In Q1, Fondul recorded a net unrealized loss from equity investments at fair value through P&L of RON 2.46bn.

In the first 3 months of 2020, Fondul Proprietatea recorded the net unrealized loss from equity investments at fair value through profit or loss of RON 2.46bn compared to a gain of RON 392.4m in Q1 2020.

Such a result was mainly generated by OMV Petrom (RON 889.2m, decrease in share price of 35.1%), Hidroelectrica (RON 349.7m), CN Aeroporturi Bucuresti (RON 311.2m), EDistributie Banat (RON 252.6m), E-Distributie Muntenia (RON 210.1m) and E-Distributie Dobrogea (RON 159.9m).

Given the current economic context as a result of COVID-19 pandemic, which caused a significant drop of stock exchanges around the world, the Fund has performed an assessment of the related impact on the valuation of unlisted holdings in the portfolio. The total impact was a decrease of the unlisted holdings with 13.1% or RON 1bn on 31 March 2020 NAV compared to 28 February 2020 NAV.

Gross dividend income amounted to 522.9m which is an increase by RON 488.2m YoY. This item in Q12020 included the dividends from E-Distributie Banat SA, E-Distributie Dobrogea and E-Distributie Muntenia as a result of a special dividend distribution from retained earnings approved by the shareholders of the companies.

As a result, net operating loss amounted to RON 1.94.bn, compared to a gain of RON 429.3m in Q1 2019.  In Q1 2020, the company recorded a net loss of RON 1.96m compared to a profit of RON 414.4m in Q1 2019.

During Q1, the NAV per share recorded a decrease of 16.3% YoY, mainly due to the valuation update of the unlisted holdings in the portfolio, as above stated, and the negative share price evolution of the Fund’s listed holdings, mainly OMV Petrom.  This was partially offset by the tender offer within the eleventh buyback program carried out by the Fund during this period. To read more about Fondul’s Q1 NAV click here.

Overview of April NAV

According to the latest NAV report (30 April 2020), Fondul reported a total NAV of RON 9.52bn (EUR 1.97bn), which translates into a NAV per share of RON 1.4561.

When comparing it to the same period last year, their NAV increased by 1.4%, while NAV per share decreased by 7.1%. Meanwhile, when comparing MoM, Fondul’s NAV decreased by 0.7% while NAV per share remained relatively flat. Note that April 2020 Nav is ex-dividend.

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 67.5% of the total NAV.

The funds portfolio currently consists of 74.48% unlisted equities, 24.12% listed equities and 1.4% of net cash & receivables.