Fondul Proprietatea financial results for the first half of 2021

Fondul Proprietatea (hereinafter “The Fund”) published today its financial results for the six months ended 30 June 2021 and would like to share the following highlights.

• The share price had an impressive performance in the first half of the year, reaching another milestone in the Fund’s history: trading at a premium. As at the end of the first six months of the year, on 30 June 2021, the share price was RON 1.85, implying a trading premium of 0.77%, based on the NAV available at the date of the calculation.
• The share price total return during the first half of 2021 was 9%. The total NAV as at 30 June 2021 was 11.3% higher compared to the end of 2020, while the NAV per share increased by 13.8% over the same period.
• The discount to NAV was below 15%, for both shares and GDRs in all trading days during 1 January 2021 and 30 June 2021, while the average share price to NAV discount was 4.2% during the same period.
• On 28 April 2021, the shareholders approved the distribution of a gross special dividend of RON 0.072 per share. The Fund started the payment of dividends on 22 June 2021.
• The profit realized by Fondul Proprietatea in the first six months of 2021 was RON 1,801.1 million. The main contributor to the profit was the net unrealised gain from equity investments at fair value through profit or loss, generated by OMV Petrom SA as a result of the positive evolution of this company’s share price during the first semester of 2021 (increase of RON 243.8 million, share price increased of 16.9%) and by the increase in the value of unlisted holdings in the portfolio following the valuation update process (mainly due to Hidroelectrica SA, that registered an increase in valuation of RON 909.7 million).
• Gross dividend income for the six-month period ended 30 June 2021 was RON 1 milion. It included the dividend income earned from the Fund’s portfolio companies, mainly from Hidroelectrica SA (RON 456 million) and OMV Petrom SA (RON 122.8 million).
• The cash and cash equivalents (liquid assets) of the Fund during the first six months of 2021 included term deposits with banks and government bonds issued by the Ministry of Public Finance of Romania. All instruments are denominated in RON and have maturities of up to one year.
• The decrease in liquid assets by 48% during the six-month period ended 30 June 2021 was mainly due to cash outflows related to dividend payments (RON 380.4 million) and to the acquisition of treasury shares performed during the twelfth buy-back programme (RON 209.8 million), which were offset mainly by the proceeds registered from the sale of bonds – net increase of RON 297.4 million.
• Payables have increased by 86% compared to 31 December 2020 mainly due to the registration of the liability related to the tax on dividends due to State Budget (RON 11.8 million).
• Other liabilities have increased by 96% compared to 31 December 2020 as the payment date for the annual dividend was 22 June 2021 and not all correspondent amounts have been transferred to shareholders yet.

Statement of Financial Position

Source: IFRS financial statements

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