Adris concluded a buyback in which they bought 54,938 regular shares (ADRSRA CZ) at HRK 525 per share and 65,688 preferred shares (ADRSPA CZ) at HRK 444 per share.

Following up on Adris’ share buyback tender, the company announced that it has concluded a share buyback programme worth HRK 58m. To be specific, Adris bought back 54,938 regular shares at a price of HRK 525 per share, which represents 0.57% of the same shares, and 0.33% of the total share capital.

The company also bought 65,688 preferred shares at a share price of HRK 444 per share, which represents 0.97% of the same shares, and 0.4% of the total share capital.

After the conclusion of this buyback, Adris owns 149,820 of regular shares and 321,015 of preferredshares . In total Adris owns 470,835 of its shares, which represents 2.87% of the share capital.

As a reminder, Adris Group published last week they are ready for another big share-buyback programme. Adris targeted up to 1,000,000 ordinary shares ADRSRA (10.40% of their total number) and up to 200,000 preferred share ADRSPA (2.95% of their total number). Bids were open from 18 February until 25 February.

To read our blog on share buybacks click here.

In 2018, Nuclearelectrica observed an increase in total revenues of 12.7% YoY, an increase in EBITDA of 17.9% and an increase in net income 27.4%

As Nuclearelctrica published their 2018 preliminary results, we are bringing you some key takes from the report. According to it, in 2018, Nuclearelectrica observed total revenues of RON 2.2bn, which represents an increase of 12.7% YoY. When observing solely electricity sales (which continue to account for almost all of the total sales) in Q4 2018, they increased by 15% YoY, amounting to RON 597.6m. Such an increase could be attributed to both higher sold quantities and a rise in selling prices (on widespread increases in wholesale electricity prices and due to market liberalization).

Total operating expenses amounted to RON 1.6bn, which represents an increase of 5.7%. The increase could partially be attributed to higher personnel expenses, which increased by 20% (+ RON 64m).

Operating performance lead to an increase in EBITDA of 17.9%, which amounted to RON 1.1bn.

Furthermore, when observing Nuclearelectrica’s net financial result, it went from RON -18.5m to RON 36.2m.  The positive net financial result was reflected in an increase in EBT of 59%, amounting to RON 571.4m.

Meanwhile, net income increased by 27.4%, which amounts to RON 309.5m. Note that the company paid RON 180.8m of taxes, which represents an increase of RON 127.9m (+241%).

Nuclearelectrica Performance (2015 – 2018) (RON m)

Turning our attention to dividends, in 2018, the company paid out a dividend of RON 0.9 per share and an additional dividend of RON 1.61 per share. These dividends translate into a dividend yield of 30.9%, which is an increase of 21.7 p.p. Note that one of the reasons why the dividend yield was so high in 2018 was that the Romanian Government required a higher dividend. This was done, as the government had issues with filling the budget gap.

Dividend Yield (2014 – 2018) (%)

*compared to the share price a day before the dividend proposa

In 2018, Alro observed an increase in sales of 9% YoY, a decrease in EBITDA of 14% and a decrease in net income of 40%.

Alro published their 2018 preliminary results. According to the report, in 2018, The Group recorded a 9% YoY increase in sales, amounting to RON 3bn. The increase could be observed mainly in the alumina and primary aluminium segments.

Note that in July 2018, Alro started an upgrading programme on one of its rolling mills. As a result, aluminium sales decreased by RON 17m and by 6% in terms of quantity. However, during this period the Group notes that they focused on other aluminium products production and sale, such as those in the primary aluminium range.

In 2018, the cost of goods sold amounted to RON 2.3bn, which represents an increase of 13%. The rise in COGS was mostly generated by the increase of the raw materials and utilities purchase prices, in line with the prices on the dedicated markets.  As a result, the gross profit margin decreased by 3p.p. to 22%.

Furthermore, SG&A increased by 21%, amounting to RON 310.5m. The Group explains the increase as they were involved in a large number of projects aimed at improving the operational performances and the market image.

Higher expenses led to a decrease in EBITDA (-14%) which amounted to RON 487.4m

Going further down the P&L, Alro turned a net loss from derivative financial instruments of RON -1.1m to a net gain of RON 35.2m. On the other hand, the Group recorded a net foreign exchange loss of RON -19.6m which could be attributed to the reevaluation of the loans and other liabilities of the Group in foreign currencies.

When observing the companies net income, it amounted to RON 232.7m, which represents a decrease of 40%. Note that the decrease in net income could also be attributed to a higher income tax by RON 62m (+306%).

Alro Performance (2015 – 2018) (RON m)

*Net loss in 2015 was RON -0.02m

Its worth mentioning that in December 2018, Vimteco N.V., the majority shareholder of Alro, together with the shareholder Conef S.A, carried out a private placement for 33.7% of Alro’s share capital. Note that Vimetco N.V., continues to hold 54.19% of Alro’s share capital.