In FY 2021, Fondul recorded a net unrealized gain from equity investments at fair value through P&L of RON 4.6bn. Meanwhile, net profit amounted to RON 5bn, compared to net loss of RON 103m. Distribution of an annual gross dividend of RON 0.1250 per share was approved from the 2021 net accounting profit, representing 5.85% DY. June 2nd is set for ex-date.
In FY 2021, Fondul Proprietatea recorded the net unrealized gain from equity investments at fair value through profit or loss of RON 4.6bn. Such a result was mainly generated by OMV Petrom as a result of the positive evolution of this company’s share price during 2021, reporting a share price increase of 37.3% (an increase of RON 537.1m). The positive impact from OMV Petrom was further boosted by the increase in the value of unlisted holdings in the portfolio following the valuation update process, mainly due to Hidroelectrica, which registered an increase in the valuation of RON 3,912m. Regarding the Romanian capital market performance, last year was the best year in history and set a series of new records at the level of several development indicators. In 2021, the Romanian capital market registered a significant increase in the number of investors trading on the BVB, achieving greater investment activity on BVB. Throughout the year, Fund did not invest in treasury bills.
In 2021, 13 companies in the Fund’s portfolio declared dividends for FY 2020. In addition, 4 companies declared special dividends. The total amount of gross dividend income amounted to RON 655.1m. The main dividend payers were Hidroelectrica SA (RON 199.4m), OMW Petrom, (RON 29.3m), and E-Distributie (RON 23.6m).
As a result, net operating income amounted to RON 5.2bn, compared to a loss of RON 10m in 2020. In 2021, the company recorded a net profit of RON 5bn compared to a loss of RON EUR 103m in 2020.
In 2021 Fund’s share price for both shares and GDRs varied between 10% to 20% on all trading days. Furthermore, in 2021 the local currency depreciated by 2.3% compared to EUR.
To emphasize, Fondul held Ordinary and Extraordinary General Meetings on 20th April. The key takeaway was the approval of the decrease of the subscribed and paid-up share capital of Fondul by 194.4m own shares acquired by Fondul during the year. Also, the distribution of an annual gross dividend of RON 0.1250 per share was approved from the 2021 net accounting profit, representing 5.85% DY. June 2nd is set for ex-date.
Dividend per Share (RON) & Dividend Yield (%) (2018 – 2022)
At the share price before the announcement, this would amount to a DY of 2.27%. The ex-date is set for 16 June 2022.
Last Friday, Supervisory and Management Boards of Span have proposed the distribution of 2021 profit. Out of the net profit of HRK 24m achieved in 2021, the Company will pay out app. HRK 9.63m in the form of dividends. This would ammount to a dividend of HRK 5 per share, and at the price before the announcement, a dividend yield of 2.27%.
The ex-date is set for 16 June 2022, while the payment date is set for 1 July 2022. As a reminder, in February 2022, Span published its dividend payment policy. In it, they announced that they plan to pay out between 20% to 50% of their consolidated profit in the form of dividends. This payment would be subject to several conditions, including development plans, capital market situation, net profit growth, revenue levels, etc.
In Q1 2022, sales revenue increased by 51% YoY, EBITDA increased by 145%, while net profit amounted to HRK 586m, an increase of over 10x YoY.
INA has published its Q1 2022 results. According to the results, INA increased its sales revenue by 51% YoY, amounting to HRK 5.96bn during Q1. The main drivers of this increase were the high hydrocarbon price levels, especially the rise of prices from late February due to the increased geopolitical risk and uncertainty regarding the effects of sanctions on the global energy markets. More specifically, increased gas prices added HRK 270m, while 67% higher Brent price added HRK 247m from crude oil and condensate sales, with other products having a positive impact of HRK 39m on the revenue.
The segment „Refining and Marketing, including Consumer Services and Retail“ grew by 49% from HRK 3.8bn in Q1 2021 to HRK 5.7bn in Q1 2022. An increase in revenue in the „Exploration and Production“ segment was also significant, growing by 97% YoY to HRK 1.35bn. Even so, the Company notes a decline in production, due to production optimization. In Croatia, the decline was due to the natural decline in Onshore oil fields, higher water cut on major gas fields, increased water cut on Offshore gas fields, as well as the natural decline in major gas condensate fields in Deep Podravina. In the international crude oil production, in Egypt, there was a decline due to lower well performance at all concessions, while in Angola, there was higher production due to a change of INA share on Block 3/05.
Even so, such rises in prices had a positive effect on EBITDA, which grew by 145% YoY to over HRK 1.14bn. The Exploration and Production segment was the main contributor to the EBITDA, contributing HRK 0.9bn in Q1 2022, which is roughly double in the current price environment, significantly compensating for the effect of the continued natural decline of production. Refining and Marketing, including Consumer Services and Retail, contributed the remainder of the EBITDA, amounting to HRK 385m in Q1 2022, an increase of 138% YoY. Because of these positive developments, net profit increased significantly, growing by more than 10x to HRK 586m.
Looking over to the investments, the Company increased its CAPEX considerably, growing it by 271% YoY to HRK 846m, out of which the largest increase comes from the domestic market, which grew by 354% YoY to HRK 812m. The majority of these investments were spent on Refining and Marketing. Rijeka Refinery Upgrade Project was the main strategic investment, which continues with construction works and equipment delivery to the site. At the same time, two new wells were finished as part of the Croatian offshore campaign.
Ina Key Financials (Q1 2021 vs. Q1 2022, HRKm)