In September 2022, CROBEX decreased by 4.7%, ending the month at 1,906.28 points.
Total equity turnover on ZSE amounted to EUR 56.7m (HRK 427.5m), which represents a significant increase of 4.4x MoM and an increase of 40.5% YoY. This also means that during the month the average daily turnover amounted to EUR 2.58m (HRK 19.4m).
We note that there were significant block trades of Tankerska Next Generation recorded during September 2022 amounting to HRK 248.5m (EUR 33m). These purchases were made by Tankerska Plovidba, the majority shareholders in Tankerska Next Generation, and due to the size of the transactions, various Croatian pension funds had a stake in the Company. Combined with the purchases made on the exchange during September, Tankerska Plovidba managed to acquire a total of 91.41% stake in Tankerska Next Generation. Afterward, trading of Tankerska Next Generation shares was suspended on the ZSE, and Tankerska Plovidba announced a voluntary takeover bid for the remaining shares in Tankerska Next Generation. If you would like to read more about this, click here.
Looking at the top 10 most traded stocks, they had a turnover of EUR 49.4m (HRK 372m), which would account for 87% of the total turnover. Breaking this down further, Tankerska Next Generation had the highest turnover, at HRK 274.5m (or 73.8%) due to the mentioned block turnover. Tankerska is followed by HT with 6.1% of total equity turnover, Valamar Riviera with 4%, Atlantska Plodivba with 3.8%. and Podravka with 3.7%. This would also mean that the top 5 most traded companies accounted for 91.3% of the total turnover on the exchange.
Meanwhile, the largest index on the ZSE, CROBEX, decreased by 4.7% during the month and ended it at 1,906.28 points. At the same time, CROBEX10 decreased by 5.9% and ended the month at 1,27,67 points. Looking at the CROBEX10 constituents’ performance during the month, each of the constituents reported a decline. AD Plastik had the largest decrease of 12.1% followed by Valamar Riviera at an 11.3% decline. Next is Atlantic at 9.7% followed by Adris and Arena Hospitality Group, both decreasing by 8% during the month. Two constituents with the best relative performance (or should we say the smallest decline in price) are Končar and Atlantska Plodivba, which recorded a MoM decline of 0.6% and 2%, respectively.
Performance of CROBEX10 constituents (September 2022, %)
Looking at the YTD performance, we can see that these trends are even more prominent. Again, we had 9 companies recording an overall decline, with Atlantska Plovidba being the only one to record an increase amounting to 4.8%. Performance of Atlantska Plovidba happened due to the huge demand for shipping in the period (something that continues to this day, but under higher costs and under higher risks of falling commodity prices due to recession fears, something that influenced ATPL’s performance in August and September despite good results). On the other hand, AD Plastik recorded the largest YTD decrease, declining by 55.4%, mostly due to the semiconductor shortage which affected the automotive industry during much of 2021, and is still currently affecting the industry, to a somewhat smaller extent. Combined with the fact that AD Plastik has substantial exposure in the Russian market, after Russia’s invasion of Ukraine, the Company recorded some of the largest declines in the Croatia market, something that it still hasn’t recovered from. Following them, we have Arena, which posted solid top-line results in H1 2022, but is still reeling from lower profitability due to higher OPEX, Atlantic, Ericsson NT, which again, had a somewhat positive top line but negative profitability results. They are followed by Valamar Riviera and Podravka, which was also affected by the rising OPEX costs.
Performance of CROBEX10 constituents (Beginning of 2022 – end of September, %)
OMW Petrom will build, in partnership with a Romanian electricity provider, four photovoltaic parks that should increase Romania’s installed solar power capacity by c. 30%. Total investments amount to over EUR 400m, which should be 70% funded through the Modernization Fund.
OMW Petrom, the largest integrated energy company in Southeast Europe, will build in partnership with Romanian electricity provider Complexul Energetic Oltenia, four photovoltaic parks that should increase Romania’s installed solar power capacity by c. 30%. The installed capacity of the four photovoltaic parks will increase the total national installed capacity of solar energy by as much as 30%. Current production stands at 1.4 GW, which should be further boosted by another 450 MW.
The photovoltaic parks will be built in Ișalnița, Tismana, Roșia and Rovinari, on the sites of the former mining operations operated by CE Oltenia. According to current estimates, the parks should supply electricity to the national energy system starting in 2024.
The total investments amount to over EUR 400m, which should c. 70% be financed through the Modernization Fund, the EU program that helps modernize energy systems and improve energy efficiency. The project will be developed through four separate legal entities, in a 50% – 50% equity interest structure. The intention is to sell the produced electricity by these entities to the two partners in equal shares. OMW Petrom did mention in it earlier financial statements the fact that Romania has the highest solar potential in the region and it, consequently, is well placed to benefit from EU funds for investments in photovoltaic power plants.
In yesterday’s trading session, the price share of OMW Petrom increased by 4.1% driven by positive sentiment.
OMW Petrom Share price [RON]
The 2022 revised revenue is estimated at EUR 300m (+EUR 60m), the revised EBITDA is estimated at EUR 99m (+EUR 38.3m), and finally, the revised net profit is estimated at EUR 62.9m (+EUR 31.5m).
According to a release by Luka Koper, the Company has revised its 2022 business plan because of the very good business results achieved by the Company in the period from January to August 2022, as well as due to harsh economic conditions which have been affected by the current situation in Ukraine and developments in the energy markets, reflected in increased energy prices and high inflation.
During this period, net sales revenue increased, and in particular the storage revenue, as a result of longer storage time in warehouses due to the current global logistics market conditions. As Luka Koper expects gradual normalization of this situation, the growth of the above-mentioned revenue should slow down by the end of the year. According to the new estimates, Luka Koper is expected to achieve net sales revenue of EUR 300m in 2022 an increase of 25.4% compared to its initial 2022 plan, and 33.6% compared to 2021. This will also be additionally affected by the increase in storage revenue, driven by higher service prices, an increase in the volume of throughput of all commodity groups, and an increase in the volume of ancillary services.
At the same time, Luka Koper also faces higher operating expenses in 2022. The current situation in the energy markets will lead to further increases in energy and raw material costs. Labour costs are also expected to increase, mainly due to higher throughput volumes and related headcount, higher merit payments, and the alignment of salaries with inflation. Furthermore, higher throughput will have an impact on the increase in the cost of port services and the throughput tax, while higher net sales revenue will lead to higher concession fee costs and certain other costs.
Because of this, the revised plan assumes that the EBITDA will amount to EUR 99m, which is an increase of 63% compared to the original plan, and 65.6% compared to 2021. EBIT for 2022 is revised to EUR 68.9m, an increase of 126% compared to the initial 2022 plan, and 124% compared to 2021. Finally, the revised net income for the 2022 plan is estimated at EUR 62.9m, an increase of 100% compared to the initial plan, and 110% compared to 2021.
Luka Koper 2021, initial 2022 and revised 2022 key financials, EURm
As a reminder, Luka Koper already recorded solid results in Q2 2022, and given this information, the results in Q3 and Q4 2022 should also be really good. If you would like to read more about Luka Koper’s Q2 2022 results, click here.