IC Market Espresso 8 Dec 2021

 
Trading Activity on BVB – November 2021

In November, BET decreased by -3.25% MoM, closing at 12,196.61 points.

The Bucharest Stock Exchange experienced a negative sentiment in November, with BET noting a MoM decrease of 3.25% (closing at 12,196.61 points). The average daily turnover in November amounted to EUR 17.75m (-30% MoM).

Banca Transilvania noted the highest turnover in November of EUR 72.5m, followed by OMV Petrom at EUR 15.25m and MedLife with a total turnover of  EUR 15.22m.

When looking at the index constituents, 13 out of 19 ended the month in red, with Electrica decreasing the most (-16.78%) MoM, followed by Transelectrica with a decrease of -16.53% MoM and Transgaz with a decrease of -14.79% MoM. On the flipside, One United Properties experienced by far the largest increase of 24.24% MoM, followed by Fondul with +5.23% MoM.

Performance of BET Constituents in November (%)

MedLife Announces the Increase of the Existing Syndicated Loan by the Amount of EUR 50m

MedLife announces the increase of the existing syndicated loan to EUR 185m, an increase of EUR 50m.

MedLife announced the increase of the existing syndicated loan in the amount of EUR 50m, to a total value of EUR 185m. The funds will be used to strengthen the position of the Company at the national level, increase its presence at the regional level, as well as amplify the research projects carried out by the Company.

The Company aims to develop regional hospitals and expand the medical infrastructure. They also aim to consolidate their presence on the international market, with the Company already being present on the Hungarian market since 2019. Another priority is the continuation of the research division, which plays an important role in monitoring the pandemic, with the Company conducting numerous studies with its own resources.

As a reminder, Medlife closed the first 9M of this year with a consolidated turnover of EUR 240m (RON 1.2bn), up by 56.5% compared to the period last year. The financial outlook for the end of the year is even more optimistic, with MedLife potentially being the first medical company in Romania to reach one-third of a billion euros turnover this year.

OMV Petrom Announces Its Strategy 2030

Omv Petrom announces its Strategy 2030, focusing on transformation for a lower carbon future, stronger commitment to dividend growth.

Yesterday, OMV Petrom announced its Strategy 2030. Through this strategy, the Company aims to transform itself into a lower carbon integrated energy company. To achieve this, they plan to invest EUR 11bn by 2030, with over 35% (EUR 3.7bn) of the investment going to low and zero-carbon opportunities.

The 2030 strategy is built on three directions: Transition to low and zero-carbon, growth of regional gas, and optimization of traditional business. The strategy is expected to have four major outcomes. To drive significant growth in cash flows, achieve a competitive dividend policy, make a material impact on the transition to lower carbon business and reduce the carbon intensity throughout all business segments and strengthen Romania’s and South-East Europe’s security of supply and the EU’s energy resilience.

In their transition to low and zero-carbon, the Company states their goal is net-zero operations by 2050. To achieve this, they plan to decarbonize current operations, expand the lower carbon gas business, and pursue low and zero-carbon business opportunities.

To drive the growth of regional gas, the Company continues exploration which focuses on the Black Sea area, which is estimated to hold significant resources, through its Neptun Deep development project. The company’s estimate in terms of recoverable resources is around 50 bcm and the CAPEX is expected to be less than EUR 2bn.

To optimize its traditional business, the Company aims to focus on “value over volume and operational excellence in all business segments”. The share of total CAPEX allocated to traditional assets will decrease from 100% to around 45% by 2030. At the same time, The Company expects that natural gas with constitute around 70% of the hydrocarbon production by 2030.

Financial targets for 2030 include robust cash generation and a competitive dividend policy. To drive this, the Company announced a stronger commitment to dividend growth, namely by increasing the base dividend per share by 5-10% per year on average by 2030. Special dividends may also be distributed if the market favors it and the CAPEX is fully funded. Total dividends are estimated to represent approx. 40% of the Company’s operating cash flows for 2022-2030.