Fondul Proprietatea Financial Results for H1 2022

Fondul Proprietatea published today its financial results for the six months ended 30 June 2022 which include some notable highlights. The Fund’s share price performed well in the first part of 2022. As at the end of the first six months of the year, on 30 June 2022, the share price was RON 2.0600, implying a discount of 20.32%, based on the latest NAV available at the date of the calculation.

The share price total return during the first half of 2022 was 3%. The total NAV as at 30 June 2022 was 23.3% higher compared to the end of 2021, while the NAV per share increased by 23% over the same period.

During the period between 1 January 2022 and 30 June 2022, the discount to NAV was below 15% in 29 trading days (47.5% of the period) while in the remaining 32 days was above 15% (52.5% of the period). The average share price to NAV discount was 25.9% in the same period.

The profit realized by Fondul Proprietatea in the first six months of 2022 was RON 4,129.7 million compared with RON 1,801.1 million for the 6-month period ended 30 June 2021. The main contributor to the profit recorded in the first half of year 2022 was the net gain from equity instruments at fair value through profit or loss amounting to RON 3,295.3 million, mainly generated by the valuation updates for Hidroelectrica, net off by the negative share price evolution of the Fund’s listed holdings (mainly coming from OMV Petrom SA).

The total amount of the gross dividend income recorded by the Fund in the six-month period ended 30 June 2022 is RON 858.9 million, and the most significant amounts relate to P.E.E.H. Hidroelectrica SA and OMV Petrom SA.

The decrease in liquid assets by 11.3% during the six-month period ended 30 June 2022 was mainly due to the amounts paid for tor acquisition of treasury shares (RON 760.1 million), dividends paid, net of withholding tax (RON 1,021.8 million), partially offset by proceeds from disposal of equity investments following the sale of the participation in OMV Petrom (RON 978.3 million) and dividends received, net of withholding tax (RON 626.2 million).

Payables have increased by 104.9% compared to 31 December 2021 mainly due to the increase in administration fee payables due to the distribution fees chargeable following the buy-back tender offer performed by the Fund.

Other liabilities have decreased by 66.3% compared to 31 December 2021 due the fact that at 31 December 2021, the payable due to the dividend distribution with payment date on 18 February 2022 was fully booked.