August 31 (SeeNews) - Romanian property restitution fund Fondul Proprietatea [BSE:FP] said on Wednesday its net profit soared 129% year-on-year in the six months through June, reaching 4.129 billion lei ($851 million/849 million euro).
The main contributor to the profit was the net gain generated by the valuation update for majority state-owned hydro power producer Hidroelectrica, net off by the negative share price evolution of the fund’s listed holdings, mainly coming from oil and gas group OMV Petrom [BSE:SNP], Fondul Proprietatea said in a filing to the Bucharest Stock Exchange, BVB.
The fund's net asset value (NAV) rose to 16.32 billion lei at the end of June 2022 from 13.2 billion lei at end-2021. Fondul Proprietatea's current market capitalisation stands at 12.6 billion lei.
At the end of June, the fund's portfolio was composed of holdings in 32 companies - six listed and 26 unlisted - a combination of privately held and state-controlled entities. The largest unlisted holding is Hidroelectrica, which represents 76.93% of the fund's NAV, while the largest listed holding company is OMV Petrom, accounting for 5.04% of the NAV.
Earlier this month, the government announced that Fondul Proprietatea will launch an initial public offering (IPO) of up to 19.94% interest in Hidroelectrica by the end of the first half of 2023.
The fund also holds stakes in gas supply group Engie Romania, salt producer Salrom, Maritime Ports Administration SA Constanta, electricity producer Nuclearelectrica [BSE:SNN], aluminium producer Alro [BSE:ALR] and aerospace company Romaero [BSE:RORX].
Fondul announced at end-July that it aims to list Salrom in the first half of 2023. The economy ministry owns 51% of Salrom and 49% is controlled by the investment fund.
Fondul Proprietatea's shares traded 0.71% higher at 1.98 lei by 1043 CET on Wednesday on the BVB.
OMV Petrom shares changed hands 0.31% lower at 0.4755 lei by 1044 CET, whereas Nuclearelectrica traded 0.11% higher at 45 lei by 1043 CET.
Alro shares traded 0.69% higher at 1.4550 lei by 1028 CET on Wednesday, whereas Romaero shares last traded on August 26, closing at 33.4 lei.
Launched in December 2005, Fondul Proprietatea was established to compensate Romanians whose properties were confiscated by the former communist government. Following an international tender announced in December 2008, Franklin Templeton Investments was officially appointed as investment manager and sole administrator of the fund in September 2010. The fund was listed on the Bucharest Stock Exchange in 2011 and on the Specialist Fund Market of the London Stock Exchange by means of global depositary receipts (GDRs) in 2015.
(1 euro = 4.9652 Romanian lei)
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