking a 25.4% increase YoY. The discount to NAV per share decreased by 7.3 p.p. YoY and currently stands at 23.9%.
