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Fondul Proprietatea boosts H1 net profit
Romanian property restitution fund Fondul Proprietatea [BSE:FP] posted a net profit of 709.3 million lei ($182 million/155 million euro) in the first half of 2017, up 31% on the year, seenews.com reports.
"The main contribution to the profit recorded in the first six months of 2017 was the gross dividend income, which increased in 2017 due to the OMV Petrom [BSE:SNP] decision to distribute dividends in 2017 (106.8 million lei) and due to higher dividends distributed by Hidroelectrica SA (206.6 million lei)," Fondul Proprietatea said in a filing to the Bucharest Stock Exchange, BVB, late on Friday.
Shareholders’ equity totalled 10.6 billion lei in the first half, down 10.6% compared to the year-ago period. The fund's net asset value fell to some 10.84 billion lei at the end of June 2017 from 11.43 billion lei a year earlier.
During the first six months of 2017, the fund bought back 788 million own shares as part of its seventh and eighth buy-back programmes, representing 7.82% of the total issued shares as at end-June 2017, for a total acquisition value of 713.8 million lei, excluding transaction costs.
Fondul Proprietatea's current market capitalisation stands at 8.75 billion lei.
In July, the property restitution fund said it has initiated legal action against board members and managers of Engie Romania (formerly known as GDF Suez Romania) over management and consultancy service contracts.
Also in July, Romanian power distributor and supplier Electrica [BSE:EL] signed a 752 million lei memorandum of understanding (MoU) for the buyout of minority stakes in four of its subsidiaries from Fondul Proprietatea.
Blue chip Fondul Proprietatea was set up in 2005 to compensate pre-Communist property owners for their assets nationalised after 1945.
In 2016, the fund sold a 6.4% stake in oil and gas group OMV Petrom [BSE:SNP] for 682 million lei in four separate transactions. Before the sale Fondul Proprietatea owned 19% of OMV Petrom.
Also last year, Fondul Proprietatea sold its entire stake in the Romanian units of German utility E.ON - Distributie and Energie, and its entire remaining 5.85% stake in natural gas producer Romgaz [BSE:SNG] for $137.2 million (120.6 million euro).
In 2015, the fund sold its stakes in real estate company Primcom, metal forging company Forsev, market researcher SIFI CJ Agro, Electroconstructia Elco Cluj, and Petrotel Lukoil.
The fund's shares were traded 0.35% higher at 0.8720 lei by 1000 CET on Monday on the BVB.