As the revision of CROBEX occurred this week (21 September), we decided to present you with the updated free float of CROBEX constituents.

In our analysis we considered free float to equal all individual shareholdings lower than 5%, while pension funds and UCITS funds were considered as free float regardless of their shareholding percentage.

Free Float of CROBEX Constituents (%)

Among the 19 CROBEX components 9 have a free float higher than 50%, indicating that a small group of majority shareholders still holds the roughly half of CROBEX components. Of the constituents, newly added Ingra leads the list with a free float of 93.6%.  Adris (preferred) and Atlantska Plovidba follow with 92.3% and 82.4%, respectively. Podravka comes next with a free float of 78.2%.

On the other side, ZABA, almost completely owned by Unicredit (84%), has the lowest free float of 3.4%. Kraš comes next, with a free float of 11.7%, as it is mostly owned by MI Braća Pivac (52.9%). Besides that, Kappa Star Limited has a significant share in Kraš of 30.13%.
It is worth noting that the Prime Market, which is the Stock Exchange’s most demanding market regarding the requirements set before the issuer, requires the issuer to have a free float of at least 35%. If we were to compare CROBEX to that parameter, only 3 companies would not meet the criteria.

The changes in the planned commodity prices are expected to result in net impairment charges amounting to around RON 350m after tax in Q3 2020.

OMV Petrom, published an announcement in which they revised their planning assumptions to reflect changes in the market environment.

 In Upstream, the long-term Brent oil price assumptions are now reduced to USD 60/bbl, compared to USD 75/bbl applied before. The detailed Brent oil price assumptions are as follows:

• For 2021, the company expects a continued macroeconomic impact of the COVID-19 pandemic and confirms its oil price forecast of USD 50/bbl;
• The oil price expectation for 2022 and 2023 are reduced to USD 60/bbl from USD 70/bbl and USD 75/bbl, respectively.
• For the years 2024 to 2029, the company assumes a Brent oil price of USD 65/bbl (previously USD 75/bbl), which is expected to gradually decline to USD 60/bbl until 2035;
• From 2035 onwards, we use a Brent oil price of USD 60/bbl (previously USD 75/bbl);
• All assumptions for the years 2025 onwards are based on 2025 real terms.

The updated oil price assumptions are expected to result in non-cash net impairments of around RON 800m after tax, which include both write-offs of exploration intangibles and net impairments for tangible assets.

In Downstream Gas, the long-term power and CO2 price assumptions were revised taking into account the improved power generation market. This led to the full reversal of impairments for Brazi gas-fired power plant, amounting to around RON 450m after tax. The above changes in the planned commodity prices are expected to result in net impairment charges amounting to around RON 350m after tax in Q3 2020.