After the final member of the Romanian BET index published their H1 2020 results we bring you an overview of the top and bottom line performance of all index components.
Teraplast posted the largest top line increase as the manufacturer of construction materials continues their growth strategy. In second place comes BVB, whose top line went up 10% YoY on the back of higher trading activity amid the covid-19 breakout. According to the Stock Exchange in H1 2020 the total value of transactions on all markets, including offers, increased by 7% YoY, from RON 5.42 bn to RON 5.79 bn, due to the increase in the value of secondary public offers on the main stock market by RON 0.30 bn. Digi posted a top line increase of 8.3% mostly on the back of growing sales in Spain where the company’s sales grew due to new customer acquisitions as a result of more attractive and affordable offerings.
On the flip side, Sphera led the laggards with a top line decrease of 31.6% YoY. The decrease comes as no surprise considering the strong distancing measures taken to prevent the spread of the covid-19 virus. However, things are improving for Sphera as the company recently received permission to reopen indoor restaurants in Romania starting form Sep 1st. Meanwhile energy companies such as OMV Petrom were faced with a downtrend in commodity prices and lower sales volumes for petroleum products.
Top Line Development of BET Components in H1 2020 (%)
Turning our attention to the bottom line, Digi posted the worst bottom line performance as the company’s net loss amounted to RON -198.6m, from a net profit of RON 15.5m in 2019. Note that the deteriorating result came on the back of a plummeting net financial loss which doubled to RON -535.7m. However, this result was left out of the chart as it was to large to compare to other index members.
Meanwhile, when looking at the chart Sphera again leads the laggards as the company had to struggle with measures taken to prevent the spread of the covid-19 virus which led to the closure of their restaurants. Following Sphera comes Fondul Proprietatea whose bottom line turned negative due to the value decrease of the company’s holdings. The main contributors to the decrease were OMV Petrom (RON 696.6m, decrease in share price of 27.5%) and the RON 1.3bn decrease in value of unlisted holdings following the valuation update in June. The following unlisted companies recorded the highest decrease in NAV: Hidroelectrica (RON -179m), CN Aeroporturi Bucuresti (RON -287.1m), EDistributie Banat (RON 266.7m), E-Distributie Muntenia (RON -215.8m) and E-Distributie Dobrogea (RON -156.8m). Staying with the financial sector, both Banca Transilvania and BRD Bank posted lower bottom line results. As a result of the widespread crisis Banca Transilvania’s cost of risk increased to 1.3%, compared to zero during the same period of 2019. Meanwhile provisions reached RON 2.95bn, up by 16.5% as compared to the end-2019 level. BRD Banks’ net profit was hurt by a cost of risk which amounted to to RON 225.1m versus a release of RON 153m at the end of June 2019, mainly reflecting worsening economic outlook.
On the flip side, Transelectrica was able to more than double their net profit in H1 2020 based on an improvement in profitability. Thus, the total profit from operating activity increased by RON 108m compared to the previous year, mainly due to the reduction of operating costs.
Bottom Line Development of BET Components in H1 2020 (%)
The deal accounts for 1.52x of the company’s consolidated trailing 12m sales.
Luka Rijeka published an announcement on the Zagreb Stock Exchange stating that they have signed a contract with Kolektor Koling for performance of works of the reconstruction of traffic areas and tracks in the area of cargo port in the Rijeka basin.
The aim of the works is to improve the efficiency of cargo management in the Rijeka basin and to enable better connection with the Tras-European Transport Network- The contracted value of the works is approx. HRK 212.2m, without VAT, while the reconstruction is planned to last until the end of 2022. To put things into a perspective, the mentioned deal accounts for 1.52x of the company’s consolidated trailing 12m sales.
The works will be co-financed from the Connecting Europe Financial Instrument (CEF).
Trading statistics for August 2020 show an average daily turnover of EUR 7.35m (-0.5% YoY).
The Bucharest Stock Exchange published their trading statistics for August 2020, showing an average daily turnover of EUR 7.35m, representing a low decrease of 0.5% YoY.
When observing the top traded shares, one can notice that Banca Transilvania recorded the highest turnover of RON 222.3m. OMV Petrom follows with a turnover of RON 88.5m. Next come Fondul Proprietatea with RON 76.4m and BRD with 72.7m.
Turning our attention to the main index of the BVB, in August, BET witnessed a very solid increase of 7.39% ending the month with 8,997.28 points. As of end August, BET is still down 9.8% compared to the beginning of the year.
Such an increase of BET came mostly on the back of a strong share price performance of index heavy weights OMV Petrom (+15.8%) and Banca Transilvania (+14.3%).
It is also important to note that out of 17 index constituents, 6 recorded a double digit increase as visible on the graph, while Conpet and Fondul Proprietatea lead the losers with -0.5% and 0.8%, respectively.
As a result of the above mentioned, the market cap of the BVB recorded an increase of 6.7% MoM, amounting to EUR 26.31bn.
Share Price Performance of BET Constituents in August (%)