IC Market Espresso 1 Feb 2019

InterCapital Reignites Market Making in Slovenia After 10 Years
Krka and Triglav signed market making mandates with InterCapital, a move targeted at further easing investments into the shares by reducing spreads and price volatility. We are extremely proud of our first cross-border mandate and honoured to be the first broker to reintroduce market making to the Ljubljana Stock Exchange after 10 years.

Being a market maker means that InterCapital will continuously put both bid (buy) and ask (sell) orders on Krka and Triglav shares at a pre-defined spread. The idea is to enable investors to buy or sell the shares (up to a certain size) at any time within a reasonable volatility range.

Krka is the largest listed company in Ljubljana, and generates most of the exchange’s turnover. Triglav comes second in terms of market capitalization, taking into account that most of the recently IPOed NLB Bank is traded in London in the form of GDRs. Both Krka and Triglav have been shining examples of corporate governance and orientation towards investors. The companies are regularly present at investors’ conferences (in addition to organizing their own), and Krka has recently attracted more attention by boosting the share buyback programme. Adding a market maker is a further step to ease investments into their shares and provide more liquidity.

InterCapital is already an established market maker in Croatia, covering 8 blue-chip companies, all part of the CROBEX index. According to our experience, the service accounts for a significant portion of the shares’ total turnover. Adding Krka and Triglav to our market making portfolio marks our first cross-border expansion. We are proud of having earned the companies’ trust and will do our best to continue providing the best service possible. We remain dedicated to making investments into the region more attractive by supporting transparency and liquidity, and we thank our partners for supporting us in achieving this goal.

Hoteli Makarska Publishes Preliminary 2018 Financial Results
According to the preliminary results, sales revenues increased by 6.6% YoY, EBITDA decreased by 63% YoY and net income decreased by 191% YoY. Hoteli Makarska was consolidated by Valamar Riviera in 2018.

Hoteli Makarska published their preliminary 2018 financial results.

According to it, sales revenues in 2018 amounted to HRK 79.6m, which is a 6.6% increase YoY. The increase in revenues could mostly be attributed to a rise in average accommodation prices in combination with redistribution of sales channels.

On the other hand, operating expenses increased by HRK 27.9m, which is an increase of 43.9% YoY. The increase occurred as a consequence of changing accounting policies. To be specific, amortization of real-estate was increased from 2% to 4%, which increased operating expenses by HRK 7.5m.

Besides that, provisions increased by HRK 14m as a result of a court case with the city of Makarska, regarding the land of touristic resort Rivijera.

As a result of the increase of above-mentioned expenses, the company recorded an EBITDA of HRK 6.7m which is a decrease of 63% YoY.

Meanwhile, Hoteli Makarska recorded a net loss of HRK -9.2m, which is a 191% decrease YoY.

Romanian Government Approves Decision on Extending its Agreement with OMV Petrom and ExxonMobil
The approval is extended for 15 years, until 2045.

According to the media, the Romanian government approved the decision on extending its agreement with OMV Petrom and ExxonMobil on the Neptun Deep natural gas perimeter in the Black Sea. The decision will be valid for 15 years, until 2045.

The concession agreement for the exploration, development and exploitation of the XIX Neptun perimeter was initially approved in 2000, through a government decision, being valid until 2030.

Luka Koper Signs Loan Contract Worth 43.7m
The company has signed contract for long-term, 10-year loans amounting to EUR 43.7m in order to refinance a part of their existing loans.

Luka Koper published a document stating that they have completed the process of refinancing part of the received long-term loans. The company has signed contract for long-term, 10-year loans amounting to EUR 43.7m. Half of the loan was given by Banko Intesa Sanpaolo, while the other half was provided by SID.

The company states that Banks granted loans under the same conditions, on an unsecured basis, and the contracts contain financial commitments that do not deviate significantly from the financial commitments of the company’s loans already granted.

By refinancing a part of the loans, a part of the company’s loans extends the maturity of the company’s sources of financing and at the same time replaces a part of the sources of financing bearing a variable interest rate with those bearing a fixed interest rate, thus reducing the cost of financing.  

Telekom Slovenije Concludes the sale of 100% Stake in Blicnet
The company stated that the purchase price significantly exceeds the book value of the investment. Note that Blicnet’s 2017 book value amounted to EUR 16m (according to TLSG’s Annual Report).

Telekom Slovenije published a document stating that they have completed the procedure for the sale of a 100% stake in Blicnet, a telecommunication company in Bosnia and Herzegovina.  For the moment the final purchase price is unknown, but the company will announce the total value of the purchase fee after determining the adjustment figures.

However, the company stated that the purchase price significantly exceeds the book value of the investment. Looking at Telekom Slovenije’s 2017 Annual Report, we see they booked the investment in Blicnet at EUR 16m.