Fondul Proprietatea releases Q3 2020 financial results

Fondul Proprietatea (hereinafter “The Fund”) has published today its financial results for the third quarter of 2020 and would like to share the most important highlights:

• The share price continued to recover after the significant drop recorded by all capital markets following the COVID-19 outbreak at the beginning of the year and, as at the end of September 2020, was 16.7% higher compared to the end of March 2020, and 7.0% higher compared to end of December 2019.
• At the end of September 2020, the Fund’s NAV was RON 9.91 billion (USD 2.38 billion) and the NAV/share reached RON 1.5881 per share, 8.4% lower compared to the 31 December 2019 NAV.
• The discount of the share price to NAV at the end of September 2020 was at a record low level of 18.5%, compared to 23.6% at the end of Q3 2019
• The top performers in the third quarter were the listed companies OMV Petrom and Nuclearelectrica, followed by Bucharest Airports, Salrom and Enel Energie Muntenia. Bottom performers were listed companies Alcom and Romaero, but overall performance for the NAV per share was positive, of 1.7%.
• The NAV total return in the third quarter was 1.66%, the total return for the local shares was 2.78%, while the total return for the GDRs was 7.64%. For the January – September period, the NAV total return was down 4.37%, while the total return for local shares was up 12.92%, and up 18.86% for the GDRs.
• The Fund recorded a net loss from equity investments at fair value through profit or loss for the first nine months of 2020 of RON 1,885.7 million, mainly generated by (1) the decrease in unlisted holdings value of RON 1,264.4 million following the valuation update (mostly related to CN Aeroporturi Bucuresti SA, E-Distributie companies and Hidroelectrica SA), which also considered the effect of dividends distributed by unlisted companies of RON 940 million and (2) OMV Petrom SA, as a result of the 25.1% share price decrease (total impact RON 642.8 million).
• Gross dividend income for the 9-month period ended 30 September 2020 included the dividend income earned from the Fund’s portfolio companies, mainly from E-Distributie companies (RON 522.9 million), Hidroelectrica SA (RON 399.5 million) and OMV Petrom SA (RON 175.6 million).
• The increase in liquid assets by 128.6% during January – September 2020 is mainly due to the cash inflows from the dividends collected from portfolio companies (RON 1,197.2 million) and the proceeds from disposal of equity investments (RON 635.4 million), which were offset by the acquisition of own shares within the eleventh buy-back programme (RON 790.7 million), including the tender offers finalized in March and September, and by the payments to shareholders regarding cash distributions in total amount of RON 396.6 million.